Businesses trading with customers in Eastern Europe are being warned to expect a potential increase in payment defaults, according to a report from trade credit insurer Atradius. Its Payment Practices Barometer analyses payment behaviours of businesses with the latest report focusing on Eastern Europe, including the Czech Republic, Hungary, Poland, Slovakia and Turkey. The report reveals that 86% of Eastern European customers have paid their B2B invoices late over the last year. For 58%, the reason was attributable to customers’ liquidity issues – compared to 52% of Western European businesses. The report highlights Hungary as experiencing the highest number of liquidity related late payments at 78%.
McDonald’s and L’Oréal are shifting to deforestation-free commodity supply chains alongside six other companies who make up a newly-expanded supply chain platform of CDP, the environmental data body. Working with CDP the companies are collating information from their suppliers on any links and risk management relating to deforestation, and with deforestation responsible for 10-15 per cent of greenhouse gas emissions the issue is becoming more pressing to both policymakers and consumers.
EU GDPR is a “game-changing” piece of data protection legislation that comes into effect one year from today. While the legislation includes various components related to how organisations collect, store, manage and protect customer data, the ‘right to be forgotten’ gives individuals the right to have personal data erased. But if most organisations cannot locate where their customer data is stored (both on-premise and offsite), it will be difficult to fulfil ‘right to be forgotten’ requests.
IBM Resilient has launched a new offering aimed at helping companies address the new General Data Protection Regulation (GDPR). GDPR may require significant changes to the way organisations respond to consumer data breaches. For example, any organisation that does business in Europe will have 72 hours to notify the supervising authority and data subject of a breach, or risk being fined €20 million or up to 4% of their global annual turnover. A recent Ponemon Institute study found that 75% of organisations admit they lack a formal cyber security incident response plan applied consistently across the organisation, meaning that GDPR response could prove to be challenging.
Twenty-two people have been killed and scores injured following an explosion at a pop concert in Manchester last night. The incident is being treated as a terrorist attack. Suspending election campaigning, Theresa May is set to hold a COBR committee meeting this morning.
The Joint Terrorism Analysis Centre has advised that the UK threat level be increased from severe to critical. This is the highest level of security preparedness in the UK. The change comes after 22 people were killed in a terrorist attack at Manchester Arena Monday night. Fifty-nine people were also injured, and some are still missing.
EOS Risk has joined red24 and S-RM on CFC’s panel of security companies specialising in global kidnap and extortion incidents. K&R team leader at CFC, Mark Baker, says: “Highly skilled, swift response is of the utmost importance if something does go wrong in this area of insurance. Our cover provides a 24/7 emergency hotline in the event of an incident with no limit to consultant fees incurred. I’m delighted that we have been able to add EOS Risk to our existing panel, providing our insureds with an exceptional choice of experts able to help them when they need it the most.”
The UK discount rate must better reflect investment strategies, be subject to regular review and set by a politically accountable minister, according to recommendations set out by the International Underwriting Association. Responding to a Ministry of Justice consultation on how courts determine lump sum compensation payments for personal injury claims, the association stated that reform of the current methodology is essential. It pledged support for the ‘100% compensation principle’ which states that claimants should neither be overcompensated nor undercompensated.
With Emmanuel Macron now installed as president, France has for now defused the run of electoral bombshells that have buffeted geopolitical stability over the last year. However, the global outlook remains rocky according a new report from global risk consultancy Verisk Maplecroft, which identifies the Trump administration’s unpredictability in the foreign policy arena as a major geopolitical wildcard.
The recent ransomware attacks in over 150 countries reveals the widening scope of cyber risk exposures and is likely to increase demand for cyber insurance protection. This is according to Fitch Ratings, which prescribes a cautious approach to adding cyber exposures due to a considerable uncertainty in pricing and underwriting this risk. Aggressive expansion by individual underwriters into the segment, it warns, could be credit negative.
BIBA believes that urgent changes are needed in the way the damages discount rate is set. In its response to the Ministry of Justice’s Damages Discount Rate consultation, the British Insurance Brokers’ Association (BIBA) outlined some current deficiencies in the law to set the rate and called for urgent changes and for experts to be involved.
Lloyd’s has welcomed the Arctic Council Ministerial Declaration establishing the Arctic Shipping Best Practices Information Forum, which will hold its first meeting in London on June 5-6. The Declaration was made at a Ministerial Summit this week in Alaska, attended by the foreign ministers of the eight Arctic states, including US Secretary of State, Rex Tillerson.
Issues relating to the office environment are behind a growing number of invocations, according to analysis from Sungard Availability Services. Some eight in ten of their customers’ invocations in 2016 largely stemmed from an increasingly vulnerable physical workplace environment. The analysis suggests that companies may be in danger of neglecting their physical surroundings, as they focus efforts on ensuring a more robust and secure virtual infrastructure.
According to NHS Digital, a number of hospitals and trusts in England have been affected by a large-scale ransomware attack. Trusts and hospitals in London, Blackburn, Nottingham, Cumbria and Hertfordshire have been affected. IT and telephone systems have been shut down. Some hospitals are reported to be diverting emergency patients, and there are reports of ransom demands. The NHS has not said that any patient data has been accessed.
The Insurance Act 2015 came into force almost a year ago and the Enterprise Act 2015 took effect on 4 May 2017 impacting both the placement of commercial insurance and the way claims are considered. To help bring about clarity around some of the more challenging adaptation issues, BIBA, in conjunction with insurance governance specialist, Mactavish has launched its Insurance Act 2015 & Enterprise Act 2016 Adaptation Guide
Payment delays and insolvencies are predicted to rise in the consumer durables retail sector this year, reveals a new economic report from trade credit insurer Atradius. While payment delays and insolvencies have remained relatively stable over the last six months, the Atradius Consumer Durables Market Monitor reports a weaker picture for the six months ahead. Growing economic uncertainty, expected to impact consumer spending, and higher import costs are the primary factors behind the deteriorating outlook and Atradius is warning manufacturers, suppliers and retailers to take extra measures to protect themselves.
Allianz Global Corporate & Specialty SE (AGCS) has announced a partnership with US-based analytics company, Praedicat to better predict catastrophe liability risks. Praedicat’s modelling engine uses machine learning technology to scan large volumes of data from peer-reviewed science publications and profile the likelihood that products or substances will generate litigation risks over their lifecycle.
According to FM Global's latest annual index, oil-rich Saudi Arabia has emerged as a country with above-average inherent cyber risk. Its high internet penetration, combined with a limited cyber security industry, make it a more vulnerable target. Developing India, by contrast, with its growing information technology industry, emerges as a country with below-average inherent cyber risk.
The CPNI, the UK government authority for providing security advice to the UK national infrastructure, has published the Passport to Good Security, a best practice guide for senior executives to help create an effective risk management strategy, which Pool Re considers a valuable tool for risk management and insurance professionals working to improve the resilience of businesses against domestic and international terror threats.
British Insurance Brokers' Association chief Steve White used his opening address at the association's annual conference today to warn the industry to be wary of current turmoil affecting the sector. He said that in political and economic terms, there are storm clouds on the horizon that BIBA is tracking.
Companies across the UK have been forced to pay out over £61m in health and safety fines throughout 2016 – almost 2.5 times that seen in 2015, according to BLM’s health and safety tracker. Research conducted by the insurance and risk law firm found that there were a total of 292 incidents recorded during 2016, with an average pay-out of almost a quarter of a million pounds. This is four times the £69,500 average cost seen the previous year, where 358 cases were brought.
This is a timely analysis of the increasing intrusion into strategically important cyber networks. “To assure their own cyber security, states will sometimes intrude into the strategically important networks of other states and will threaten – often unintentionally – the security of those other states, risking escalation and undermining stability,” the author writes. “This concept is hereafter referred to as the cyber security dilemma.”
Since its formation in 2004 the Institute of Operational Risk has expanded internationally through a number of chapters in the UK and Europe, Hong Kong and Nigeria. Throughout this period our mission has been solely focused on developing the discipline of operational risk. In 2016 we set our future strategy towards becoming the professional body of choice for operational risk practitioners.
Companies are paying lip-service to compliance and putting themselves at risk by failing to appropriately prioritise and resource it. The extent to which compliance functions are stretched contrasts with the increasingly aggressive and joined-up activity of enforcement agencies across the world and the punitive fines imposed on companies for non-compliance.
Police insurance specialist George Burrows, part of Arthur J. Gallagher, has won a tender to secure a three year partnership with the British Transport Police Federation, providing a suite of personal insurance covers. British Transport Police protects the railway and light-rail systems throughout England, Wales and Scotland, with 3,069. Important aspects of the programme include life insurance without exclusions, accident / sickness / counselling and legal expenses benefits.
Difficulty in quantifying losses tops the list of challenges to business interruption claims, according to a survey carried out by US-based risk and insurance association, RIMS. By taking control of their data, establishing a team and developing plausible business interruption figures before losses occur, risk managers can do much to lessen the confusion and frustration common to these claims process, according to the society's Business Interruption Survey 2017.
RMS has expanded its range of cyber models to include a new class of what it calls ‘cyber physical’ models. These explore a range of cyber attack scenarios that can cause physical damage to property, aimed at helping property re/insurers to manage this growing risk.
Swiss Re estimates its claims burden from Tropical Cyclone Debbie in Australia at approximately US$350m, net of retrocession and before tax. Swiss Re expects Cyclone Debbie to have resulted in a higher share of large commercial and corporate losses compared to similar events in the past. The total insured market losses for wind, flood and storm surge damages are estimated to be approximately US$1.3bn.
Cat modelling firm AIR Worldwide has released a cyber risk modelling application for the insurance and reinsurance markets. ARC (Analytics of Risk from Cyber) has been designed to evaluate any commercial policy (including those vulnerable to silent cyber), measure and monitor aggregations of cyber risk within a portfolio, and estimate potential insured cyber losses for portfolios.
National security is at the top of the agenda in France following the murder of a policeman by a suspected terrorist in Paris yesterday. Two others were wounded in the incident in the busy Champs Elysées area of the capital on Thursday. The incident takes place just days before the first round of voting begins for the presidential election. According to the Foreign Office, there continues to be a high threat from terrorism across France. Due to ongoing threats to France by Islamist terrorist groups, and recent French military intervention against ISIS, the French government has warned the public to be extra vigilant and has reinforced its own domestic and overseas security measures.
The newest entrant to the UK business continuity market is opening the doors to its first work area recovery centre. The new, 4000 sq ft Crossharbour Crisis Management Centre is the first independent recovery centre to open in the UK in over a decade, and was designed and built specifically to meet the needs of London businesses.
The government’s latest study of cyber preparedness among UK companies suggests that nearly seven in ten large businesses identified a breach or attack in the past year, and puts the average cost to large businesses of all breaches over the period at £20,000 and in some cases millions. The Cyber Security Breaches Survey 2017 also shows businesses holding electronic personal data on customers were much more likely to suffer cyber breaches than those that do not (51% compared with 37%).
Geopolitical instability and workforce management issues are the biggest challenges facing construction sector executives, according to new research released by Willis Towers Watson. It surveyed 350 C-suite executives across the globe to look at the most significant megatrends and critical risks facing the sector.
Crises Control has released two new modules on its platform and a new business solution. A new Task Manager Module allows the delegation and tracking of completed tasks and the creation of complex task work flows using predecessor logic; while the iSOP Wizard module allows users to quickly create their own bespoke business continuity action plans.
We live in uncertain times and how organisations respond to those times will determine the winners and losers in an environment in which risks are emerging faster and with more complexity. Those organisations that deliver or commission public services are no different.
The Lloyd’s Market Association (LMA) has submitted a detailed response to the Department for Transport’s (DfT) Technical Consultation on Motor Insurance. The UK government called for input from those involved within the motor insurance industry following the 2014 Vnuk judgement, a European Court of Justice decision that broadened the scope of compulsory motor insurance.
Corporate culture is increasingly coming under the spotlight as an important factor for gaining a competitive edge. And for good reason: culture may be a hard-to-define concept but its tangible benefits are clear. For example, an EY survey of FTSE 350 board directors found that 92% of respondents believe that investing in culture has improved their financial performance.
Can you estimate the financial value of your organisation’s reputation? Do you understand the advantages and disadvantages that flow from it? Do you understand how much reputational damage the organisation is prepared to risk, and how much it could comfortably survive?
The change to the discount rate announced by the Lord Chancellor – and the subsequent volte face and announcement of another review – wiped millions off insurers’ balance sheets, is likely to result in a hike in reinsurance rates and has created an expectation of premium rises for higher risk business. Even risk management body Airmic, not traditionally the first to jump to insurers’ defence, chipped in that this was a sorry state of affairs.
UKCloud has announced the launch a self-service replication and recovery solution powered by software provider, Zerto. Disaster Recovery to the Cloud is based on a pay-as-you-use cloud model; organisations can select applications that are crucial for the provision of public services, and therefore only pay for the disaster recovery or business continuity that is needed.
A strategic alliance has been formed between RQA and Security Exchange to provide consultancy support to product recall underwriters, brokers and their insured clients. RQA president, Lawrence Platt said, “We are pleased to be working with Security Exchange in this highly specialised field. Their services will add a whole new dimension to our own insurance market offering, enabling us together to provide clients with a truly comprehensive risk management portfolio on a global basis”.
The risk of human rights tainted tungsten, tin, tantalum and gold (3TG) entering the supply chains of tech firms is extending well beyond the traditional home of ‘conflict minerals,’ DR Congo and the Great Lakes Region of Africa, according to research from global risk consultancy Verisk Maplecroft. The company’s newly released Commodity Risk Service reveals that workers involved in the mining of 3TG, which are vital to the production of smartphones and computers, are exposed to a range of human rights abuses in many of the world’s biggest producing countries. Crucially, many of the risks posed by 3TG minerals outside of DR Congo and its neighbouring countries are overlooked by many companies, despite the fact their supply chains could be linked to armed groups and serious social and environmental impacts.
Airmic has announced the appointment of John Ludlow as chief executive of the association. Ludlow has over 15 years’ experience in senior risk management positions and has been a director of Airmic since 2012, including a year as senior deputy chair.
Clive Clarke, Airmic’s chairman, commented: “We are delighted to welcome John as the next chief executive. John has a fantastic record as a risk professional and is extremely well-regarded within the risk management community. Having worked closely with Airmic for years, he not only understands the needs of our members, but also has the experience and vision to continue the excellent progress made under John Hurrell’s pioneering leadership.”
BSI has published the second draft of ISO 45001 Occupational health and safety management systems – Requirements. The yet-to-be launched international standard specifies requirements for an occupational health and safety (OH&S) management system, with guidance for its use, to enable an organisation to provide safe and healthy working conditions for the prevention of work-related injury and ill health.
Verisk Analytics’ Property Claim Services has launched its first solution outside the P/C sector. The new loss aggregation service provides industry loss estimates for ocean marine and offshore energy events likely to exceed U$250m worldwide.
MetricStream has announced the release of its M7 platform and apps. The new platform and apps are designed to support GRC through enhanced mobility and layering, and sophisticated reporting and analytics. The MetricStream M7 Platform supports dozens of apps and solutions for risk management, compliance, audit, IT security, third party management, and other GRC professionals.
Willis Towers Watson has launched a cyber insurance solution specifically tailored to cover exposure across the global airline industry. Failure of critical IT systems is the most significant risk facing the global aviation industry.
The 2016 Riot Compensation Act takes effect this week -- good news for insurers, according to international law firm Clyde & Co. Repealing the 130 year old Riot (Damages) Act, it creates a new scheme that allows compensation to be claimed from local police authorities for property that is damaged, destroyed or stolen in the course of a riot.
Credit and political risk MGA, Anvil One has signed a partnership with AXA Corporate Solutions that will allow Anvil with AXA to underwrite credit and contract frustration risks, both trade and non-trade, as well as political risks.
Modern corporate liability exposures can arise from a growing number of sources and have the potential to result in larger and more complex losses for businesses than ever before. Plus, some rather unusual claims…
Lloyd’s of London has announced a profit of £2.1bn for 2016 despite the combined ratio moving from 90.0% to 97.9%. Conditions over the course of the year were extremely challenging with continued downwards pressure on pricing whilst traditional and alternative capital remained attracted to the insurance industry.
AIG has entered into a partnership with UK software technology provider VUEcloud, to offer customers a cloud-based motor fleet application. The new service enables policy holders to upload files directly to the cloud, such as photos and video footage from any internet enabled device including smartphones, laptops and dashcams.
The shortlist for the 2017 Business Continuity Awards has been announced.
Now in their 19th year, the Business Continuity Awards recognise those business continuity, security, resilience and risk professionals whose innovative strategies and industry savvy make them stand out above the rest, organised by CIR Magazine.
The winners will be announced at a Gala Dinner on 8 June 2017 at the London Marriott Hotel Grosvenor Square.
After months of uncertainty, Brexit has begun in earnest. The triggering of Article 50 started a two-year negotiation period, during which the UK will agree terms of its separation and future trade access with the EU. The commencement of negotiations does not, however, mean an end to the uncertainty. While negotiations for divorce may have begun, they are likely to be difficult and the timetable pressured. This could manifest on the insurance industry in a number of ways, and insurers, reinsurers and brokers are putting contingency plans in place in the event that a trade deal with the EU is not finalised at the end of the two year period.
Findings released today by the International Renewable Energy Agency (IRENA) show that energy-related carbon dioxide (CO2) emissions could be cut by 70 per cent by 2050 and completely eradicated by 2060 – and with a positive economic benefit. Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy Transition, presents a scenario in which increased use of renewable energy and energy could achieve the emissions reductions required to limit temperature rises to two degrees, avoiding the worst of climate change.
THB, CNA Hardy and cyber security specialist Waterfall Security Solutions have entered into a partnership to provide a new cyber security protection package for industrial businesses.
Violent political events are up dramatically over the last year with one in four global organisations feeling the impact, according to the latest edition of the 2017 Clements Worldwide Risk Index (CWRI), released this week in Washington. The survey, compiled twice each year, found the number of organisations suffering the effects of a political violence event nearly doubled from a year ago, up 90% over the previous report issued last spring.
Organisations considering stand-alone cyber coverage should carefully evaluate their risk profile and determine whether more traditional policies provide adequate coverage according to some of the tips offered in a newly released RIMS Professional Report 'Cyber Insurance: Considerations for Businesses'.
A fire at a high voltage electrical substation left 45,000 properties in Leicester without power this week. The blaze at the substation in Leicester forced businesses to evacuate and roads to be closed. A high-risk asset, if damaged, transformers pose a serious threat to life, property and the environment. Yet the play a critical role in delivering energy efficiently and safely across networks.
Major global brands have pulled hundreds of millions in advertising spend from Google-owned YouTube following a scandal that has emerged over inappropriate content.
More than 250 organisations including the UK government, Johnson & Johnson, Verizon, Toyota, Tesco and McDonald’s and media including the Guardian and The Times -- which broke the news -- are among the growing number of customers angered by the activities of the internet giant which saw advertising placed next to extremist material, and the groups responsible receiving payouts from them.
The Metropolitan Police have detained at least eight suspects following counterterrorism raids in London and Birmingham, in connection with the attack in Westminster this week in which three people, plus the assailant, were killed.
A man was shot by armed police this afternoon outside the Houses of Parliament in central London after a police officer was attacked with a knife outside Parliament. The incident took place following reports of a number of people being hit by a car on Westminster Bridge. Police are asking people to avoid: Parliament Square; Whitehall; Westminster Bridge; Lambeth Bridge; Victoria Street up to the junction with Broadway and the Victoria Embankment up to Embankment tube. This is to allow the emergency services to deal with the ongoing incident.
JLT Re has joined forces with flood modelling firm, KatRisk, to provide flood risk modeling capabilities across Canada. KatRisk's suite of flood risk modelling tools includes both flood inundation maps at multiple return periods and software to generate location level probabilistic flood losses.
Brands such as Dyson, Aston Martin and Lego have topped the rankings for reputation among the UK general public, in a year that corporate governance – and the perceptions of fairness, ethics and transparency – have had a significant impact on company reputation. Some of the results may surprise our readers.
The insurance profession needs to prepare for the impact that increased levels of onshore fracking could have on UK households and businesses, according to a thought-leadership report from the Chartered Insurance Institute’s Claims Faculty New Generation Group. The group found that while existing products appear to provide adequate cover for households and small businesses, and no insurer specifically excludes fracking, there are no insurance policies that specifically cover it either.
RSA has expanded its SME book with the launch of an e-traded Business Combined product. Available via RSA Online and the Acturis platform, the new product comes with a range of features to enable brokers to tailor cover for business customers across a range of risks and sectors including manufacturing, wholesaling, supplying, retail, administration and leisure.
A report from the National Crime Agency and National Cyber Security Centre this week revealed the growing impact of ransomware attacks directed at businesses and households. The use of ransomware has increased dramatically in the last two years and this trend is continuing. Considering the implications for both consumers and businesses, Tim Smith, partner and head of technology and cyber at insurance law and risk firm BLM, said that with an average of four internet-connected devices per person, it was only a matter of time before cyber criminals looked to take advantage of such devices.
Guidewire’s claims management system, Guidewire ClaimCenter, has passed market acceptance testing for the London Market Electronic Claims File Write-Back (ECF). The new Write-Back functionality is designed to provide London Market businesses with greater flexibility when managing and handling claims. It removes duplication and inefficiencies by offering enriched claims data, transparency and management information while giving near real-time claim notifications.
The Stochastic modelling of liability accumulation risk report published by Lloyd’s and Arium marks a valuable milestone in the development of solutions to model and quantify casualty downside risk, according to Willis Re. The methodology is the culmination of a three-year project between Lloyd’s and Arium to improve insurers’ understanding of liability risk exposure.
A commercial vessel, thought to be an oil freighter, has been hijacked by suspected Somalia-based pirates in the Indian Ocean. According to reports from Red24. the vessel, with eight crew members, has been taken to the Alula area of Puntland.
The winners were announced last night by host, Holly Walsh at the 4th annual Commercial Insurance Awards gala at the Millennium Hotel, London Mayfair. Over 200 guests attended the ceremony to celebrate industry achievements of the past year. Congratulations to all of the winners and we look forward to another spectacular event in 2018!
Markel has launched a surety offering, following the appointment Damian Manning to head up the new team and David Chandler as senior underwriter.
The business will initially focus on the UK, Ireland and Continental Europe with the intention to expand to other regions outside North America.
AIG has today announced plans to locate an insurance company in Luxembourg to ensure continued smooth operation of its business across the European Economic Area and Switzerland once the UK leaves the European Union. From 2019, AIG will have two AIG subsidiary insurance companies in Europe – one in the UK to write UK business and one in Luxembourg to write EEA and Swiss business, which will have branches across the EEA and Switzerland. AIG currently writes business in Europe from a single insurance company based in the UK, AIG Europe Limited, which has branches across the EEA and Switzerland.
Willis Towers Watson has released an updated version of its Radar pricing software. Radar 3.0 features new analytical techniques, now implementing a wider range of machine learning models. Processing speed is also up to five times faster.
CFC Underwriting has launched a cyber incident response app, designed to allow policyholders to notify a claim and receive specialist support from its global cyber incident response team within minutes. The app also provides global cyber news and can be configured such that excess insurers and other members of the policyholder’s incident response team are notified at the same time.
Law firm Eversheds Sutherland has launched two e-learning modules, developed to train businesses to understand and manage their risks related to modern slavery. Thought to be among the first interactive tools launched to educate employees on modern slavery, the solution is designed to help staff better recognise what modern slavery is and help with compulsory reporting relating to how they are tackling it.
This new reporting duty applies to commercial organisations carrying on business in the UK, with a turnover of over £36m and supplying goods or services, many of which will be required to publish their first statement by June this year.
PwC has created a working blockchain prototype for the London Market Target Operating Model (TOM) Innovation Exchange. The project is aimed at exploring the degree to which blockchain technology can reduce costs and speed up the payment process in the specialist insurance market.
CFC has increased the available limits of its transaction liability insurance product suite across all territories, and now has the capacity to offer limits up to £30m in the UK and €35m in eurozone countries. Transaction liability practice leader, Matthew Giddings, said transaction liability insurance continues to gain traction with an increasing proportion of M&A deals using this type of cover as both a risk management and deal facilitation tool.
FM Global has developed a new design for automatic fire sprinkler protection, with enhanced sensitivity to thermal radiation from flames and suitable for applications including spaces where sprinkler protection is required beneath grated mezzanines, and special fire hazards such as covered open yard storage.
Pool Re has increased its commercial reinsurance cover to £2bn, an increase on its previous limit of £1.95bn. The two-layer programme, brokered by Guy Carpenter and placed with a stable and secure panel of reinsurance companies (which includes Members of Pool Re as well as global reinsurers) led by Munich Re, mirrors the cover currently provided to Pool Re members and includes chemical, biological, radioactive and nuclear terrorism risk.
While many organisations continue to focus on the technology aspect of cyber defence, which is crucial, it is people risks which represent the largest source of data breach claims. According to Willis Towers Watson, businesses must focus more on employees and company culture in efforts to manage cyber risk. Their own claim data show that employee negligence or malicious acts account for two-thirds (66%) of cyber breaches, where by contrast only 18% were directly driven by an external threat, and cyber extortion accounted for just 2%.
Markel UK has extended the cover on its charities and community group’s product to cater to a wider range of organisations, including those with incomes of up to £1m, providing sector-specific insurance for small charities and community groups on modest budgets. The new policy includes such specialist risks as damages arising from abuse.
Companies operating in China are being urged to familiarise themselves with a new cyber security law that takes effect in June 2017. The new rules, designed to tighten state control over information flows and technology equipment, means foreign companies doing business in China will be required to localise any data that may contain sensitive privacy data or state secrets. The penalty for not doing so can result in fines for organisations or civil and criminal penalties including imprisonment or death penalty for individuals.
A risk and safety consultancy that provides services to safety critical industries has been awarded an R&D grant worth almost £70,000 which will be used by the company to help improve the safety and operations of civil nuclear power plants. Using the grant, UK-based Corporate Risk Associates (CRA) will be conducting a research project aimed at enhancing the industry’s understanding of potential system failures in nuclear power plants, aiding both plant safety and the uninterrupted supply of electricity.
Airmic has expressed concern over the impact on commercial policyholders of the reduction in the Ogden rate announced by the Ministry of Justice (MoJ) this week. Deputy CEO Julia Graham said the association supports the need for the discount rate to reflect a fair compensation system, but that it is “deeply concerned about the timing and scale of the change” and the impact on businesses. “Not only has the industry not been appropriately consulted, the decision is based on a formula in desperate need of reform,” she said.
Dow Jones Risk and Compliance has completed its acquisition of RiskAverter from US-based Compliance Strategies International. The RiskAverter product will be fully integrated within Dow Jones’s workflow application, providing a solution that enables user companies to automate risk scoring to more effectively assess third parties in relation to anti-corruption and other regulatory compliance risk areas.
The insurance industry could face asset-stranding and liabilities on a global scale as a result of climate change, according to a new report published today by Lloyd’s. The study, carried out in partnership with the University of Oxford Smith School of Enterprise and the Environment, looked at the impact of climate change-related regulation and taxation policies and how they could create stranded assets, or assets that are subject to a sudden or unexpected write-down or devaluation. The report found this to be especially relevant for insurers and reinsurers exposed to vulnerable carbon-based assets and liabilities in the energy, commercial property and shipping sectors.
With Article 50 due to be triggered by the end of March, UK brokers remain resilient despite initial post-Brexit uncertainty, according to the findings of the Q4 Broker Pulse survey from insurance and risk law firm BLM. Of those questioned, 97% said that they had not seen a drop in appetite for UK insurance products since the EU referendum vote last June. This was the key finding from the most recent Broker Pulse, a quarterly poll which questions UK brokers on issues affecting their community.
Cyber attack is once again the top threat perceived by businesses, according to research published this week by the Business Continuity Institute (BCI) in association with BSI (British Standards Institution). Eighty eight per cent of organisations are concerned about the possibility of a cyber attack. The threat of a data breach follows (81%), while unplanned IT and telecom outage remains third greatest concern (80%).
Cyber risk security controls that meet international standards like CSC20 might not be fit for purpose. This is one of the findings of a white paper produced by the University of Oxford and Novae Group. Academics, led by Professor Sadie Creese, at Oxford’s Department of Computer Science and the Saïd Business School found that the standards set by international bodies are often not backed up by objective, empirical research, and so cannot be shown to have quantifiable benefits. This shortfall weakens the value of compliance to risk control standards because a compliant organisation may not be protected from cyber-related harm.
Willis Towers Watson has entered into exclusive negotiations to acquire French aviation brokerage, OAAGC. Paris-based OAAGC (Office d’Assurances Aériennes G. de Cugnac) was founded in 1898 and its team of 16 is dedicated to aviation insurance solutions. OAAGC and its team have a long-standing relationship with Willis Towers Watson.
Nearly 200,000 people were evacuated in northern California this week after the Lake Oroville reservoir reached full capacity and dam operators discovered damage in the dam’s infrastructure. The substantial water level was caused by tremendous rainfall from a series of recent storms. This resulted in the first use of the auxiliary spillway in the reservoir’s history. A report from Aon Benfield's Impact Forecasting team estimates the cost of repair to the spillways at up to US$200m.
The Financial Reporting Council (FRC) has announced a fundamental review of the UK Corporate Governance Code, taking on board its work on corporate culture and succession planning, and the Government’s Green Paper and the BEIS Select Committee inquiry. Responding to the Corporate Governance Reform Green Paper, linking executive remuneration with performance, extending the FRC’s enforcement powers and the importance of stakeholder views will all be underlined, and indeed the FRC is seeking input from a broad spectrum of stakeholders, including its own Stakeholder Advisory Panel on the review.
Underwriters increasingly need to ask searching questions about how businesses are responding to climate change, according to lawyers at Clyde & Co. The call comes on the back of the potential for a growing volume of litigation and disputes in which corporate boards are being held to account for alleged reporting, regulatory and fiduciary failures linked to climate change and the fossil fuel sector.
Negative media reports of operational losses suffered by banks and insurers can cause the market value of firms to fall by significantly more than the value of the reported loss, according to a UK university research paper. News articles that adopt a negative tone when reporting on loss events can have a reputational impact that further decreases the share price and increases default risk, the research suggests. In the case of a company’s share price, just a 10% “increase in negative tone” can lead to an additional loss in equity returns of 0.61% and an increase in Credit Default Swap spreads of 0.43 basis points. In addition, media reports that also mention a threat of litigation can lead to further equity losses of 0.21% and 0.48 basis points for a 10% increase in “litigious tone”.
The Institute of Risk Management has welcomed an announcement made by the Department for Culture, Media and Sport recently that it will be providing £20m for cyber security lessons in schools, which will be designed to fit around pupils' current courses and exams.
Disaster recovery provider Databarracks has launched a new initiative aimed at establishing a central source for calculating the true cost of IT downtime. The Cost of IT Downtime brings together academic research with case studies, as well as encouraging businesses to contribute to the project with their own experiences and methods of calculation.
Understanding, anticipating and properly responding to reservation of rights letters is integral to risk professionals’ ability to protect their organisations and realise the full value of insurance policies, according to a new RIMS report, 'A Risk Management Guide to Reservation of Rights'.
Last year saw insured loss estimates from major natural catastrophes reach US$39.5 billion -- the highest since the annual market losses of US$60bn in 2012, according to figures from Willis Re. The largest single insured loss came from the Kumamoto earthquake in Japan in April 2016 with losses exceeding US$4.8bn. Other notable events in 2016 included Canada’s Fort McMurray wildfire in May which caused insured losses of around US$3.5bn; Hurricane Matthew in early October resulted in the largest single insured loss in the United States at US$2.3bn; and the combined effects of Windstorms Elvira and Friedrike in Europe in the summer produced losses of approximately US$2.48bn.
Fire safety organisation, FPA is re-launching its insurer backed LPC Training offering. Courses will be aimed at those who manage or have the legal responsibility to maintain alarm, security and CCTV systems, as well as those supplying and installing those products.
Specialist lines underwriting agency CFC is expanding its presence in the UK medical malpractice insurance market. The new, Lloyd's backed product is a tailorable package suitable for a wide range of healthcare professionals and organisations including affinity groups or schemes and individual professionals
Deborah Ritchie speaks to DAC Beachcroft partner Sally Roff about what she thinks is the greatest change in sentencing enforcement since the Health and Safety at Work Act 1974
The deadline for entries for the 2017 Business Continuity Awards has been extended to 24th February. The winners will be announced on 8th June at the London Marriott Hotel Grosvenor Square. This year's host...
Arthur J. Gallagher has developed a bespoke policy aimed at transferring cyber risks
specific to the manufacturing industry. Backed by A-rated Lloyd’s capacity and led by Brit, Gallagher has developed a custom wording in conjunction with manufacturing trade bodies and global Fortune 500 companies to ensure cover most closely matches current and emerging exposures.
A number of themes are emerging that are likely to dominate the security landscape in 2017, among them the rise of a “virtual Caliphate”; the resilience of Al Qaeda and the development of CBRN expertise. These and other emerging terrorism risks have been outlined in a new report from Pool Re’s Terrorism Research and Analysis Centre.
RSA has introduced its new Global Risk Solutions (GRS) operating model. Effective immediately, GRS will consist of three units, with each head reporting to Hayley Robinson, GRS managing director. Led by Richard Turner, the Europe business will be responsible for Europe specialty lines, Europe & international marine, Dubai International Financial Centre and Scandinavia hull; Specialty & Wholesale will be led by Gareth Hilton and will cover London Market construction and engineering, renewable energy, marine and wholesale international P/C; and UK & Multinational, led by Gary Long, will covers the existing UK and multinational risk managed business including real estate.
The British Insurance Brokers’ Association (BIBA) has launched a new facility with Accelerate Underwriting that allows members to place non-standard and niche commercial insurance schemes business. In a change for the association, the agreement with Accelerate is not product specific, instead it provides a solution that allows brokers to create insurance schemes, or manage existing arrangements more efficiently.
Marsh has announced the availability of its new CyberShield cyber risk and data breach insurance policy. Aimed at medium-sized to large organisations, the new cover is available outside the US and can provide up to £500 million in cover.
While there is no one formula for designing a perfectly resilient organisation, there are many ways to build resilience capabilities; resilience is a function of an organisation’s ability to access and use resources when it needs them. This is the message from within this book’s pages; and while there are just 200 of them, each packs quite a punch.
This multi-contributor title has been written by a range of authors from across the US and the UK, with chapters from risk consultants, academics and associations. As such, Operational Risk Perspectives is precisely that – a range of different views and approaches to operational risk management. The result is a set of essays that will be of most use to the seasoned practitioner.
After nine years as chief executive of Airmic, the association has announced that John Hurrell is to step down. Hurrell became CEO in January 2008 following a career of almost 30 years at Marsh & McLennan. During his period in office, Airmic published several pieces of research, including Roads to Ruin and Roads to Resilience. Most notably, he was instrumental in working with the insurance market to achieve the Insurance Act 2015.
Research conducted by the British Standards Institution reveals the scale of the modern slavery issue facing UK businesses. Its 'Human Trafficking and Supply Chain Slavery Patterns Index’ suggests UK businesses are at particularly high risk of modern slavery. Russia, Slovakia, India and Pakistan, according to the Index, are all ‘severe risk’ source countries. Of the G7 nations, Italy is identified as a ‘high risk’ nation – partly due to the conflict in Syria. Greece and Turkey are additionally categorised as ‘high risk’ countries.
I read with interest an article by Institute for Fiscal Studies director, Paul Johnson in The Times this month, in which he referred to the essay by philosopher Isaiah Berlin, 'The Hedgehog and the Fox'. The basic premise is that people can be divided into two groups where foxes draw ideas and inspiration from multiple sources and are comfortable with ambiguity and a wide range of inputs; and hedgehogs see the world through a single lens and try to make sense of it by fitting events into this view or paradigm. Johnson was using the essay to draw parallels between Bank of England chief economist, Andrew Haldane’s recent comments on economists, and foxes.
Unisys has announced the launch of a new set of cyber resilience services to help plan for crises related to cyber attacks by simulating real-world threats and using them to develop effective avoidance and response policies and procedures.
The issue of consumer vulnerability has been brought into sharp focus in recent years and lots of industries and organisations have looked at the issue through their own particular lens. Insurance is one of those, and it is also one that could and should do more to help customers.
BP has published its annual Energy Outlook, which sees the move from fossil fuels to sustainable energy in the Western world being outpaced by the growth in demand from Asia. The company estimates that over the next 20 years the energy transition world’s economy will almost double in size, driven by fast-growing emerging economies, as more than two billion people are lifted from low incomes.
It is just over 12 months since Storm Desmond wrought havoc in many parts of the UK; an event that, according to the Centre for Ecology & Hydrology, ranked alongside the devastating flooding of March 1947 as the largest event of at least the last century. In responding to major emergencies like flooding, emergency services and local authorities play a crucial part in managing the immediate aftermath, supporting local people and businesses as well as restoring the public realm. Those organisations are well versed in having emergency plans for such circumstances and regularly test aspects of these plans to ensure they are robust. They are also under a duty to ensure that they have plans in place to respond to events that may affect their own services during an emergency.
AXA has announced a partnership with resource management advisor, SUEZ aimed at improving resilience of cities and territories against flood risks. The new joint offering, available globally, will provide communities and industries with analysis of vulnerability to any form of flooding (flash flood, marine submersion, rising groundwater level, rupture of hydraulic structures, overflowing); solutions to reduce vulnerability for locations and territories through business continuity plans, education and prevention; and tools for awareness and assistance in crisis management (alert tools, material and human means, and so on).
As risk professionals, we spend a lot of time considering the new and emerging risks facing our organisations. But how often do we look closer to home? What about the risks facing our own profession? The UK risk management industry is in good health, with an excellent talent pool and growing status within organisations. But it could be failing to attract young people.
Aon Global Risk Consulting has launched a new modelling tool for oil, gas and petrochemical clients. The Aon Loss Estimating Risk Tool (ALERT), developed in collaboration with research agency, TNO the new tool has been designed to model the potential financial impact of a wide range of fire and explosion scenarios in the hydrocarbon processing industry.
A new study of senior financial executives has identified the top operational risks that have harmed their companies in the past five years. Sixty-six per cent of financial executives surveyed say their organisations have been harmed by equipment failure, nearly 60% say their firms have been impaired by data breaches or cyber attacks, and more than half (52%) have had their operations affected by natural disasters. Yet the majority (54%) say their organisations have not developed or tested formal loss-recovery plans.
The rise of ‘new professions’ and ‘hybrid businesses’ and their need for tailored Professional Indemnity (PI) insurance. This is among the major trends expected to influence the insurance market in 2017, according to the Annual Insurance Review by law firm RPC.
An ambitious £3.5m hardware upgrade is being rolled out to business continuity customers of converged IT and communications provider Daisy Group. The major investment will equip all of its 13 nationwide work area recovery sites with 6,000 latest desktop computers from global hardware provider Hewlett Packard.
The British Insurance Brokers’ Association (BIBA) has called for the government to commit to no further increases to Insurance Premium Tax (IPT) and to negotiate for single market access in the EU exit. BIBA has also called for the Financial Conduct Authority (FCA) to prioritise cost-effective supervision following a 70% increase in regulation costs for small insurance brokers. The calls have been made in BIBA’s 2017 Manifesto ‘Enabling the Insurance Market’ which was launched in the Houses of Parliament.
Having lagged behind their financial services peers in adopting digital technologies due to regulations, reluctance and cost, an increasing number of insurers now regard investment in digitisation a priority. These are the conclusions of a survey conducted by Willis Towers Watson, which shows that almost three-quarters of insurers believe the insurance sector has failed to show leadership in digital innovation.
Globalisation and trade challenges highlighted by the US election and Brexit referendum usher in a year of heightened strategic uncertainty on both sides of the pond – difficult topics which have become impossible to avoid and, according to Control Risks’ CEO Richard Fenning, may even make 2017 “one of the most difficult years for business’ strategic decision making since the end of the Cold War”. Such high levels of complexity and uncertainty will force boards to undertake comprehensive reviews of their approaches to risk management. Risk professionals at the Institute of Risk Management (IRM) echo this sentiment, citing political risk among their chief concerns for the coming year.
Pardus has announced the launch of a contingency facility backed by Lloyd’s security (led by XL Catlin) and the recruitment of Wayne Paternoster. He joins the MGA with more than 20 years of underwriting experience and most recently was the divisional managing director of the specialty unit at Markel International in London. In addition to his role as contingency underwriter, Paternoster will be part of the executive management team overseeing Pardus’s underwriting activities.
Companies are increasingly worried about the unpredictable business environment where markets are volatile and political perils, such as protectionism or terrorism are on the rise. Other growing concerns are digital dilemmas arising from new technologies and cyber risks, as well as natural catastrophes. However, what continues to trouble them most, are losses from business interruption. These are the key findings of the 6th annual Allianz Risk Barometer analysing corporate risks globally.
Aon has launched a bespoke and proprietary three step solution designed to help organisations quantify the impact of Brexit risk exposures, and redesign risk management and risk financing structures. Brexit Navigator is supported by an interactive tool that presents scenario-based insights for each of the EU Four Freedoms: goods, capital, services and people, which help assess the impact of Brexit
The Met Office has warned of plummeting temperatures this week, with snowy conditions expected across the UK, bringing the issue of business resilience to the fore. Is your business prepared?
QBE has agreed a multi-year deal to license the RMS Cyber Accumulation Management System, supporting the insurers growing cyber business. The limited historical precedent for this peril makes it particularly challenging for insurers to set their capacity levels. Without the valuable insights into the extreme, but plausible, cyber events, many insurers have to assume a conservative view of risk as they are unable to set the Probable Maximum Loss for cyber catastrophes. This can limit growth of this potentially profitable line of business, as well as the efficient management of a firm’s capital.
The Lloyd’s Market Association has welcomed the proposed reforms put forward in the Ministry of Justice’s consultation document ‘Reforming the Soft Tissue Injury (Whiplash) Claims Process’. Consultation closes today, 6 January.
Figures gathered by specialist lines underwriting agency, CFC Underwriting, suggest that the fear factor was behind the growth in the cyber insurance market in 2016. Cyber insurance is the fastest growing line of cover in the world – the total written premium globally today is estimated at US$2.5bn, and Allianz estimates it will reach US$20bn by 2025.
Political risk, cyber security, bribery and oil price and financial markets fluctuations are among chief concerns for businesses voiced by some of the UK’s leading risk experts as they look ahead to 2017.
The Lloyd’s Market Association (LMA) has published a new guide on catastrophe modelling in response to the increasing use and complexity of today’s cat models. The new guide focuses on uncertainty in catastrophe modelling and is aimed at anyone who relies upon cat models but does not have a detailed understanding of the uncertainty contained within them.
Congratulations to all of this year's Commercial Insurance Awards finalists! Now in its fourth year, these Awards are unique in rewarding commercial insurance endeavours. This year’s winners will be announced at a black tie awards gala dinner and ceremony at the Millennium Hotel, Mayfair London on 9th March 2017. Early table booking is advised.
The International Underwriting Association says despite current and emerging challenges, there is much to be optimistic about for the coming year. Identifying five key priorities for the London company market in 2017, the IUA has put Brexit, central claims processing and technology all on the agenda.
A new set of industry standards has been released to provide critical risk mitigation directives and support to underwriters writing marine risk in polar waters following the introduction this month of the new Polar Code, a code of practice for ships operating in the Arctic and Antarctic, which came into force on 1 January 2017.
The British Insurance Brokers’ Association (BIBA) launched a new free-to-use online facility for its members that will help with their due diligence when considering whether to use unrated non-life insurers.
One year on from storm Eva, the British Insurance Brokers’ Association (BIBA) is set to meet businesses affected by last year’s floods in Cumbria to discuss the lesson learned, resilience and resistance measures and outline a new insurance product that could help protect against future storms.
Brand and reputation risk protection is something that major companies and organisations are – or should be – all over; but for many small and medium sized enterprises that is just not the case. But failure to address this could have a much wider knock-on impact both up and down complex supply chains.
The underlying strengths of the UK’s labour market will see jobs growth continue into 2017, according to the latest CBI figures. The annual survey – in its nineteenth year, with 353 respondents employing nearly 1.2 million people -- found that four in ten (41%) firms across the UK will grow their workforce in the year ahead. For the fourth year running, the survey shows that growth in permanent job opportunities will outstrip temporary recruitment.
At least 12 people have been killed and 48 others wounded after a lorry was driven into a crowd at a Christmas market in Berlin, Germany last night. The German authorities are investigating whether there’s any link to terrorism.
Underwriting confidence in the London Market continues to decline, according to PwC's latest review of market conditions for 2017. As insurers approach the 1 January 2017 renewal season, PwC anticipates premium rate reductions in 2017 will be lower than actual rate reductions in 2016; these, in turn, were lower than 2015 rate reductions, indicating increasing resistance from London Market insurers to falling prices.
Just over a month since Yahoo revealed that information associated with at least 500 million user accounts was stolen in 2014, the Internet giant has admitted that hackers had successfully intruded its systems and compromised more than one billion user accounts one year before, in 2013.
It is clear from the Chancellor’s Autumn Statement 2016 that there will continue to be pressure on public sector budgets. This was recognised in the Local Government Association’s response to the Autumn Statement which said that: “Many councils are faced with difficult decisions about which services are scaled back or stopped altogether.” These are challenging and uncertain times for the public sector.
Challenges to globalisation and free trade highlighted by the US election and Brexit referendum usher in year of heightened strategic uncertainty for business. The distinction for businesses between perceived safe domestic markets and foreign ones rife with challenges has become marginal as risks increasingly come home through political, cyber and terrorism threats.
As mobility evolves and more organisations see talent moving internationally, many businesses are facing a growing challenge to understand where in the world their people are working and what they are doing, with potential significant implications for their tax affairs and exposure to reputational risk, according to a survey by PwC.
Poultry keepers across much of the UK have been told to keep their birds inside to protect them from a highly-infectious strain of avian flu in Europe. The UK’s Chief Veterinary Officer and the Scottish and Welsh Governments announced Avian Influenza Prevention Zones for England, Scotland and Wales to help protect poultry from the highly pathogenic strain of Avian Influenza (H5N8) currently circulating in mainland Europe. All zones across Great Britain will remain in place for 30 days and during that time keepers of poultry and other captive birds will be required to keep their birds indoors, or take appropriate steps to keep them separate from wild birds.
The ‘protection gap’ is widening and a key role of the insurance industry is under threat as climate-related catastrophes worsen according to two reports published by ClimateWise, a network of 29 insurance industry bodies convened by the Institute for Sustainability Leadership at the University of Cambridge.
A new international network of insurance regulators and supervisors has been launched to promote cooperation on critical sustainable insurance challenges, such as climate change.
Held in San Francisco, the first meeting of the Sustainable Insurance Forum included insurance supervisors and regulators from Brazil, California, France, Ghana, Jamaica, Morocco, the Netherlands, Singapore and the UK, as well as the International Association of Insurance Supervisors.
Up to US$906 billion in company turnover depends on commodities that drive the majority of tropical deforestation globally according to a report by the Carbon Disclosure Project (CDP).
Some of the world’s largest companies - including Colgate Palmolive, L'Oréal, McDonald’s Corporation and Marks & Spencer - report in the study that, on average, nearly a quarter (24%) of their revenues depend upon four deforestation-linked commodities: cattle products; palm oil; soy; and timber products. As much as US$906 billion in annual turnover could be at risk according to the CDP report which highlights how vulnerable companies are to deforestation risks.
James McAlister has formally taken over as chairman of the Business Continuity Institute, replacing David James-Brown whose two year term in office has come to an end.
A former police officer with over 30 years of experience in business continuity, civil protection, emergency planning, security, firearms, public order and training, McAlister has advised and contributed to many operations and exercises throughout the UK and internationally including political party conferences, major sporting events,
A new survey by software firm ClusterSeven, warns that despite End User Computing (EUC) risk being widely recognised by organisations in the UK, only a small minority of businesses are even imposing manual control policies to mitigate the potential threats.
The report, entitled ‘The Spreadsheet is Here to Stay’, suggests that EUCs are one of the key contributors of financial, regulatory, operational and reputational risk.
A report by commercial insurer RSA has found that Brexit is not perceived as a risk by the majority of SMEs, with 70 per cent stating that leaving the EU will either have no impact at all (43 per cent) or will have a positive effect on their business (27 per cent). However, SMEs identified a range of more significant threats which many companies are not sufficiently protected against.
The British Insurance Brokers’ Association (BIBA) has announced the launch of a new commercial insurance scheme for businesses that will also include flood cover for many commercial premises located in areas at risk from flooding.
“People are a problem.” Or so said Douglas Adams in his comic novel The Restaurant at the End of the Universe. As is often the case, the funny is also the insightful, and when it comes to cyber security people really are very much a problem. In their new book, The Weakest Link, Jeremy Swinfen-Green and Paul Dorey explore the issues of employees’ behaviours around cyber risk. The results make for far from reassuring reading.
Weak political institutions, widespread drug trafficking and ineffective police and security forces see conflict stricken Afghanistan topping Verisk Maplecroft’s latest Criminality Index. However, as home to six of the 13 countries rated ‘extreme risk,’ Latin America ranks as the world’s highest risk region, ahead of South Asia and West Africa. Guatemala, Mexico, Honduras, Venezuela, El Salvador and Colombia all feature in the ‘extreme risk’ category of the index. A further five, including Brazil and Argentina, are categorised as ‘high risk.’
In recent years, the risk community has been calling for risk managers to have greater access to key decision making in their businesses – in other words having a voice at the top table. We are therefore delighted to see a growing band of evidence showing that the message is getting through. In a survey conducted by the Federation of European Risk Management Associations (FERMA) this summer, two thirds of the 634 respondents said they now report to board or top management level.
After a period of growth and stability, the financial crisis seemed a spectacular and unique mistake... With this book, author Michael Grimwade suggests that not only were the operational risk losses unexceptional, but that they could easily be repeated.
New risks including rising regulator and shareholder activism and the influence of third party litigation funders are putting corporate leaders under more pressure than ever of falling foul of investigations, fines or prosecution over alleged wrongdoing.
The last decade has been rich in financial scandals in both banks and multinationals alike; the rigging of LIBOR, the missale of financial products, the facilitation of tax evasion, to name but a few. Despite their range, these scandals oft en have three common features; they have persisted for many years; the scandals often, but not always, span a number of firms across an industry; and they typically involve the active participation of more than the odd rogue employee.
While headlines are dominated by major data breaches and, more recently, by DDoS attacks, it is encryption ransomware and cyber extortion that accounting for the largest portion of the cyber claims received by AIG Europe across the EMEA region. According to data just released by the insurer, these accounted for 16% of cyber claims received during the period, with a further 4% of claims relating to other cyber extortions.
The 19th Annual Business Continuity Awards - Celebrating achievements in business continuity, security and resilience, are open for entries. The annual Business Continuity Awards is the most anticipated event in the business continuity calendar and provides unrivalled networking, alongside a night of entertainment and celebration.
Despite the apparent importance of online security, many consumers continue to make basic cyber security mistakes. Password hygiene is a continuing problem when shopping online, according to the 2016 Online Shopping survey from Centrify. Nearly 14% of respondents admitted that they share passwords with friends and family so they can login to their accounts, whilst over half said they save them to the retailer’s websites so as not to forget them. Over half also said that they only sometimes use different passwords for different retailers’ websites.
Lloyd’s has published a new study that supports the case that extreme weather events can be modelled as “independent” by global reinsurers when assessing many of their key aggregate risks around the world. The report, 'The Risk of Global Weather Teleconnections', carried out with the Met Office, analyses the links between extreme weather events occurring in separate regions of the world that can take place over a range of timescales from days to years.
Airmic has expressed its disappointment following the announcement of yet another rise in Insurance Premium Tax (IPT) announced by the chancellor in his Autumn Statement. IPT will increase from 10% to 12% from next June.
The UK regional marine market today sees the arrival of a new MGA. Leeds-based Fiducia has been officially launched and is backed by capacity from Hiscox and other Lloyd’s syndicates, with its initial focus on the regional cargo market via UK brokers.
The global economy is expected to grow moderately over the next two years, supporting continued growth in insurance premium volumes, according to analysis from Swiss Re. Its 'Global Insurance Review and Outlook for 2017/18' forecasts growth in global non-life premiums to fall slightly from 2.4% in 2016 in real terms to 2.2% in 2017, and accelerate to 3.0% in 2018. Meanwhile in the life sector, global premiums are expected to grow by 4.8% in 2017 and 4.2% in 2018. The emerging markets, in particular emerging Asia, will be the main driver of premium growth in both sectors.
Delivering his first Autumn Statement today, Chancellor Philip Hammond announced a 2pc rise in insurance premium tax to 12pc. Although the insurance industry has not welcomed today's announcement, it was not entirely out of the blue. Insurers have been predicting a trend of IPT ultimately aligning with the UK’s 20% VAT rate.
Specialist lines underwriting agency, CFC has announced the launch of its new K&R product. CFC policyholders will have the choice of expert risk management companies including S-RM and red24 through which they can also access training and support to help prevent a kidnap or ransom incident.
If you thought the last few years for local government and public services were tough, you’re in for some bad news. The really tough times may be yet to come. With the increasing devolution of funding from central government to local government; continuing cuts to government grants and the increasing reliance on local government income coming from business and council rates raised locally, you’d be forgiven for wondering just how the public sector is going to cope.
As the UK develops its economic role in the world outside of the EU, companies are planning to bolster spending on innovation to drive business growth, gain a competitive edge and ultimately, raise productivity. Last year business invested almost £21bn on innovation. The challenge for businesses is that while the UK innovation system has world-class attributes, it does not currently match their ambitions. Businesses rate the UK as 10th in the world for innovation.
For the second straight year, companies are reporting major challenges with incident response following a cyber incident. Seventy-five per cent of respondents to a study carried out by IBM and the Ponemon Institute admit they do not have a formal cyber security incident response plan that is applied consistently across the organisation. Of those with a plan in place, 52% have either not reviewed or updated the plan since it was put in place, or have no set plan for doing so. Additionally, 41% say the time to resolve a cyber incident has increased in the past 12 months, compared to only 31% who say it has decreased.
A disconnect exists between business continuity professionals and end users when it comes to workplace recovery, according to a report carried out by the Business Continuity Institute. The global study showed that, while only 12% of business continuity experts confirm their organisation lacks a workplace recovery arrangement, 31% of end users claimed their employers don’t have any arrangements in place, or they are unaware of what they are.
A global Ipsos MORI survey of more than one thousand business leaders found that 72% believed that travelling became more dangerous last year and more than half (57%) believe it will become even more perilous over the next twelve months. Hundreds of companies said that they had changed their employees’ travel itineraries over the last year due to new safety threats in countries, with Europe the region most associated with an increased risk for travel – even more so than in the Middle East.
Sword Active Risk has published the results of its annual survey of Risk Managers from 80 international organisations. The survey, which was completed during Sword Active Risk’s Global Risk Management Conference series (held in Chicago, London, Dubai and Sydney), shows a dramatic increase in political risk, emanating from the outcomes of the UK's Brexit vote and the US Presidential election.
Marsh has reached agreement with AXA to acquire Bluefin Insurance. Founded in 2008, Bluefin has approximately 1,500 staff in 45 locations around the UK, providing guidance on creating insurance solutions to over 150,000 businesses and individuals. In addition to insurance broking, it also operates a broker network and a managing general agent business.
A powerful M7.8 earthquake and several large aftershocks struck New Zealand’s South Island in the early morning hours of Monday local time, killing at least two people and injuring several others. The tremor caused widespread damage in the North Canterbury region of the South Island. However, shaking and varying levels of damage was additionally noted throughout the North Island, including the cities of Wellington and Auckland.
The digitisation megatrend is transforming consumer expectations across the globe, as internet and mobile phone usage increase year-on-year. The sheer pace and scale of this trend is forcing businesses to re-evaluate and adapt, and to engage with new ways of doing business to avoid lagging behind the curve.
The winners of this year’s Risk Management Awards were announced last night at a Gala Dinner hosted by comedian Mark Watson at the Millennium Hotel in London's Mayfair. With two awards each, the big winners were Scottish Water, Transport for London and the Post Office. More...
Today’s risk managers have a unique chance to raise the status of their profession, according to Julia Graham, deputy CEO of Airmic. Speaking at Airmic’s inaugural ERM Forum, a one-day conference dedicated to risk management, Graham said that business trends and regulatory trends are aligning to offer the perfect conditions for risk professionals to add value.
Uncertainty will dominate the first months following the election of Republican candidate Donald Trump as the next US president. Unlike his rival Hillary Clinton, Trump did not comprehensively outline his domestic and foreign policies. As a result, analysts are warning of uncertain times ahead.
The UK’s regulatory model must adapt to provide a smarter, more fit for purpose regulatory infrastructure to ensure the future competitiveness of the UK’s financial services industry in a post-Brexit landscape, according to a new CBI report. The business group recommends a series of changes for regulators to provide certainty and stability. New forms of regulatory dialogue are paramount to safeguarding competition, ensuring SMEs in the sector can compete with larger players.
One in three organisations has experienced cumulative losses of over €1 million during the last year as a result of supply chain disruption. This is according to a report published today by the Business Continuity Institute. Despite a decrease in the percentage of organisations that experienced at least one disruption (70% from 74%), those organisations suffered more of them, with the percentage of organisations that experienced at least eleven disruptions during the year increasing from 7% to 22%.
The majority of IT decision makers believe their employees regularly circumvent company security policies. Despite the fact that over half of those surveyed have invested in safeguards to protect their businesses against cyber threats in the past 12 months, careless employee behaviour could be leaving many organisations exposed to risks.
Tesco Bank today took the extreme measure of freezing all customer transactions after it was hacked and money taken from some 20,000 customers, with another 20,000 affected, though not currently found to be out of pocket. The activity is thought to have occurred over the weekend. Temporarily stopping online transactions from current accounts, Tesco Bank's chief executive, Benny Higgins said current account customers will still be able to use their cards for cash withdrawals, chip and pin payments, and all existing bill payments and direct debits will continue as normal.
Datto has announced the availability of a new ransomware protection and recovery offering designed to automatically detect attacks, notifying administrators to immediately rollback to healthy data. Designed to minimise downtime and reduce the impact to businesses, Datto says the new offering will provide small and medium sized businesses with an effective and reliable alternative to paying hackers’ ransoms.
Schneider Electric has expanded its cloud platform offering with the launch of Wonderware Online InStudio, an Infrastructure-as-a-Service offering designed to change the way end users provision, develop, test and maintain their HMI and SCADA applications.
The Institute of Risk Management has published a ten step template as part of its analysis of a sample of Longer-Term Viability Statements, which includes recommendations on how listed companies should structure their longer-term viability statements.
With less than a week to go until the US presidential election on 8 November, compliance professionals have had their say on its potential impact on the industry, with four in five compliance professionals seeing Donald Trump as the presidential candidate who poses the greater threat to the compliance profession. A third, meanwhile, cite the US election as one of the biggest risks to their business in the year ahead.
The UK government is to plough another £1.9bn into the country’s cyber defence strategy -- almost doubling the funding commitment it made in the first strategy was launched five years ago. The plans, announced by Chancellor Philip Hammond today, form a part of the government’s new National Cyber Security Strategy, which will set out a series of actions designed to protect the UK economy and privacy online.
The British Insurance Brokers Association (BIBA) has welcomed a property and flood resilience action plan, launched by DERFA. With the aim to promote and facilitate better uptake of resilience measures for properties at high risk of flood, the report was produced with input from five task groups. BIBA was part of Task Group 2, responsible for ‘embedding resilience in small businesses’. Chaired by Graham Brogden, Aviva head of technical property claims, the task group identified a number of key points to highlight to small businesses.
An M6.6 earthquake has occurred 125km north east of Italy's capital, Rome. The tremor was reported at 06:40 GMT and was followed by at least 200 aftershocks since then. Damage to infrastructure, power outages and some injuries were reported.
Twice as many CEOs and other senior executives have become actively involved in addressing modern slavery in global supply chains since the Modern Slavery Act came into force on 29 October 2015. According to a new piece of research, some 67% of CEOs and senior executives have received training on modern slavery in the past year. Investor interest has also increased as a driver for companies – from zero in 2015 to 25% in 2016.
The deadline for entries for the 4th annual Commercial Insurance Awards is fast approaching. The showcase for excellence within business insurance, the Commercial Insurance Awards, hosted by CIR Magazine, represents the pinnacle of best practice, a chance to learn from the best, a fantastic gala dinner, entertainment and the chance to network.
As a risk manager, one of my jobs is to minimise – though not always remove – the risk of surprise. But when the EU referendum result was announced, I began to wonder to what degree risk managers everywhere managed to achieve this. Generally, as risk managers, we have a good handle on the values, behaviours and culture that influence how decisions are made within our firms – we think we understand the ‘mood’ of the company. But this is just one of the areas where the UK’s vote to leave the EU resonated with me as a risk manager.
As communities across the Southeast US and the Caribbean count the cost of flood damage during Hurricane Matthew, a study, ‘Coastal Wetlands and Flood Damage Reduction’ has quantified how much protection natural coastal habitats provide during hurricanes. Using the latest modelling techniques scientists from the conservation, engineering and insurance sectors studied the impact of Hurricane Sandy in the Northeast US in 2012, when New York and New Jersey were badly hit by storm surges. The study found more than US$625m in property damages were prevented during this natural catastrophe by coastal wetlands along the Northeast coast. Without them the damage bill would be much higher for Sandy and other predicted hurricanes. Where wetlands remain, the average damage reduction from Sandy was greater than 10%. Experts within the study team expect that the analyses of the effects of Hurricane Matthew earlier this month will demonstrate similar protections.
After decades of debate, the Prime Minister has given the green light to expand the UK’s aviation capacity, which will come as an enormous relief to firms in every corner of the country, according to CBI president, Paul Drechsler. “A new runway at Heathrow is really fantastic news, especially as the country has waited nearly 50 years for this decision. It will create the air links that will do so much to drive jobs and unlock growth across the UK, allowing even more of our innovative, ambitious and internationally focused firms, from Bristol to Belfast, to take off and break into new markets," he said.
Hewlett Packard Enterprise is to collaborate with PTC to facilitate the availability of the Converged IoT Solutions, based on PTC ThingWorx software and HPE Edgeline Systems. The collaboration will focus on industrial use cases, incorporating PTC’s ThingWorx IoT platform technologies and HPE’s hardware and data services specifically designed for IoT edge computing and smart, connected solutions. This includes sensors, edge compute, real-time edge analytics, machine learning and augmented reality.
Research carried out by the Competition and Markets Authority suggests that a majority of UK businesses don’t fully understand the rules on unfair terms. Research for the CMA also revealed that some businesses think a signed contract is final, not realising that they can’t enforce a term against a consumer if it’s unfair. Others may copy terms from larger businesses or competitors, assuming incorrectly that these will be automatically fair and legally binding.
Improvements in the efficiency of reinsurance regulation are at risk of being undone if a covered agreement between Europe and the US is not reached, the International Underwriting Association (IUA) has warned. In recent years collateral requirements for international firms reinsuring US risks have been substantially reduced allowing capital to be deployed more effectively and reducing cost unnecessary pressures, but with the introduction of Solvency II difficulties have arisen with new rules affecting US firms that are not deemed to be subject to an equivalent regulatory regime. And it is possible that this could bring to a halt any further progress in further reducing US collateral barriers.
Augmented and virtual reality technologies are creating a new dimension of risk and insurers should do more to keep up with these developments and seize opportunities, according to a new report out today. AR and VR technologies are anticipated to generate potential losses to the value of US$20bn by 2020. Consumers will increasingly suffer accidents whilst playing AR games and companies will increasingly become responsible for securely storing ever more sensitive information, such as location data.
More than 550,000 small businesses in the UK have been forced to halt trading due to a disruption in the last two years, according to new research by small business insurer Direct Line for Business. The average small business reports that it would last around eight months and three weeks if it were forced to halt trading, with sole traders (nine months, one week) faring better than micro-businesses – businesses employing fewer than 10 people - (nine months) and small businesses (six months, two weeks).
Healthcare data management provider, BridgeHead Software has been accepted as a supplier on the latest version of the UK government’s public sector cloud procurement framework, G-Cloud 8. The company’s HealthStore Independent Clinical Archive (ICA) is listed under Software as a Service, while its Professional Services for Healthcare Data Management is categorised as Specialist Cloud Services on the Digital Marketplace.
Aon Benfield’s catastrophe model development team, has developed a new catastrophe model for Iceland to estimate the financial impact of earthquakes. Iceland is the most earthquake prone region in Northwest Europe, with the peril accounting for 83% of catastrophe losses in the country over the last 20 years. Recent major loss history, estimated at present day values, includes M6.5 earthquakes in 2000 causing ISK7.8bn (EUR53.2m) of insured loss and a M6.3 earthquake in 2008 resulting in with ISK13.8 billion (EUR92.4m) of insured damage.
Zurich Insurance has launched a supply chain insurance product targeted at customers based in Hong Kong and Singapore. Supply chain disruption is regularly cited as one of the top concerns among senior management and risk managers, and with Asia a major global manufacturing hub and home to some of the world’s largest producers and exporters, Zurich is the first insurer to offer a solution to this challenge in the APAC region, having provided similar cover in Europe and North America over the last six years.
Overall premium income for the London company market in 2015 was £21.645bn, a new report by the International Underwriting Association has revealed. Gross premium written in London totalled £15.150bn, while a further £6.495bn was identified as written in other locations, but overseen by London operations.
A £10 million resilience engineering programme has been announced by the Lloyd’s Register Foundation in partnership with global engineering and consultancy firm, Arup. Designed to help make infrastructure more resilient to shocks and stresses, the programme with see the team working with businesses, engineers and researchers to develop standards and build networks of learning and best practice across such sectors as energy, transport, food and water.
Arthur J. Gallagher has won a tender to provide exclusive risk management and insurance broking services to the University of Glasgow. Managing director of Gallagher’s UK Public Sector & Education Practice, Tim Devine, commented: “We are looking forward to working closely and collaboratively with the University team, to ensure they benefit from our extensive experience in the higher education sector, as well as gain quick access to Gallagher’s broader range of risk sector specialists, such as our clinical trials and crisis management teams, as challenges and solutions demand.”
The healthcare industry is steadily realising the value offered by big data solutions, particularly in research and medical record mining. This is according to a new report from Frost & Sullivan, which warns that current investments are focused on serving immediate needs of the investing stakeholders, which often makes them siloed and incrementally beneficial, as opposed to a strategic organisational redesign of the data strategy that provides exponential returns on investment.
Aon Risk Solutions has entered into an agreement to acquire New York-based risk management firm, Stroz Friedberg, a global risk consultancy with offices across the US, in London, Zurich, Dubai and Hong Kong. Financial terms were not disclosed and the acquisition is subject to customary closing conditions.
Awareness, increased availability and contractual mandates are just some of the reasons that have contributed to the significant increase in organisations purchasing standalone cyber insurance – up 29% in 2016 – as noted by the 2016 RIMS Cyber Survey.
Research shows that despite recent changes introduced to improve the way civil claims are handled, insurance claims within the construction industry have risen sharply compared to a similar research conducted in 2014.
Pool Re has announced the launch of the International Forum of Terrorism Risk Re/Insurance Pools (IFTRIP). The formation of IFTRIP is the culmination of a Pool Re led initiative, which began at last year’s inaugural Congress for National Terrorism Re/insurance Pools Congress, aimed at fostering closer ties and allowing for greater collaboration between the world’s terrorism re/insurance entities.
Utility companies, football clubs, train companies, television subscription providers and banks are deemed to be making an excessive or unfair profit from British. This is according to a YouGov poll released by Social Enterprise UK, showing that that two-thirds (67 per cent) of the British public think football clubs are profiteering at the expenses of consumers. They are followed closely by electricity, gas and water companies (61 per cent), and television subscription providers such as Sky, Virgin, BT and Talk Talk (61 per cent). Train companies are believed to be profiteering by 58 per cent of people, followed by banks (53 per cent).
The LMA and IUA have published updated editions of their main Guide to the Insurance Act 2015 and Quick Reference Guide for Underwriters, to include the late payment of insurance claims provisions now enacted as part of the Enterprise Act 2016.
Telecoms company TalkTalk has been issued with a record £400,000 fine by the ICO for security failings that allowed a cyber attacker to access customer data “with ease”. Investigators found that the cyber attack of October 2015 took advantage of technical weaknesses in TalkTalk’s systems. Some industry commentators say the fine is still relatively small, and is nothing compared to what can be expected under the forthcoming General Data Protection Regulation (GDPR).
Having impacted Haiti and Cuba, Hurricane Matthew is now progressing through the Bahamas. According to AIR Worldwide, Matthew is currently a Category 4 hurricane on the Saffir-Simpson Scale, and is expected to remain Category 4 as it nears the east coast of Florida. Schools and airports across the region have already closed, and some hospitals have been evacuated. Hundreds of flights in and out of Miami, Fort Lauderdale, and Orlando have been cancelled.
Organisations are concerned that they lack the relevant skills or talent to drive corporate resilience, despite the fact that they actively recruit dedicated resources to support the resilience agenda, with a good proportion investing in training and awareness. These are the suggestions of a Control Risks-commissioned study that set out to assess the degree to which resilience has become embedded organisationally.
FM Global has launched Cyber Optimal Recovery, an endorsement to its all-risk FM Global Advantage policy designed to maximise recovery from a cyber-related loss. Designed for clients that have, or intend to purchase a stand-alone cyber policy, the new Cyber Optimal Recovery endorsement gives the insured the option to choose whether the FM Global Advantage policy is primary, contributing or is in excess to a cyber policy.
The Internet of Things (IoT) and cloud computing have a direct influence on the engineering insurance risk landscape but are being underestimated by underwriters according to The International Association of Engineering Insurers (IMIA).
The increased security threat from cyber and data privacy breaches is the number one risk on the minds of executives in the transportation industry, according to a new report released today by Willis Towers Watson. Carried out to measure the industry’s current risk environment as perceived by 350 senior executives from the air, land and sea sectors, the report reveals a fluid risk landscape that is increasingly complex and interconnected.
Theresa May outlined on Sunday the timetable for starting Brexit negotiations. Article 50, she said, is to be triggered by the end of March 2017. Since the prime minister's announcement, sterling fell sharply to a three-year low against the euro, before recovering some ground -- bouyed by September's positive manufacturing sector results.
Tropical Storm Matthew, currently a category 4 hurricane and located over the central Caribbean Sea, is forecast to make landfall in Cuba in the next 48 hours. Hurricane warnings have been issued for Haiti, Jamaica, and eastern Cuba, which are expected to be significantly affected by the storm.
Moore Stephens Consulting and NTT Data UK have concluded an agreement to provide an international service set to underwriters and brokers in the London and global insurance markets.
The French regulator has announced measures to make it easier for UK companies looking to set up operations there in the wake of the Brexit vote. A number of UK companies are working on contingency plans in preparation for Article 50 being triggered, with Lloyd’s of London among the latest to make such an announcement.
The Financial Conduct Authority has published its third consultation paper on the implementation of the revised Markets in Financial Instruments Directive. MiFID II, which comes into effect on 3rd January 2018, updates and improves rules governing the way capital markets function, contributes to the reform of derivatives markets and strengthens transparency of trading.
While the role of the insurance chief risk officer has become more prominent, so far it has largely been shaped by regulation, but, according to a risk industry forum, there is a danger that if the role is too narrowly focused in this area then firms will miss out on the wider, more strategic risk leadership that a great CRO can provide.
AGCS has appointed FireEye to its panel of service providers, which has been set up to help businesses minimise data loss, business interruptions and reputational damage from a cyber event. AGCS clients now have access to FireEye technology, intelligence and expertise to eliminate the complexity and burden of cyber security for organisations.
UK businesses are thought to be lagging behind the rest of Europe when it comes to its preparedness for the European Court of Justice’s latest ruling on the Working Time Directive. Some, it would seem, are not even aware of the ruling.
After crossing Taiwan, the 17th typhoon of the year, and the third storm to impact Taiwan in two weeks has been downgraded to a tropical storm, currently moving west-southwestward and expected to bring further rain before gradually dissipating later this week.
The risks posed by cyber attacks and reputational damage are increasingly worrying small and medium-sized enterprises, according to Zurich Insurance Group’s third annual global SME survey. It found a greatly improved awareness of risk amongst organisations in this category, with over 90% of SMEs surveyed now saying they are aware of the risks facing their business.
Despite largely voting to remain in the EU, the Brexit vote has not dampened the short or long term confidence of UK CEOs. It has however raised a question mark over the UK’s ability to do business and, as a result, many as part of responsible contingency planning are considering relocating operations or headquarters, according to a survey conducted by KPMG of 100 UK CEOs.
Beazley has partnered with Mexico's GNP Seguros to manage data breaches for GNP’s new Cyber Safe product launched this week. Paul Bantick, technology, media and business services UK focus group leader at Beazley, said: “We’re excited to partner with GNP and offer companies in Mexico access to Beazley’s data breach response services through their new Cyber Safe product. GNP’s clients will benefit from Beazley’s extensive expertise managing and mitigating the impacts of data breaches for clients globally.”
Yahoo has revealed that information associated with at least 500 million user accounts was stolen in 2014 by, what is believed, a state-sponsored actor. The stolen data may include names, email addresses, telephone numbers, dates of birth and hashed passwords.
Industry body the Lloyd’s Market Association is calling for a renewed focus on improving risk engineering surveys to help reduce the risk of major losses across onshore oil, gas and petrochemical industries.
Business interruption is the leading cause of losses for companies, multinational organisations and NGOs that operate outside the US, according to a new survey by insurance broker Clements Worldwide. The Clements Worldwide Risk Index, released today, shows property damage and general liability as close second and third largest sources of financial losses.
FM Global has announced the formation of integrated engineering and underwriting units. “Cyber risk is a top tier business threat in almost every sector, and our focused, integrated engineering and underwriting cyber approach is designed to create a long-term competitive advantage for our policyholders,” said FM Global executive vice-president, Bret Ahnell. “Threats can come from malware, disgruntled employees, corporate espionage and yet unknown attack vectors. To ensure our clients remain resilient in the face of evolving cyber hazards, both technology and human threats must be understood and addressed, and these teams will help ensure our clients are protected.”
Drones or unmanned aircraft systems (UAS) have the potential to deliver a wide range of problem-solving technologies, with uses ranging from industrial inspections, aerial photography and border patrol to emergency deliveries and crop surveys. But drones also raise a number of new safety concerns, ranging from collisions and crashes to cyber attacks and terrorism. According to a new report from aviation insurer Allianz Global Corporate & Specialty (AGCS), systematic registration of unmanned aircraft and robust education and training of operators is necessary to ensure the safe operation of drones.
ISIL has claimed responsibility for a multiple-casualty stabbing attack that occurred in Minnesota, US at the weekend, when a man, reportedly entered a mall and started targeting individuals in the facility. At least nine people were wounded before the assailant was shot and killed by an off-duty police officer. The mall remained closed for the weekend and has reportedly opened as of 19 September. Despite the claim of responsibility, authorities still believe that the attack was carried out by a self-radicalised individual. Heightened security is expected to persist in the affected area as authorities remain on high alert.
The role of senior management in ensuring companies manage their risk successfully is of critical importance. Encouragingly, the Financial Reporting Council’s 2014 risk guidance stated that the board should take “ultimate responsibility for risk”. Its more recent document, ‘Corporate Culture and the Role of Boards’ published in July, states that senior executives should “get out of the boardroom” to understand how their firms are behaving
By looking forwards to potential risks, the insurance profession can not only bolster its, dare we say, poor reputation for innovation but also ensure it is acting in the public interest by not only providing protection but encouraging prevention. It is with this in mind that the CII Claims Faculty New Generation Group looked at the issue of fracking. The group reviewed the risks and associated perils that may arise from fracking activities and how any unforeseen incident could affect a variety of insurances; whether the insurance industry does provide appropriate cover; and if this could change in the future. They have focused their attention on risks related to explosion, earthquake, pollution, subsidence, riots and injury.
Despite increasing levels of boardroom ownership, many UK firms are still failing to estimate the financial impact of a cyber attack or assess their suppliers and customers for cyber risk, according to research from Marsh. Marsh’s 'UK Cyber Risk Survey Report 2016' found that board-level ownership of cyber risk among the UK businesses surveyed has increased from 19% in 2015 to 30% this year. Levels of understanding have also increased compared to 2015, with 83% of respondents saying they have a basic or complete understanding of their company’s cyber exposure, compared to 61% last year. IT departments remain responsible for the review and management of cyber risks in the majority (55%) of firms.
The strongest storm of this year and the most intense typhoon since Super Typhoon Haiyan struck the Philippines in 2013, Super Typhoon Meranti has led to the evacuation of 1,500 people, according to catastrophe modelling firm, AIR Worldwide, with rough seas and storm surge disabling a large number of boats, including a Kaohsiung freighter, which lost containers as it was swept away. Many vehicles, have been washed away in flooded streets. Upwards of 4,000 members of the military and police have been assigned to provide support for possible additional evacuations.
US airline Delta has admitted that the total cost of its recent five-hour IT outage, which saw over 2,000 flights either cancelled or delayed over a three-day period in August, came to some US$150m. This figure shows how much of an impact even a small amount of IT downtime can have on an organisation.
Reinsurance demand has increased over the past 18 months, with the cession ratio across the global property and casualty insurance industry registering a small rise for the first time in several years. This is according to an Aon Benfield report, which also suggests the trend will continue for the remainder of 2016.
RMS has released a new exposure analytics solution. Exposure Manager, the first solution to be released on the firm's RMS(one) platform. Developed to give re/insurers and brokers a clearer view of their risk accumulations to better manage volatility, the tool helps provide a consistent view of risk across the organisation.
An insurer panel including Hiscox, Beazley, Lockton, Talbot and XL Catlin, has launched new modular cover to address terrorism risks. Terrorism Crisis Solutions (TCS) allows insureds to choose from a range of covers, including sabotage and terrorism for both property damage and liability; financial protection when impacted by an insured event; threat of a malicious act, nuclear, chemical, biological, and radiological malicious acts; active assailant, active shooter, workplace violence and stalking threat as well as riots, strikes and civil commotion.
The Federation of European Risk Management Associations (FERMA) has launched a campaign to change misperceptions of captive insurance by tax authorities and other public bodies, starting with a position paper, published today. FERMA is to submit the paper to the OECD so that the views of European risk managers are considered when the OECD discusses the implementation of its Base Erosion and Profit Shifting (BEPS) measures with member governments.
Research into information management and security practices in the mid-market suggests that business leaders are the worst offenders when it comes to mismanaging sensitive business information. The findings also suggest facilities and office managers come a close second to CxOs in their data handling bad habits.
BAE Systems’ cyber division has teamed up with Allianz Global Corporate and Speciality (AGCS) to help its customers better defend and protect against the threats they face from cyber breach. The partnership sees BAE Systems join Allianz’s Incident Response panel, set up to help businesses minimise data loss and reputational damage from a cyber attack.
The global construction industry is at greatest risk of modern slavery, according to a new report by LexisNexis BIS, which analysed articles from more than 6,000 licensed news sources in more than 100 countries in Europe, the Middle East, North and South America, Africa and Asia between January 2015 and May 2016. It shows that throughout the global construction industry and its material supply chains, forced labour and other exploitation that constitutes modern slavery are common, concealed and subject to inadequate prevention, policing and prosecution.
This year’s Risk Management Awards host is celebrated comedian, Mark Watson. The Risk Management Awards winners will be announced at the highly anticipated gala dinner and ceremony on Thursday 10 November 2016 at the Millennium Hotel London Mayfair. The event was attended by over 250 guests in 2015 and this year is set to be bigger and better than ever. VIP packages are also available.
Florida’s near 11-year hurricane drought ended Friday morning when Hurricane Hermine made landfall near St. Marks, Florida, 23 miles south of Tallahassee. According to AIR Worldwide, the storm arrived as a Category 1 hurricane delivering maximum sustained winds of almost 80mph, a significant storm surge, and flooding rains.
Connectivity and the ethics around data processing, cyber-related business interruption, Brexit and regulatory developments – including the practical implications of the Insurance Act – are just some of the key risk areas highlighted by a report as concerns for the sector over the coming year.
Swiss Re Corporate Solutions has expanded its cyber offering with the launch of CyberSolutions Germany, a new, market-specific primary insurance product. The new solution provides tailored coverage to mid-sized and large companies, combining insurance protection with risk mitigation and remediation services.
Fitch Ratings completed its peer review of the four major European reinsurers in July, comparing and contrasting its views on the key credit factors of the four reinsurers, Hannover Re; Munich Re; SCOR and Swiss Re.
Several aftershocks of between M4.1 and M4.9 have been reported in central Italy since a major M6.2 earthquake struck near the town of Norcia on 24 August. Emergency operations in the worst-affected areas (Rieti province in Lazio region and Ascoli Piceno province in Marche region) are ongoing.
Underwriting profits for the global reinsurance sector declined in the first half of this year, while recent profitability for several companies fell to levels that could diminish their financial strength. While the industry still reported an overall profit, profit levels were lower than in the first half of 2015. This is according to a new global reinsurance mid-year 2016 report from Fitch Ratings.
Asian regulators are in the process of implementing a range of measures that would alter the operating and business climate in the region, which could increase the region’s appetite for reinsurance. Fitch Ratings believes that these recent initiatives could lead indirectly to greater demand for reinsurance, as direct insurers rethink risk management strategies and appetite.
Barely a third of employers in the UK fully understand the impact of their employee health issues. This is the conclusion of Aon's annual study of employee health across the EMEA region, which also claims that UK companies are less likely than their neighbours to have a defined health strategy.
Data captured by the Cargo Incident Notification System (CINS) indicates that some 27% of incidents in terms of detected causation were attributable to cargo being mis-declared, second only to poor packaging. UK P&I Club risk assessor David Nichol says it is imperative for the safety of the ship and crew that all necessary steps are taken to handle and stow dangerous goods in such a way that reduces the risk of an emergency incident.
Total economic losses from natural catastrophes and man-made disasters reached US$71bn in the first half of 2016. The global insurance industry covered a total of US$31bn, or 44%, of the total losses. Thunderstorms in the US and Europe were the costliest events for the insurance sector in the first half. Around 6 000 people lost their lives in natural catastrophes and man-made events in the first six months of the year, compared to12 000 in the first half of 2015.
The first two quarters of 2016 have seen over US$1bn in venture capital investment according to report carried out by KPMG and CB Insights.
VC investment into wider FinTech firms fell by almost 50% in Q2’16 but InsurTech stands out as it continued to attract significant attention.
Nearly one in three SMEs see developing an online presence as a key opportunity for their business in the year ahead, but only one in 10 perceive cyber attacks as a threat to that growth. These are the findings of a survey of over 1,000 UK SMEs, carried out by Aon Risk Solutions, in which 24% of respondents saw online presence as key to their business, but just 3% have cyber insurance.
NTT Security has announced the launch of its Cyber Security Innovation Programme, through which they will explore and test the evolving technology landscape, and examine how a range of the latest solutions can help organisations create sustainable and resilient cyber architectures.
The number of Periodic Payment Orders (PPOs) granted by UK courts in 2015 was similar to that of 2014, but substantially lower than the 2011 peak, according to Aon Benfield’s latest study of large losses in the UK motor insurance industry.
Extensive precipitation-induced flooding in southern Louisiana, from west of Baton Rouge to Mississippi, has resulted in six deaths, tens of thousands of rescues, and significant property damage. Reportedly thousands of homes, as well as farmland, highways, and commercial and industrial property, have suffered flood damage. Water continues to rise in some locales, and additional rain could initiate flash floods. States of emergency have been declared for Louisiana and impacted counties in Mississippi, and the president has designated parts of Louisiana as federal disaster areas.
ArgoGlobal has acquired the renewal rights for Allied World’s marine hull business in Asia. Chief operating officer of ArgoGlobal, David Lang, said: “I am very pleased that we have reached an agreement with Allied World to acquire the renewal rights for its marine hull business in Asia. Our Asian business has grown from strength to strength and is a central pillar in our long-term strategy. We have identified clear scope to continue to develop our offering in Singapore, both in marine and across our suite of specialist products, and this transaction is an important step in maintaining our growth trajectory.
Business standards company BSI has acquired Virginia-based Atrium Environmental Health and Safety Services, expanding its environmental health and safety services footprint in the US. Atrium provides a range of on-site and project based occupational safety, industrial hygiene and environmental compliance services to clients in the pharmaceutical, facilities management, government and shipbuilding sectors in the National Capital region (Virginia, Maryland and Washington DC).
The new regime for commercial insurance law comes into force today. Designed to increase professionalism in the placing of commercial insurance, the new Act aims to provide fairer outcomes for customers, and will also bring new considerations for brokers and businesses when arranging insurance
Policyholders, brokers and insurers are well prepared for the Insurance Act as the new law comes into force today, according to Airmic. A survey of its membership, conducted in the two weeks prior to the implementation date, revealed that over 90% of respondents feel fully prepared or relatively prepared for the law change.
Modern slavery constitutes a ‘high’ or ‘extreme risk’ in 115 countries, according to a new global ranking released by risk analytics company Verisk Maplecroft. The research concludes that Asian and African commodity producers and manufacturing countries pose the greatest challenge to companies navigating new legislation on supply chain disclosure. The EU as a whole is rated ‘medium risk’. The fact the region does not perform better is largely explained by the refugee crisis and the exploitation of foreign migrants and refugees.
Arthur J. Gallagher has won a tender to secure a three-year exclusive partnership with the London Universities Purchasing Consortium as its insurance broker. The deal sees the reappointment of Gallagher’s specialist UK Public Sector & Education practice, following a recent public procurement exercise, having worked with LUPC since 2012.
Beazley has launched new cover offering UK event organisers revenue protection for reduced ticket sales and concessions when a specified amount of rainfall occurs at their event. Sold in conjunction with an event cancellation policy, Beazley’s Cancellation Plus cover enables event organisers to recoup lost income for events in the United Kingdom that are not cancelled, but may suffer from reduced attendance or early attendee departures due to wet weather conditions
Crises Control has been listed on the latest government G-Cloud 8 framework. The G-Cloud 8 Service is operated from two distinct environments to provide government and public sector customers with choice and price flexibility, dependent upon their information assurance requirements.
Chubb has enhanced its insurance policy wording for companies producing television and other advertising commercials, as the creative industry sector continues to grow and its risks evolve. The enhanced wording is designed to meet the needs of commercial producers working to industry-standard Advertising Producer Association contracts in the UK and Ireland.
The global political risk and crisis management insurance market is expected to exceed US$10bn by 2018, according to a report from analysts at KPMG. The anticipated growth of US$2bn is a result, the consultancy says, of the challenging macroeconomic environment, recent terrorist attacks, growing cyber threats and global political uncertainties.
According to catastrophe modelling firm AIR Worldwide, a cat 1 hurricane made landfall southwest of Belize City, Belize, just after midnight local time on 4th August. The fifth named storm of the season, Hurricane Earl downed power lines, toppled trees, and caused coastal flooding as it moved through the Caribbean en route to the Yucatan Peninsula, prompting hurricane and tropical storm warnings throughout the region, before weakening across Belize, Guatemala, and into southern Mexico.
As the Olympic Games in Rio get underway today, the World Health Organisation reiterates the risks facing athletes and visitors to Brazil with regard to the current outbreak of Zika. Athletes and visitors will face risks similar to residents of Brazil. They are at risk of being infected with Zika if bitten by an infected mosquito...
A stabbing attack in central London last night left one person dead and six others wounded. The teenage suspect was apprehended shortly after the attack, the motivation for which is unclear, but not thought to be terror related. The incident follows yesterday's announcement of increased police presence on London's streets, as an additional 600 armed police were deployed in the capital.
The threat level remains unchanged.
The first parametric insurance programme against risks of natural disaster has been launched for farmers in China. The programme covers 28 counties across Heilongjiang province against flood, excessive rain, drought and low temperatures. With parametric insurance, satellite and weather data allow faster payouts than with traditional cover.
Commissioner Sir Bernard Hogan-Howe and the Mayor of London, Sadiq Khan have today announced the deployment of 600 additional firearms officers across the capital. The public will see more armed officers on proactive operations and targeted patrols, both on foot and in vehicles, across London, as part of counter-terrorism measures under Operation Hercules.
Civil unrest is significantly more disruptive to business in France than in any other western economy. These are the findings of Verisk Maplecroft’s latest index, which rates the country ‘high risk’ alongside emerging markets including Brazil and South Africa.
Aon Employee Benefits says employers insuring employee benefits need to be ready for the Insurance Act 2015, which comes into effect on 12th August 2016. The Act replaces law that has been in place since 1906 and applies to all non-consumer insurance policies that incept, vary or renew on or after 12th August 2016.
The ability of cyber criminals to sneak past even the most fortified defence systems has intensified the pressure on organisations to develop better threat detection capabilities. In response, Accenture and Endgame have launched a threat hunting as-a-service offering, to identify and remove adversaries that have evaded traditional security methods.
A report published by JLT Re shows how the falling cost of reinsurance has now typically made it a more efficient form of contingent capital when compared to equity, debt and carriers’ own capital. Falling demand has coincided with record levels of dedicated reinsurance capital. The result has been four years of falling reinsurance rates across most lines of business. Given the current market environment, JLT says now is the time for insurance carriers to compare weighted average costs of capital to the cost of reinsurance capital.
UK Prime Minister Theresa May has reiterated her commitment to fighting modern slavery, and in doing so has highlighted a continuing business risk for organisations of all kinds, and particularly those with complex supply chains. Under the terms of the Modern Slavery Act, UK businesses with a turnover of £36m or more, are now required to make an annual statement, setting out the steps they have taken to stamp out slave and child labour from their supply chains.
AIG UK has announced an addition to its D&O policies that will cover costs not paid for by the company for legal challenges in the event of permanent residency applications being rejected pre Brexit. The insurer says its new policy will also cover the subsequent challenges to repatriation orders post Brexit
Culture is about the values and behaviours adopted when a group of people come together in a common purpose. Risk is a threat to objectives or, to put it another way, a threat to that purpose. And one way of making sure that those risks are mitigated is to provide the information and knowledge that will support good risk-based decisions.
Communication issues have for the first time been named as the top cause of UK invocations in the UK in Sungard Availability Services’ annual Availability Trends report. Overall, the number of downtime incidents – in which staff were unable to work from their usual office or access business critical systems – remained largely the same, with only a five per cent decrease compared to 2014’s figures.
Enterprise cloud infrastructure provider, Iland, has won a contract to provide Bluestone Group with DRaaS as it transitions to a cloud first strategy. The multi-national financial services company says it relies on iland’s DR with advanced security to safeguard essential IT systems, achieve compliance and reduce costs by 40 per cent
Risk management solutions provider, Riskonnect has won a contract to provide Vodafone with a fully mobile application to provide a complete view of risk across the enterprise. “Riskonnect met all of our requirements of a GRC tool, including flexible design, intuitive interface and the ability to work anywhere, on any device. Their understanding of our needs and ability to quickly implement these on their system gives us great confidence for...
Before the referendum the CBI indicated that only 50% of FTSE companies had made contingency plans for an exit vote. There was a significant variance in levels of preparedness between sectors, with financial services well advanced and others with a long way still to go. Well, things are different now. The risks associated with ‘Brexit’ must now surely feature on the list of principal risks.
Like AI, nanotech has huge potential, with significant benefits and risks in its applications in electronics, energy and biomedicine – such that it could underpin almost all future technology. The ability of nanotech to improve healthcare and lengthen our lives is promising, but the benefits don’t come without risks, the most striking of which of course is the potential use of nanotech in war.
Following the vote to leave the EU, the UK economy is expected to face challenges in the short term, but will narrowly avoid falling into recession. This is according to fresh analysis from PwC. Recent high levels of uncertainty, it says, will lead to a slowdown in business investment and lower GDP growth, leading the firm to revise down its main scenario real GDP growth projection for the UK to 1.6% and 0.6% a year in 2016 and 2017 respectively, down from 1.9% and 2.3%. Quarter-on-quarter growth could fall to around zero in the last quarter of this year and the first quarter of 2017, but the UK would narrowly avoid a recession. Growth would then gradually pick up later in 2017 and beyond.
This is a pivotal time for risk managers in the public service arena. Public service organisations have had to reassess their risk appetite in light of the pressures on resources that 10 years of austerity have brought about. Difficult decisions are being made about the future shape and sustainability of a whole range of public services. These decisions all bring higher levels of risk.
UK risk management association Airmic has welcomed a study by the Financial Reporting Council urging bosses to get out beyond the boardroom to understand their firms' corporate cultures -- a move they say could help firms avoid scandals and failures that can result in damaged reputations
An activist group named 'Move for Europe' has held anti-Brexit demonstrations in multiple cities throughout the UK. Protests were held in London, Manchester, Bristol, Sheffield, Nottingham, Bath and Watford. The incidents were not very well attended and concluded without incident, but security experts Red24 warn they’re indicative of a section of British society who opposed the referendum and have warned further related rallies are expected. The threat of violence at related protest activities is assessed to be low; however, the possibility of isolated skirmishes cannot be discounted.
Amazon has announced a partnership with the government to explore the steps needed to roll out the delivery of parcels by small drones. A cross-government team supported by the UK Civil Aviation Authority (CAA) has provided Amazon with permissions to explore three key programmes including beyond line of sight operations in rural and suburban areas; the testing of sensor performance to ensure the drones can identify and avoid obstacles; and flights where one person operates multiple highly-automated drones.
The earnings of Australia's non-life insurers is expected to strengthen through 2016 if losses from natural hazards moderate, even though investment earnings are unlikely to recover anytime soon from 2015 levels, given the high allocation to fixed-income securities
The deadline for entries for the CIR Risk Management Awards has been extended to midnight on 27th July 2016. As always, the awards are free to enter and organisations, individuals and teams are encouraged to submit their nominations now.
Natural disasters in the second half of this year could have a serious impact on the returns generated by the insurance linked securities (ILS) and reinsurance linked investment markets in 2016, a panel of industry figures has claimed.
Chubb has announced the launch of its new insurance proposition for biogas and solar plants, projects and facilities. Biogas and solar are playing an increasing role in the UK’s energy mix. As of June 2016, 200 biogas plants were in operation across the UK. On 3 July, for the first time ever, solar plants produced almost 24% of the UK’s electricity demand-more than coal-fired plants. Both sectors are attracting significant amounts of investment and are expected to develop significantly over the coming years, as the UK seeks to decarbonise its economy.
A new report from data breach response insurers, Beazley, has noted a sharp increase in hacking and malware attacks on financial institutions in the first six months of 2016, particularly among small banks and credit unions. The Beazley Breach Response (BBR) Services unit also noted a consistent level of hacks in the healthcare, higher education and retail sectors compared to 2015.
Today’s Supreme Court decision to allow “collateral lies” in the course of an insurance claim flies in the face of the work that the insurance industry and government have been doing to crack down on the cheats could be a real blow for honest customers.
Losses to cyber fraud among UK law firms have jumped by 40% in the last year, according to a study by Hazlewoods. The business advisory says the value of funds lost to cyber frauds at law firms in the six months from November 2015 to April 2016 totalled £2.53m, up 40% from £1.81m in the same period a year earlier.
Authorities in France extended a countrywide state of emergency in light of the most recent, horrifying terrorist attack in Nice, in which at least 84 people were killed.
The extension of the state of emergency, which was due to expire on 26 July, was prompted by an incident in which an armed assailant drove a truck at high speed into a crowd of people congregated in Nice amid Bastille Day celebrations.
The Natural Capital Protocol was launched this week in London. The Protocol aims to enable business to assess and better manage their direct and indirect interactions with natural capital and provides guidance to help them measure their dependence and impact on natural assets such as freshwater, raw materials such as timber, and natural infrastructure such as floodplains.
Complexity, lack of time, and a skills shortage mean that UK IT departments are failing to meet business expectations for digital technology. This is according to research from Sungard Availability Services that suggests IT decision makers in the UK are struggling to keep up with the increased digital demands placed upon them by employees and business leaders.
After a spate of announcements of large mergers and acquisitions (M&A) in the early part of last year, the number of completed M&A transactions in the insurance industry worldwide has fallen from its three-year high point in the first half of 2015. According to Clyde & Co’s Search for Growth Report released today, there were 173 deals in the period from October 2015 to March 2016, down from 250 in the previous six months. While M&A remains one route to growth, insurers are also considering alternatives such as establishing businesses in new markets, widening their portfolios and deploying technology solutions.
The Financial Conduct Authority has today fined Towergate Underwriting Group £2,632,000 for failings in relation to its protection of client and insurer money. Towergate accumulated a shortfall of £12.6m in its client and insurer money bank accounts which, due to systems and controls weaknesses, went undetected for a number of years.
The deadline for entries for the CIR Risk Management Awards is this Wednesday 13 July 2016. As always, the awards are free to enter and organisations, individuals and teams are encouraged to submit their nominations now.
Judged by an independent panel of experts for exceptional performance, the awards provide an opportunity for organisations and individuals to showcase their best products, projects and people.
The British Insurance Brokers’ Association (BIBA) has announced the appointment of Bollington Insurance to provide a new care sector insurance scheme for BIBA members.
This new offering is underwritten by a number of insurers specialising in this market and will enable members to place cover for a sector that is notoriously difficult to place without the need to commit to minimum volumes of business.
Sophisticated attacks on industrial control systems systems are not new. In 2014, an organised group of hackers called BlackEnergy APT attacked a power company in Ukraine. In the same year two more incidents, supposedly connected with cyber attacks, occurred in Europe: on a steel mill in Germany and on the Frederic Chopin Airport in Warsaw. In its latest report on the ICS threats landscape, Kaspersky Lab revealed 13,698 ICS hosts exposed to the Internet that more than likely belong to large organisations – including energy, transportation, aerospace, oil and gas, chemicals, automotive and manufacturing, food and drink, governmental, financial and medical institutions – of which 92% have vulnerabilities that can be exploited remotely. Worse, Kasperksy said over 3% of ICS hosts located in these organisations contain critical and remotely executable vulnerabilities. Those hosts, located in 104 countries are only a small part of the total number of hosts with ICS components available through the internet.
US$1bn of non-life catastrophe bond capacity was issued across six transactions in the second quarter of 2016, taking total market issuance for the first half of 2016 to US$2.8bn, according to the latest ILS market update from Willis Capital Markets & Advisory.
AXA UK has today released the first annual report on its partnership with the Venturer project, the first of three reports on autonomous vehicles. Having featured in the Queen’s Speech earlier this year, the UK has introduced new legislation that will make it compulsory for insurance companies to cover product liability for driverless vehicles.
The London market’s electronic placing platform began trading today, with brokers and underwriters exchanging information on standalone terrorism risks – the first class of business to go live on the PPL system.
Seasonal monsoon rains across central and southern China throughout June killed more than 130 people, damaged more than 200,000 homes and caused a total aggregated economic loss of over CNY29bn (US$4.4bn) according to China’s Ministry of Civil Affairs.
Schneider Electric has launched its new standardised, fully industrial uninterruptible power supply for industrial environments. Gutor PXC has been designed for rugged and outdoor settings such as oil and gas exploration and production sites, marine and offshore environments and climates with extreme temperatures.
The British Insurance Brokers’ Association (BIBA) has joined the Expert Advisory Panel for the sharing economy’s TrustSeal, launched today by Sharing Economy UK (SEUK). The TrustSeal stamp of approval is the world’s first kitemark for the sharing economy and will be awarded to sharing economy companies who successfully meet a list of Good Practice Principles.
BT and Daisy Group has agreed a new six year, £70 million cloud communications partnership, giving Daisy and its customers’ access to BT’s Wholesale Hosted Centrex (WHC) platform, which provides unified communications services, hosted in the cloud rather than over the traditional private branch exchange (PBX) service.
Arthur J. Gallagher has extended its investment in Scandinavia by acquiring an 85% stake in Swedish specialist insurance and reinsurance broker Brim AB. With revenues of US$11.4m and employing 29 people, Brim is a specialty broker with a client base of around 2,000 diverse clients served by two core practices. The company’s Credit and Political Risk practice provides financing support for major infrastructure projects around the world, whilst Brim’s Construction practice supports residential and commercial building development, together with infrastructure and civil engineering across Sweden, Finland and Norway.
The Managing General Agents’ Association (MGAA) has today published a dedicated guide for MGAs providing practical guidance and information on the implementation of the Insurance Act.
The CII has launched a new microsite dedicated to helping ex-forces transition and explore a career in risk and insurance. The site offers first hand experiences of ex-military personnel who have found second careers in insurance – this gives visitors their unique stories and helps others explore career paths in risk.
Renewal season has seen a continuation in market softening, though a slowing in the magnitude of rate reductions is apparent. This is according to the latest 1st View Renewals report from Willis Re, which shows capacity withdrawals where some reinsurers deem pricing to be inadequate.
-Considerable pricing variation by class and territory persists
-No indication of widespread pricing stabilisation
-UK’s decision to leave EU further impactful dynamic
Research carried out into the causes of, and responses to, the persistent threat of cyber attack has found some worrying trends in how companies respond to such incidents, including how quickly -- or more to the point slowly -- they take action after an incident has occurred. The Business Continuity Institute’s research is based on a survey of 369 business continuity professionals from across the globe.
At least 36 people were killed and dozens more wounded following a terrorist attack at the Ataturk Airport in Istanbul in Turkey last night. Three assailants arrived at the airport terminal in taxis and initiated a gunfight with the security personnel before detonating explosive suicide belts.
Ascent Underwriting has launched an enhanced cyber risk protection product, combining insurance, risk management and breach response solutions for UK brokers’ commercial clients across a broad range of industry sectors, with large risks on either a stand-alone or subscription basis and SMEs offered a proprietary technology platform.
Business group, the CBI has called for strong, calm and decisive leadership as priorities post-EU referendum. While the majority of businesses did not want to leave the European Union, director-general of the CBI, Carolyn Fairbairn said business leaders are determined to work with government to create the right conditions and face upcoming challenges.
New UK disclosure rules did not curb CEO pay or improve pay-performance link, but instead led to "opportunistic reporting" for reputation management, according to a new academic study.
Chubb has enhanced its casualty policy wording for businesses in the UK and Ireland. The enhanced wording is for businesses of all size - from small and medium-size businesses, through to middle market and larger companies, including multinationals. It includes a number of significant new extensions, including for data breach and cyber attacks as well as for crisis response, with annual aggregate indemnity limits of £100,000 for both.
The London insurance market is resilient and well-positioned to respond to the result of the referendum on the UK’s membership of the EU, the International Underwriting Association (IUA) has stated.
-Industry is “experienced in responding to change”
-Companies will now be considering their own individual responses
-Insurance is almost by definition an international business
Lloyd’s of London has mirrored the forward-looking reaction of the International Underwriting Association following the UK’s decision to leave the EU. In a statement, Lloyd’s chairman John Nelson, assured of the buoyancy of the London Market. “I am confident that Lloyd’s will stay at the centre of the global specialist insurance and reinsurance sector, and I look forward to continuing our valuable relationship with our European partners.”
British voters have overthrown not just Britain’s relationship with its European neighbours but the established political order in the UK, and, potentially, Europe, says director at UK-based think-tank, Chatham House, Dr Robin Niblett. “The politicians who will lead the UK out of the EU must guard against allowing a yawning gap to emerge between their political rhetoric and the realities facing Britain outside,” he said, adding that those who promised to the British people that leaving the EU would let them ‘take back control’ are now expected to deliver on that promise.
The British people’s vote to leave the EU is a “momentous turning point in our history”, according to CBI, director-general, Carolyn Fairbairn. “The country has spoken and it’s for us all to listen. Many businesses will be concerned and need time to assess the implications. But they are used to dealing with challenge and change and we should be confident they will adapt.”
The Financial Conduct Authority said in a statement that it is in very close contact with the firms it supervises as well as the Treasury, the Bank of England and other UK authorities, and was monitoring developments in the financial markets.
Global catastrophe risk management firm, RMS has released an updated version of its cat modelling platform, which includes updates to both the RMS Europe Windstorm Clustering Model as well as the RMS Probabilistic Terrorism Model, RMS Terrorism Scenario Model, the terrorism target database, and the Industry Loss Curves. The new RMS Marine Cargo & Specie Model and new RMS US Flood Hazard Data are also included in the version 16.0 release.
Crypto-ransomware, which encrypts data on users’ systems has become a huge problem for cybersecurity over the last few years, and the number of users attacked with encryption ransomware is soaring, with 718,536 users hit between April 2015 and March 2016: an increase of over five times compared to the same period in 2014-2015.
Rory McIlroy is reported to have pulled out of the Rio Games over Zika concerns, following Vijay Singh and Australia's Marc Leishman. Meanwhile, the World Health Organisation has issued an extensive health advice note for travellers to the 2016 Summer Olympic and Paralympic Games, which will take place from 5 to 21 August 2016 and from 7 to 18 September 2016 respectively.
The Chartered Insurance Institute (CII) is calling for future leaders in claims, underwriting, insurance broking and the London Market to put themselves forward for the 2016/17 New Generation Groups programme.
There is a growing demand for risks to be written on a Freedom of Services basis across the European Union, according to a new research paper published by the International Underwriting Association (IUA), which says such contracts provide a flexible option for clients and have become a significant option for some multinational corporations looking to develop their more traditional global liability programme arrangements.
The use of wearable technology in the workplace is being stalled by a lack of trust as people worry that their employer may use the data against them or not for their benefit, according to new PwC research. Data privacy continues to be the main barrier for those workers unwilling to share their information. Four in 10 say they don’t fully trust their employer...
Catastrophe risk modelling firm AIR Worldwide has expanded and enhanced its earthquake and typhoon models for Southeast Asia. The new earthquake model features the ability to account for the tsunami and liquefaction sub-perils for Indonesia, the Philippines, and Taiwan. The updated typhoon model features a new precipitation-induced flooding module built using high-resolution data and also a probabilistic storm surge module for Hong Kong, the Philippines, and Taiwan.
The number of young people entering the workforce is not predicted to match the number of roles businesses need to fill. This is according to the government’s 2016 Working Futures report, which reveals that while the total number of jobs in the UK is expected to rise by 1.8 million between 2014 and 2024, the working age population (16-64) is expected to increase by half this amount, as fewer young people enter the workforce.
The latest piece of regulation affecting the industry has come into force today, and is set to have a significant impact on how insurers engage with their providers of external audit and non-audit services. Affecting companies of all size, the latest piece of regulation comes at a time when insurers have already declared their concern around regulatory pressure.
Acer has suffered a data breach through its online store. The company says that users that have accessed its e-commerce site between 12th May 2015, and 28th April 2016 may have had their information compromised due to the unauthorised access of a third-party.
Allianz Group is to acquire Zurich Insurance's Moroccan subsidiary.
Zurich Assurances Maroc is one of the largest insurance companies in Morocco, currently ranking 7 in the P/C market and serving more than 600,000 customers. In 2015, Zurich Assurances Maroc generated E114m in GWP. The company also has a licence for life and health insurance products.
Insurers in both the life and general insurance sectors are planning on expanding their workforces, with digital and systems and software development skills listed as the area in which shortages are most expected. These are the conclusions of the CBI/PwC financial services survey, published today, which shows total operating costs continuing to increase, and investment in technology a persistent theme across the sector.
A survey of 250 UK insurance broking firms has found that attitudes towards a UK exit from the European Union are softening, with the number of brokers in favour of Brexit increasing from 22% to 26%. The survey, carried out by research and communications consultancy FWD, found over the same period between March and May 2016, the number of brokers backing the UK to remaining in the EU fell from 43% to 39%; those undecided remained unchanged at 35%.
Incidents relating to the installation and operation of high voltage subsea cables are the most costly cause of financial losses in the global offshore wind industry and led to insurance claims totalling more than €60m in 2015. As the European offshore wind sector prepares to enter an extended phase of deep-water construction and new markets open up in North America and Asia, Gcube is urging the industry to address a problematic bottleneck that can cause 100 days or more of unscheduled project delays and create substantial cost overruns.
A poll conducted among 900 manufacturing companies by UK-based recruiter Manufacturing Futures, part of the recruitment company Futures.co.uk, suggests the sector is pro-Brexit. Of the 900 manufacturers quizzed, 55% said they think the UK should go it alone. However 14% of respondents admitted that they could still be persuaded to change their mind about how to vote in the upcoming referendum on 23rd June.
The European Union Commission is to put forward a BIBA-proposed solution to the problem for motor insurance resulting from the ruling on the Vnuk case. The association has been working with the insurance industry and motor sports sector since the judgement which had the potential for far reaching implications.
Almost two thirds of insurance professionals have admitted to a crisis of confidence over Britain’s membership of the EU, with 61% of industry employees testifying a ‘loss of faith’ in the European Union. Despite this, 62% of the same industry professionals believe that total divorce from the European Union would be too drastic a solution.
A mass casualty shooting and hostage incident killed 50 people and wounded a further 53 at a nightclub in Orlando, Florida. The alleged perpetrator, Omar Mateen, was killed by security forces amid a security operation launched by SWAT officers shortly after the incident was reported.
The growth of the commercial drone market is increasing demand for specialist drone insurance, according to law firm, RPC. The drone industry sprang into life in 2015 with 1,971 new Civil Aviation Authority (CAA)-approved commercial operators (up from a single one in 2014) – creating a new growth market for insurers. Which sectors require specific insurance?
Congratulations to all of this year's Business Continuity Awards winners. If you didn't make it to the Marriott on Grosvenor Square to join the celebrations, found out who won here... Hosted by comedian Ed Byrne, the 18th annual Business Continuity Awards...
As organisations face an unprecedented level of change and complexity, risk takers and risk managers will need to come together to address both upside and downside risks, according to a RIMS Executive Report, 'Risk Taker vs. Risk Manager'.
UK professional and management liability insurance claim notifications have risen steadily over the last decade and remain four times higher than pre-financial crisis levels, according to research by Marsh. Between 2005 and 2007 the firm recorded an average of 200-300 D&O liability insurance claim notifications. With the onset of the financial crisis, claim notifications rose by 75% to nearly 500 in 2008, before peaking at 1,685 claim notifications in 2012. Since 2013, Marsh has received, on average, approximately 1,300 D&O claim notifications in the UK annually, a four-fold increase on pre-financial crisis levels.
Commercial insurance underwriters urgently need to adapt their products to reflect the impact that digitalisation and technological advances are having on risk profiles, according to experts from Willis Towers Watson.
Arthur J. Gallagher has unveiled its new ‘security concierge service’. For £500 a year, regardless of company size, its crisis resilience solution has been designed to minimise disruption, financial loss or adverse publicity while enabling businesses to meet their legal duty of care to employees and members of the public exposed by such incidents.
Insurance claims linked to the recent flooding in Germany could reach E1bn, according to figures from Fitch Ratings, which, it warns, could weaken underwriting profitability for the sector.
Pool Re has partnered with Cranfield University and Guy Carpenter to develop a UK terrorism risk model that includes the potential impact of a chemical, biological, radiological or nuclear (CBRN) attack. Pool Re said major strands of its modernisation programme have been concerned with the introduction of more risk reflective pricing and an improved understanding of the exposures faced by both the insurance community and the broader UK business community in the face of a changing terrorism threat.
Three times as many countries are affected by high or extreme levels of regulatory risk as they are by severe political violence, making it the most widespread political risk impacting global business today, according to Verisk Maplecroft's latest index release. Study identifies countries with most -- and least -- burdensome regulatory risk
Swiss Re Corporate Solutions has expanded its cyber risk insurance offering with the launch of CyberSolutions UK, providing tailored coverage to mid-sized and large companies. CyberSolutions UK combines comprehensive insurance with risk mitigation and remediation services, with cyber security training and optional annual IT security testing provided by IBM.
Ericsson is to develop a mobile financial services solution for deployment in the immediate aftermath of disaster or crises. Designed to support humanitarian organisations and affected populations, the Ericsson Emergency Wallet will enable the distribution and use of digital funds by relief workers and impacted populations where financial infrastructure is lacking.
Disruptions and evacuations are ongoing in several departments of France's Ile-de-France region, with the Essonne, Paris, Loiret and Seine-et-Marne departments the worst affected. Flash floods have inundated both residential and commercial properties, and have resulted in disruptions to road and public transport services. At least one flood-related fatality has been reported in Souppes-sur-Loing, in the Seine-et-Marne department.
Two additional insurers have joined the Lloyd’s Construction Consortium, bolstering underwriting capacity for large construction risks across the major onshore construction and engineering risk categories. Launched in 2013 by syndicates managed by Beazley, Sompo Canopius, Hardy and Talbot, the addition of Travelers and Novae means the consortium can now provide additional capacity up to a maximum of US$320m per risk, (equivalent to in excess of US$1bn sum insured capacity).
US-based risk management organisation, RIMS, is advising the risk management community to review and prepare for new rules regarding electronic recordkeeping of workplace injuries. The new rules, released by the Occupational Health and Safety Administration (OSHA), will take effect September 2017.
One Sunday in April, a British Airways flight approaching Heathrow was struck by something at about 1,700ft. The pilot reported that it may have been a drone. Despite the speculation behind what hit that aircraft on its descent into one of the world’s busiest airports, there are still a number of certainties.
This year Alarm celebrates 25 years supporting risk and insurance professionals in the public service arena. A lot has changed in that time; risk management was often driven from an insurance and operational perspective, rather than at a strategic level. Now insurance is regarded by many as one of a number of ‘tools’ of risk management, and risk management itself regarded as a tool to help achieve goals and objectives within an organisation.
Europe continues to face an increase in terrorist plotting. Nesser’s history of more than two decades of Islamist terrorism is a unique account of the rise of jihadi militancy in Europe, offering a background for understanding the emerging and future threat. Beginning with a chapter that looks at the emergence of jihadism in Europe, Nesser traces the origin of the phenomenon to the ‘Afghan-Arab’ foreign fighter movement. The chapter also sheds light on how jihadis in Europe exploited the freedoms of democracies while creating a subculture around radical mosques and
social media activism.
The concept of ‘scenario analysis’ is often referred to as an essential tool in the risk manager’s tool kit, but is rarely fully explained. Put simply, scenario analysis is an exercise conducted to consider the questions ‘what might happen and what would we do?’ It can help to highlight risks and opportunities in the short and long term and used to test the effectiveness and efficiency of the relevant controls in place. However, scenario analysis is not a stand-alone activity and it should form part of the organisation’s overall risk management system, which in turn should be aligned to the organisation’s business model.
Early in March, the Basel Committee issued a consultation about a major revision to the way banks calculate capital for operational risk. The Advanced Measurement Approach, in which banks can use their own internal models, similar to Solvency II for European insurers, is being changed to a Standardised Measurement Approach so that they will have to use a formula devised by the regulators. In a broad sense it uses income as the basis for the charge, scaled by the size of the bank’s operational risk losses over the previous 10 years.
The annual cost of fraud in the UK could be as high as £193bn per year, dwarfing previous estimates produced by the UK Government which put the figure at around £50bn in 2013.
UK mid-market businesses lost approximately £48bn last year due to a failure to adequately mitigate risks directly within their control, according to new analysis by KPMG Enterprise.
Almost 90% of UK organisations feel vulnerable to both internal and external data threats to sensitive data, with 23 percent feeling ‘very or extremely’ vulnerable, according to a report by data protection company Vormetric.
The average cost of a domestic claim for the floods caused by Storms Desmond, Eva and Frank which hit the UK in December and early January was higher than usual, with the Association of British Insurers (ABI) reporting that it expects the final repair bill to reach £1.3bn.
Allianz Insurance has launched a new, online marine cargo proposition designed for SMEs and mid-sized corporate businesses. Allianz’s Complete Cargo product provides cover for loss or damage to goods whilst in transit within the UK and to or from countries worldwide, as well as the option to include UK storage cover.
Turmoil in emerging markets, increased localisation of internet networks within country borders and financial repression are some of the key risks identified in this year’s SONAR report published by Swiss Re. The publication is based on the SONAR process, a crowdsourcing tool drawing on Swiss Re’s internal risk management expertise to pick up early signals of what lies beyond the horizon.
Impact Forecasting, Aon Benfield’s catastrophe model development team, has incorporated its latest earthquake data into the new tool, ThinkHazard!. Produced by the Global Facility for Disaster Reduction and Recovery (GFDRR), housed under the World Bank, the tool supports disaster risk reduction and preparedness.
This year we are introducing five new categories: the Operational Risk Achievement Award, Operational Risk Initiative of the Year, Quantitative Analysis of the Year, Environmental Risk Initiative of the Year and Cloud Risk Strategy. It's freeto enter the awards and you can put your organisation forward in as many categories as you wish.
The World Health Organisation is calling on European countries to prepare as the Zika virus expected to spread to the region by late spring or summer. A new WHO report assesses the risk of a Zika virus disease outbreak occurring during this period, and concludes that while the overall risk is low to moderate, countries where Aedes mosquitoes are present are more likely to experience an outbreak.
Automotive recalls reached their highest quarter on record during Q1 2016, increasing by a significant 76% from Q4 2015. By comparison, recalls of consumer products, including toys, clothing and electrical appliances, declined from the previous quarter. Although this industry is experiencing a downward trend, the vast majority of recalls in Q1 were considered a serious risk.
Catastrophe modelling firm AIR Worldwide has released a hosted cloud solution for its catastrophe risk management platforms Touchstone and CATRADER. More than a dozen companies are already using AIR Cloud, including the recent addition of American Family Insurance.
Munich Re's specialist engineering and construction division, HSB, has announced the launch of HSB Machinery and Technology Insurance, its combined equipment breakdown, deterioration of stock and loss of income policy. Aimed predominantly at manufacturing, food, pharmaceutical and specialist engineering industries, the new policy provides cover for damage and breakdown to fixed manufacturing, processing and services equipment, deterioration of stock cover for stock being stored in cold chambers, and financial loss cover following an event.
The recent ransomware attack on the NHS and over 30,000 companies globally has brought cyber risk to the top of the risk and news agenda. While the impact has been felt beyond the health sector, there are a number of lessons the sector draw from it, according to Chair of the Health and Care Sector Interest Group at the London-based Institute of Risk Management, Patrick Keady.
International Lloyd’s insurance and reinsurance broker, RFIB Group, has launched an American division – the first major new initiative since it recapitalised with its new partner, Calera Capital, last year.
Equifax and BAE Systems are launching the Equifax Watchlist Check, aimed at helping companies fight money laundering and terrorist financing. The real-time solution screens worldwide data to support compliance with the Fourth EU Money Laundering Directive. EU member states are required to implement the directive by mid-2017 and the associated regulation applies to any company providing financial services.
Telecoms company TalkTalk published its annual results this week, which have been halved partly as a result of a series of cyber attacks last year. Commenting on the results, Mark Skilton, professor of practice at Warwick Business School and cyber security researcher, said the results were not surprising.
KPMG has launched a Solvency II data aggregation service that for the first time enables insurers to benchmark themselves against other insurers. The new service, Solvency II Vantage Analytics, will aggregate Solvency II reporting data in the XBRL format, so that insurers falling under the regulation can get meaningful insights about where they sit in the market.
Lower oil prices and the threat of terrorism is impacting global supply chain resilience, as Norway loses the top spot of most resilient country to Switzerland.
The strength of the claims reserves being set for business written during 2015 is weaker than prior years of underwriting, according to PwC's London re/insurance market review of reserve adequacy.
The World Health Organisation (WHO) issued a statement today concerning the Zika virus and the forthcoming Olympic and Paralympic Games, Rio 2016 (5 August to 18 September 2016). Its latest situation report, released 12th May, indicates that 58 countries, including Brazil, continue to report mosquito-borne transmissions. A number of countries have also reported person-to-person transmission, including Argentina, Canada, Chile, Peru, US, France, Italy, Portugal and New Zealand. The WHO states that the person-to-person transmission cases were likely sexually transmitted.
British Insurance Brokers’ Association (BIBA) chief executive, Steve White, has called for improvements in the recognition of the value, awareness and take up of cyber insurance protection. Addressing delegates at the association's annual conference in Manchester today, White said the latest government figures on cyber security breaches are a cause for concern.
The Insurance Act 2015, the most important change in insurance law in over a century, comes into force on 12 August 2016 and will require insurance brokers, their customers and insurers to adopt different operational processes for managing commercial insurance. Its aim is to encourage professionalism in all parties involved in commercial insurance.
Following a regular scheme review the British Insurance Brokers’ Association (BIBA) has appointed Lorega as the provider of their members’ loss recovery insurance scheme.
The jury’s out for brokers when it comes to assessing the impact of a Brexit. This is according to a quarterly poll of brokers from insurance and risk law firm, BLM. It says 42% believe a Brexit would have no impact on insurance buying habits, while 40% think it would. A further 18% are unsure.
The 2015/16 Cyber Governance Health Check has been released, showing that British companies are still not adequately addressing the severity of the threat. Just over half of respondents stated that they only hear about cyber security twice a year or when there is a security incident, showing little improvement since the previous year. The research also revealed that two-thirds of FTSE companies had been hit by a cyber attack in the past year alone, yet only 17% of UK firms have trained staff in this area over the past year.
Chubb has announced the launch of a suite of three transactional risk liability insurance products for the UK and London markets. Targeted at buyers and sellers with medium to large size transactions and offering policy limits of up to US$50m/ £32.5m/ €47.5m, products include warranties and indemnities insurance, contingent tax indemnity insurance and contingent liability insurance.
The global economy suffered the worst April for natural disaster losses for five years, according to Aon’s latest catastrophe report. Earthquakes, convective storms and flooding were all contributory factors.
An FCA thematic review of commercial claims recently revealed what they called “an alarming degree of under-insurance”, and the effects of this can have devastating consequences for both the insured and for the broker. To tackle the issue of under-insurance, the British Insurance Brokers’ Association has launched the sixth guide as part of its Professional Indemnity (PI) Initiative.
Policyholders will soon be able to claim damages for late payment of insurance claims, following the passing into law yesterday of the Enterprise Bill. Brokers and insurers are being urged to prepare for the new rules now. The question of what is a reasonable time to investigate a claim and how insurers can demonstrate that they have not unreasonably delayed payment is likely to be a contentious area, and law firm CMS is advising that insurers review their claims procedures and have systems in place to show that they acted reasonably if required.
A syndicate of banks and academics has launched a joint project to pilot scenario modelling to stress-test corporate lending portfolios for environmental risk. Citi, UBS, ICBC, Banamex, Banorte, Caixa Econômica Federal, Itaú Santander and FIRA have teamed up with the Natural Capital Declaration and the German Government’s Emerging Markets Dialogue on Green Finance to include the economic impact of drought in bank stress testing scenarios. In a first step, the pilot project will develop an analytical framework to enable bank stress testing models to include scenarios of the economic resilience of major industries to the risk of extreme droughts.
Willis Towers Watson has launched a new insurance and risk management solution for companies serving the global oil and gas industry. Underwritten exclusively by Chubb, Risk Protect features industry specific insurance policy wording addressing current and emerging risks in the oil and gas sector, from cyber security to supply chain interruption and terrorism.
A failing NHS, coupled with an ageing population are set to bring about spike in health insurance costs. In fact, UK health insurance costs are anticipated to grow by 6.5% in 2016, the largest increase in five years, according to analysis carried out by Willis Towers Watson. Its latest 'Global Medical Trends' report shows how high claim volumes are causing health insurance costs to increase year-on-year at one of the highest rates in Europe.
Supply chain risk rose for the second consecutive quarter in Q1 2016, with several natural disasters revealing stark regional differences in the resilience of global supply chains according to the latest CIPS Risk Index. The Index, produced for the Chartered Institute of Procurement & Supply (CIPS) by Dun & Bradstreet economists, tracks the impact of economic and political developments on the stability of global supply chains. International supply chain risk grew from 79.3 in Q4 2015 to 79.8 in Q1 2016, the joint highest recorded level of supply chain risk in a first quarter since records began in 1995 with North Africa, Western Europe, Asia and Latin America all seeing levels of supply chain risk grow.
The Institute and Faculty of Actuaries (IFoA) has today released a report on the widening gap in infrastructure investment that states the UK is falling behind other G7 countries and risks becoming globally uncompetitive.
In its report, the IFoA analyses some of the issues that underlie the investment gap in three sectors: renewable energy, transport and housing.
Marches and rallies by trade unions and other groups are expected to take place in various countries across the globe on 1 May, to mark International Workers' Day, more commonly known as May Day or Labour Day, or to mark labour-related issues.
The majority of May Day events are expected to pass peacefully, but risk advisors at Red24 are warning that violence has occurred at May Day events in the past, and that this risk increases in countries experiencing heightened labour-related tensions or increased levels of anti-government sentiment.
The London insurance linked securities (ILS) market is perfectly positioned to become the global centre for cyber risk insurance, according to a new report from BNY Mellon. The UK government started a consultation process last year designed to attract ILS business to the UK and maintain London’s position as a leading global hub for specialist reinsurance. The consultation process closes at the end of this week, 29th April 2016.
Professional services firm Charles Taylor has launched a technology arm, tapping into the £90 billion global insurance technology market, and bringing together 200 specialist insurance technology staff to deliver business transformation, solutions, analysis, systems development and implementation.
While the next wave of digital technologies will transform the very nature of insurance organisations – including what they do and how they do it – those that succeed will do so by dramatically transforming their workforces and cultures to operate in a digital world, according to a new report from Accenture.
A number of doctors' unions, including the British Medical Association (BMA), have called for a countrywide strike and associated demonstrations across the UK. Called with regard to inadequate wages and work schedules, unionised junior doctors are scheduled to observe nine-hour work stoppages today and tomorrow, the 26th and 27th April, with associated demonstrations also anticipated.
A new qualification for professional indemnity practitioners in the UK market has been developed by the International Underwriting Association. The first candidates have already taken the examination and new courses are now being made available.
The public consultation process for the international standard ISO 22316 Guidelines for organisational resilience is now open with UK comments requested by 13th June 2016. National standards organisation, BSI, is leading the consultation process in the UK. Organisations that are resilient understand their behaviour can create long term success," commented Scott Steedman, director of standards at BSI. "They take a proactive approach to governing themselves and have noted the importance of being prepared. This strategy applies across a wide range of disciplines such as asset management, business continuity, cyber security, environmental management and facilities management, to name a few. We are very pleased that ISO 22316 will continue the work started by BS 65000, and help deliver benefits to businesses of all sizes and sectors around the world.”
Everbridge has announced the launch of its enterprise level secured person to person communications platform, SecureBridge, designed to facilitate company-wide recovery when an organisation has lost or had its communication infrastructure compromised, featuring end-to-end encrypted communications to ensure the privacy of sensitive data.
This weekend, BT and the Cyber Security Challenge UK staged a mock investigation into a cyber attack at London’s iconic BT Tower in a bid to find the country’s best hidden cyber security talent. Twenty-four of the brightest candidates from a series of online qualifying rounds were invited to compete against each other to investigate how a fictitious retail company came under vicious cyber attack, show off their abilities in front of prospective employers and qualify for the Challenge’s 'Masterclass' competition.
Each year, up to 30,000 travellers contract malaria, and last year alone there were 214 million new cases of malaria were reported and 400,000 people died of the disease. Countries are reporting a rise in imported malaria cases and companies sending staff overseas are being warned about the importance of taking appropriate precautions and implementing prevention tactics when travelling to malaria endemic areas.
The series of earthquakes this month in Japan are not expected to undermine the financial soundness of Japanese non-life insurers, based on preliminary analysis carried out by Fitch Ratings.
A misunderstanding in how Solvency II liabilities are calculated is raising concern in the industry, According to European insurance and reinsurance federation, Insurance Europe, some observers appear to believe that the Ultimate Forward Rate (UFR) is the discount rate, where in fact the UFR is an input needed to generate interest rate curves which go out to 130 years. The actual discount rates used to value liabilities for Solvency II are actually far lower than the UFR of 4.2%.
The Federation of European Risk Management Associations (FERMA) has told the European Commission that enterprise risk management (ERM) is the best method for companies to approach the new EU requirements for large companies to report on their non-financial or corporate social responsibility risks.
A digital divide is opening up across the British economy, with just over half of pioneer firms adopting digital technologies and processes, while the other half are falling behind. This is according to new research by the CBI and IBM.
Cat risk management firm, RMS, estimates that economic property damage for both the April M7.0 and M6.4 earthquakes in Japan to be between US$2.5bn and US$3.5bn.
A state of emergency has been declared in nine counties across Texas, after heavy rains caused flash floods and damage across the region. A series of thunderstorms brought in one night the same amount of rainfall expected for this area in the five-month span of January 1 to May 30.
Nearly half of insurance companies recognise the critical importance of cultural integration and of hiring and retaining employees to the overall success of a deal, according to a survey of senior insurance executives conducted by Willis Towers Watson and Mergermarket.
Research from cyber security firm, RiskIQ, has found that six in 10 Brits that use personal devices for work also use the same device for streaming or downloading pirated content. Whilst almost all these individuals consider the personal security risks of doing so, the research suggests they do not consider the security implications of doing so for their organisation.
The death toll from the M7.8 earthquake that struck along the coast between Pedernales and Muisne in Ecuador on 16 April, has risen to 413, as of 19 April. A further 2,600 people have been injured, although the casualty toll is expected to increase further. The majority of deaths occurred in the province of Manabi and the provincial capital of Portoviejo. Foreign nationals killed by the quake included seven Colombians, two Canadians and at least one US national, according to reports from Red24.
Markel has extended its biomedical and life sciences products to include food supplements and cosmetics. The product will now cover businesses that manufacture, distribute and supply products including vitamins, minerals, food supplements, medical foods, weight management formulas and herbal products. It will also cover a variety of cosmetic products ranging from hygiene and beauty products and make-up.
A drone is believed to have collided with a British Airways aircraft on the passenger plane's approach to London Heathrow yesterday. While no-one was hurt, and the outcome of an investigation pending, the Chartered Insurance Institute has said the incident serves to highlight the growing risk of drone-related accidents.
A strong and shallow earthquake occurred last night on Kyushu, the most southwesterly of Japan’s four main islands, and about 800 miles southwest of Tokyo. The Japanese government issued a high-level alert in the southern province and alerted disaster management teams. Damage to buildings and some casualties are being reported.
Kaspersky Lab has launched a specialised solution for securing critical infrastructure and industrial facilities, addressing the need to manage industrial cyber risks and protect the continuity and integrity of technological processes in these environments. Kaspersky Industrial CyberSecurity has been designed for use in power plants, refineries and assembly lines to railways, airports and smart buildings, which demand faultless continuity and consistency of the technological process.
Plans to increase transparency in the renewal process of general insurance policies have been supported by the International Underwriting Association. The organisation backed a Financial Conduct Authority proposal to ensure renewal notices include the previous year’s premium. But it warned that overemphasising the price of a policy could cause clients to overlook other aspects of the cover and lead to inaccurate comparisons being made.
European Parliament today, Thursday, passed the final vote for the new General Data Protection Regulation (GDPR). Intended to help strengthen online privacy, streamline legislation between the 28 member states and boost police and security cooperation, the regulation includes tougher penalties for companies in breach of EU data protection law, with fines of up to 4% of global turnover, and a requirement for companies to disclose personal data breaches within 72 hours. The reform also sets minimum standards on use of data for policing and judicial purposes.
The CII Insurance Broking Faculty New Generation group is calling for industry wide action to address the gap in reputational risk protection for small and medium-sized enterprises. In a new report, the industry group details the growing threat of reputational risks associated with recent advancements in social media and attendant global connectivity. The report goes on to address the lack of response from the insurance sector to mitigate this developing risk; and analyses the difficulties in offering reputation damage cover and puts forward practical solutions it feels the sector can and should adopt.
Risk is something that dominates our lives but is sometimes hard to define and quantify – not least because it can mean anything from an injury resulting from a fall, going bankrupt the possibility of mass flooding caused by global warming, child sexual exploitation or a terrorist attack.
It has been reported that two additional individuals have been charged with terrorism-related offenses related to Brussels bombings, after additional security forces were deployed in Brussels yesterday. A further 300 military personnel were deployed across Belgium's capital in addition to the 1,500 troops already in place.
2015 was the most lethal year for terrorist violence in Europe in nearly a decade, according to Aon’s latest Terrorism and Political Violence Map, which highlighted the first net increase in global terrorism risk ratings since 2013, as the risk ratings of 18 countries saw an increase.
Road safety continues to challenge policymakers and regulators across the globe. Changes in regulation and public attitudes over time have undoubtedly made roads safer. The advent of driverless cars now presents an opportunity where some politicians whisper about a potential target of zero road deaths.
PwC has entered into a partnership with maritime fleet monitoring and risk management solution provider, Pole Star, to provide organisations involved in international trade with legal and regulatory services.The new strategic alliance will help assist global financial institutions in managing risk in maritime supply chains. Pole Star’s PurpleTRAC solution screens ships and their associates for sanctions compliance and monitors historical and real-time movements.
AIR Worldwide has released the industry’s first open source deterministic cyber risk scenario, with plans to release a series of deterministic cyber scenarios over the next 12 months. The catastrophe modelling firm has also expanded its cyber risk consulting practice to help clients augment the cyber exposure information in their existing books of business and to produce custom reports on aggregation risk and the probability of breach.
Multinational companies are failing to treat anti-bribery and corruption as a priority, with the majority reporting a culture of ‘profits over prevention’ and almost half not even raising the issue at board level – leaving many of these firms open to significant fines, criminal prosecution and in some cases personal liability.
The recent rise in the number of mergers and acquisitions is driving take-up of warranty and indemnity (W&I) and tax insurance. In recent months, a number of household names in the food industry have been at the centre of significant deals. In October, Diary Crest announced it was to sell off part of its dairies operation to Muller. More recently, Premier Foods has been the subject of an offer by US company McCormick having also recently sold a significant shareholding to Nissin.
Aon Benfield estimates that total global reinsurer capital, which comprises capital both from the traditional and alternative markets, stood at US$565bn at 31st December 2015 – a reduction of 2% relative to the end of 2014. The Aon Benfield Aggregate (ABA) report analyses the 2015 financial results of 27 major reinsurers. Within this figure, traditional reinsurance capital decreased by 4% to US$493bn, driven by the strengthening of the US dollar and the impact of rising interest rates on bond valuations, while the influence of alternative capital continued to grow – increasing by 12% to US$72bn.
A spate of storms and flooding has resulted in a US$3.5bn loss to the US economy, US$2bn of which will be borne by insurers. These are the findings of an Aon Benfield report which reveals that seven severe US convective storm events impacted nearly every part of the country during the month, as more than 1,000 individual reports of tornadoes, damaging straight-line winds and hail were recorded by the Storm Prediction Centre.
The Federation of European Risk Management Associations (FERMA) is scheduled to launch its 2016 European Risk and Insurance Survey tomorrow. FERMA president Jo Willaert, said: "The world is changing rapidly and is certainly different since the last survey in 2014. Gathering up-to-date data and evidence will provide valuable information for risk and insurance managers in their companies and will contribute to the visibility of the profession. The FERMA European Risk and Insurance Report is also a source of strategic information for FERMA to position risk management in debates at EU and international levels."
The profitability of UK non-life insurers was affected by a series of weather events in 4Q15, although benign weather during the rest of the year meant that flood losses were within the annual budget for weather-related losses for most insurers. This is according to a special report from Fitch, which says that winter flood losses are large enough to significantly increase household insurance premiums but the introduction of Flood Re in April 2016 and an increase in insurance premium tax may slow the recent fall or create a modest temporary rise.