- Global drone patents up by a third as commercial applications take off
- Europe dominates list of countries most prepared for change
- Global firms accused of concealing their environmental impact
- Risk managers urged to utilise automation as a critical tool
- Digital lag holding back healthcare technology progress
The number of patents filed globally for drone technology at the World Intellectual Property Organisation (WIPO) has increased by 34% to 9,485 in the last year, up from 7,076 the year before, according to research by accountants and business advisors BDO. The firm says that the surge in the number of drone patents being filed reflects the growing competition between drone developers to expand their technology into new commercial uses.
European countries lead the way in the list of countries most prepared for major change events, including geopolitics, technology and climate change according to KPMG's 2019 Change Readiness Index, which ranks 140 countries on how effectively they prepare for, and respond to, major change events. The latest edition focuses largely on the capabilities countries need to successfully address climate change and mitigate associated risks. The Index measures a country's capacity for general change, but KPMG's methodology shows that those same capabilities also dictate a country's preparedness for climate change.
A group of 88 investors with nearly US$10 trillion assets are targeting companies that are not transparent enough about their environmental impact, and urging them to more fully disclose this information. The investors are targeting 707 companies across 46 counties for not reporting their climate change, water security and deforestation data. This includes Exxon Mobil, BP, Chevron, Amazon, Volvo, Alibaba, Qantas Airways as well as palm oil company Genting Plantations Bhd.
Leveraging automation should be a priority for security and risk management leaders if they are to create and preserve value within their organisations according to analysts at Gartner. Katell Thielemann, research vice president at Gartner, explained to an audience of more than 3,500 security and risk management professionals at the Gartner Security and Risk Management Summit, that the shift towards automation emerging in the security and risk landscape is one where new mindsets, practices and technologies are converging to unlock new capabilities. Using automation in areas of identity, data, and new products and services development were identified as three critical areas for the security and risk enterprise.
More than a third of healthcare professionals believe it will take at least a decade before their organisation is paperless and fully digital according to research by Deloitte’s Centre for Health Solutions. Among senior healthcare leaders, the figure rises to two-thirds, who cite funding, leadership and interoperability as the three key challenges. Funding is listed as the main obstacle for digital uptake, with 56% of healthcare professionals saying that the cost of the technology is holding back their organisation. One in 10 believe that it is finding the right technologies (11%) and the complexity of the technology (10%) which is hampering uptake.
Hiscox has launched a Cyber Exposure Calculator, designed to help businesses estimate the potential financial impact they may face if they were the victim of a cyber-attack. Free to use, the calculator offers businesses a view of their potential cyber exposure and the value of the data they hold. The tool also provides some insights into the types of cyber-attacks their business may face. The results can be downloaded and shared offline to help guide further discussions within businesses on how to manage and mitigate the cyber risk.
Businesses cannot afford to put their faith in politicians to produce a Brexit resolution, and should be considering all reasonable preparations for no deal, according to the Institute of Directors. With figures suggesting that the extension until October had had little initial impact on firms’ Brexit planning, the IoD urged business leaders to use the time left to ensure they fully understand their potential exposure to leaving the EU this Autumn without a deal, and to take sensible precautions.
The number of insurance claims made so far this year by UK businesses facing bad debts has reached its highest level in ten years according to latest figures from the Association of British Insurers (ABI). In the first quarter of the year, 57 firms every day were helped by trade credit insurers. Continued Brexit uncertainty, competition from online sales, rising business rates, weaker consumer spending, and increased operating costs due to the weaker pound are all contributing to the continued challenging trading climate.
The Food Standards Agency and Food Standards Scotland are continuing to investigate foods linked to listeria infections in hospitals, currently only finding cases in England. To date, all of the cases linked to the current incident have involved people from vulnerable groups in healthcare organisations who were being treated for existing medical conditions. All products linked to the current cases have been withdrawn and food chain investigations continue.
Appliance manufacturer Whirlpool is facing an "unprecedented" order from the UK government to recall over 500,000 tumble dryers that could pose a fire safety risk.The recall notice was announced by business minister Kelly Tolhurst after former Conservative minister Andrew Griffiths raised "great concern" over Whirlpool's "straightness" over the issue. Speaking in the Commons, Griffiths said he was concerned about whether people still had unsafe products in their homes.
£1.1bn a year of flood damage is being prevented by the UK’s current network of river barriers and defences, according to new research. The results were revealed at the Association of British Insurers’ conference 'Building a resilient future for the UK’s property insurance market'. The modelling, based on thousands of simulations of weather events with and without flood defences, was commissioned by Flood Re and conducted by Risk Management Solutions (RMS).
Technology risk, cyber risk and change management have been pinpointed as the three biggest concerns for insurers across the globe, according to a poll of more than 900 senior industry experts. The Insurance Banana Skins report, published by the Centre for the Study of Financial Innovation (CSFI) in association with PwC, found that the urgent need for business and technology modernisation poses the greatest threat to the global insurance industry.
Traditional retail stores under pressure to compete with online offerings may face increasing exposure to risk if they are forced to cut costs in their supply chain, according to the latest Global Supply Chain Risk Report, published by Cranfield School of Management and Dun & Bradstreet. Data for the retail sector shows increased levels of risk-taking since Q4 2018, with retailers reporting high levels of dependency on suppliers and indicating a propensity to off-shore to low-cost, high-risk countries where suppliers are more likely to be financially unstable.
Public perceptions remain a barrier to drone uptake in the UK according to new research from PwC. Less than a third of the public, (31%) feel positively towards drones, while more than two thirds are concerned about the potential use of drones for criminal purposes. This contrasts with 56% of business leaders who are positive about drones and their benefits - when including those already using drones in their business, this rises to 83%.
It was a big night for CMAC at the Business Continuity Awards... They will be filling the trophy cabinet after a raft of wins at the industry's main event. Find out who took away the coveted gongs from the Mayfair Gala Dinner last night, hosted by the fabulous Sindhu Vee....
Many emerging risks are going completely unchecked as risk managers focus on the more visible and easier to manage risks – or those for which they have more data or control. To help address this, Airmic and Marsh are calling for a new approach to managing emerging risks – indeed a “recalibration” to help rebalance efforts between the management of traditional and emerging risks.
The Society of Insurance Broking has issued a good practice guide for brokers’ internal audit controls. Published by parent organisation, the Chartered Insurance Institute and produced in association with PKF Littlejohn, the guide seeks to explain the three lines of defence model and makes a series of recommendations on areas of improvement, and outlines the importance of effective governance in risk management and accountable oversight of internal controls.
The digital revolution has profoundly altered underlying business and organisational dynamics to the extent that approaches to risk, governance and resilience need a major rethink. This is the message within a new Airmic guide for boards and senior executives seeking to manage risk and resilience in this context.
Allianz is to become the second largest general insurer in the UK after agreeing to buy Legal & General insurance and taking control of an LV= venture. The transactions equate to a combined gross written premium income of £4,029m and a market share of 9%. The moves will also establish Allianz as a top four insurer in the UK personal home segment. The acquisitions also mean that by the end of 2019, some 12 million general insurance customers will be insured by Allianz in the UK.
Risk managers, senior management and the insurance market must seek to "rewire their organisations" to ensure they have the necessary skills, structures and agility to keep pace with the fast-changing business environment; one in which complex liabilites and uncertainty are increasing. This greater collaboration is vital if companies are to address the interconnected nature of today’s risks.
The number of captive insurance companies writing third-party business is growing at double-digit pace as the digital era expands the way organisations deliver insurance solutions, according to data from Marsh. According to the report, 22% of Marsh-managed captives wrote some form of third-party business in 2018, representing a y-o-y increase of 12% and a 62% increase over the last five years. In particular, coverage for contractor, vendor, and customer risk continued its steep growth trajectory, increasing 138% among Marsh managed captives in the past five years. In 2018, Marsh captives writing such third-party risk generated a total of US$162 million in net premiums.
The 2019 North Atlantic hurricane season officially gets underway tomorrow, and runs for six months through to 30th November. As the season begins, catastrophe modeller and meteorologist at RMS, James Cosgrove says most analysts anticipate near-average activity in the Atlantic hurricane region, which comprises the North Atlantic Ocean, the Caribbean Sea and the Gulf of Mexico.
Despite high levels of economic growth, progress on child labour has stalled in the manufacturing countries most entwined with global supply chains, according to the latest data from global risk analysts at Verisk Maplecroft. Its Child Labour Index, which measures the frequency and severity of violations; a country’s adoption of laws and international treaties; and its ability and will to enforce them, shows that the major manufacturing hubs of China, India, Bangladesh, Vietnam and Cambodia have registered no tangible improvement in the ranking of 198 countries since 2016.
The Institute of Risk Management is to form a partnership with the Institute of Operational Risk. As part of the alliance, the IRM will provide support for the promotion of the IOR Certificate in Operational Risk. This will become part of the IRM’s global portfolio of qualifications, complementing the International Certificate and Diploma in ERM, and the new Digital Risk Management Certificate.
Redstor has opened an Amsterdam office as part of a global expansion strategy. The company has grown its customer base by more than 30% internationally in the last year, and says it is on track to treble business in the three years to 2020.
A new standard has been launched, designed to help cities protect critical resources and create and sustain opportunities for enterprise. Developed by BSI with the support of the World Bank, UNISDR, UN Habitat, OECD and representatives from UK cities, it is hoped the standard will contribute to the preservation of cities in the face of rapid urban expansion, climate change and disruptive events, such as pandemics.
Norway has retained its place at the top of the charts in a global study of resilience factors carried out by FM Global. It is followed by Denmark, Switzerland, Germany, Finland, Sweden, Luxembourg, Austria, central US and the UK in the insurer's 2019 Resilience Index. For the first time this year, corporate governance was added to the algorithm for ranking resilience of nations’ business environments, with Singapore ranked top.
The convergence of GDPR and other data privacy regulation with evolving technology – 5G networks, IoT, AI, the cloud – will further challenge businesses’ ability to foster technology innovation, protect privacy and maintain compliance. This is the warning of risk advisers at Marsh, on the first anniversary of the introduction of the EU General Data Protection Regulation. In the first nine months the GDPR was in effect, regulators brought more than 200,000 cases in 31 countries and issued nearly €56m in fines. Marsh says the diversity of monetary fines and enforcement actions demonstrate the GDPR’s broad scope.
The FCA has confirmed the deadline for notifications for the temporary permissions regime (TPR) will be extended to the end of 30th October 2019. TPR would allow EEA-based firms passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation. It will also allow EEA-domiciled investment funds that market in the UK under a passport to continue temporarily marketing in the UK.
The impact of current macro trends and risks, such as cyber security, AI and Brexit will continue to put pressure on, and potentially change entire business sectors. Leaders who think critically about the future, anticipate disruption to their sectors, while building resilience and agility in their models will be in a better position to tackle a challenging risk environment and thrive in the future.
Amid all the Brexit noise that has dominated the news for months – no, years – it is all too easy to lose sight of why and how Britain got to this point in the first place. Why, on 23rd June 2016, did the UK choose to leave the European Union? The answer matters because it tell us something profound about political risk.
A clash of new, digital technology with legacy hardware, new risks emerging from the roll-out of 5G mobile networks and increasingly limited fiscal and monetary policy flexibility are among a number of new and slow burning risks affecting the insurance industry. Genetic testing and its effects on the industry, and the effects of climate change on public health are included in the Swiss Re Institute’s latest analysis of emerging risks – newly developing or evolving risks that are difficult to quantify, but potentially have a significant impact on the industry and society.
New measures that cover plastic straws, plastic drinks stirrers and plastic cotton buds in England will come into force from April 2020. Environment Secretary Michael Gove confirmed the ban following an open consultation. The ban will include exemptions to ensure that those with medical needs or a disability are able to continue to access plastic straws, and registered pharmacies will be allowed to sell plastic straws and restaurants will be able to provide them on request.
The Financial Conduct Authority’s Thematic Review into General Insurance, published in April, makes for sobering reading. The watchdog found a “significant potential for harm to consumers” and went on to say that, “The widespread extent of these issues...is extremely disappointing given the focus and emphasis placed on these areas by the FCA in recent years.”
Across all emergency services there is ongoing concern about employee wellbeing, including working long hours, examining disturbing images and being involved in incidents – all of which are contributing factors in long-term mental health sickness absence. Terrorism is also a growing risk area, given the national and international increase in extremism. All blue light services have to be prepared for terrorism-related emergency incidents. And now, with continued Brexit uncertainty, the emergency services are preparing for possible civil unrest.
British Steel is on the brink of collapse, putting 25,000 jobs at risk -- 20,000 of which through its supply chain. The country’s second largest steel producer is asking for a £75m government loan to prevent the company collapsing into administration.
Online shopping fulfilment provider Ocado has warned staff that they may face redundancy following the fire at its warehouse operations in Andover, Hampshire in February. The £45m high-tech distribution facility suffered an extensive fire that burned for four days, which investigators believe was caused by a faulty battery charging unit.
BP’s St James Square headquarters has been blockaded with a series of containers, forcing the company to advise workers to stay home. The five containers, weighing about a tonne each and containing Greenpeace activists with supplies, have been placed across the building’s main entrances, and along with this action, a team of climbers with banners have effectively closed the offices.
Specialist insurer Beazley has launched a new marine cyber insurance product to meet the rapidly developing needs of vessel owners and operators. Beazley Cyber Defence for Marine provides insurance for physical damage and loss of hire should a cyber incident impact a vessel’s operational capabilities. Included as part of the product are risk management services designed to reduce the likelihood of a cyber incident occurring and demonstrate compliance with forthcoming International Maritime Organization (IMO) guidelines.
Insurance prices around the world have seen a further rise in the first quarter of 2019 according to the latest Global Insurance Market Index from Marsh. Average commercial insurance prices increased 3% in Q1 2019, the largest increase since the survey began in 2012. The Q1 2019 figure also reveals a broader pattern since it represents the sixth consecutive quarter of average commercial insurance pricing increases.
Almost half of organisation’s mobile and remote workers have knowingly put corporate data at risk of a breach according to a survey published by data storage solutions provider Apricorn. The research found that 89% of organisations surveyed have experienced a data breach, and that human error is still the prevailing cause.
Aon's reinsurance business and Guy Carpenter have entered into a partnership with The Institutes RiskStream Collaborative to streamline the reinsurance placement process through the use of distributed ledger technology. Along with industry partners including RenaissanceRe and Everest Re, the group has successfully tested a proof of concept to digitally and securely distribute submissions and receive quotes using distributed ledger technology. The project was built on RiskStream Collaborative’s Canopy framework and made extensive use of ACORD data standards.
Half of the 340 insurance brokers taking part in a survey about the future say they are worried about it. Conducting their survey in April this year, the Society of Insurance Broking (SIB) survey suggests that 94% of brokers say gaining the trust of customers is now more important now than ever.
Over a third of UK companies have no whistleblowing system in place -- and the UK has a more firmly entrenched whistleblowing culture than many other countries. This is according to a new study published today by EQS Group. The Whistleblowing Report 2019, which was conducted with the University of Applied Sciences HTW Chur in Switzerland, sought the views of 1,392 companies across the UK, France, Germany and Switzerland.
Charles Taylor InsureTech is today launching a suite of digital insurance solutions designed to address issues faced by brokers and insurers with key data being kept in multiple locations. Smartix is new to the UK market and is an intuitive, scalable portal that allows insurance businesses to transact online, with key features being speed to market and the agility to make alterations to an inflight programme.
A new guide to terrorism insurance has been launched by the British Insurance Brokers’ Association and Pool Re, specifically designed to support brokers’ understanding of this risk class, and ultimately, to increase take-up in this class. Terrorism threat vectors have changed dramatically since the IRA attacks of 1993 that led to the establishment of the pool, with the weaponising of vehicles, lone-wolf attacks more prevalent today, and the threat of chemical and biological and cyber attacks on the rise. The nature of today's threat means terrorism risk is no longer just a problem for organisations in high-profile areas, towns or buildings.
BIBA has entered into a partnership with networking platform, Insurercore, to deliver two new initiatives to brokers. Under the new initiative, brokers will be able to find markets to write their risks and to source underwriters with the necessary capacity. They will also be able to find technological solutions to the day-to-day issues they face in their businesses
The gender pay gap across the insurance sector has narrowed by a small margin in the last 12 months, according to analysis by the Chartered Insurance Institute. Analysing data from insurers, intermediaries, loss adjusters, financial advisers and other third part insurance providers, the organisation says that, on the whole, there has been a slight improvement in the median pay gap from 24% recorded in April 2018 to 23.2% one year later, with the most significant improvements found among financial advice firms and loss adjusters.
The costs to businesses of failing to support employees with mental health issues have been examined in a body of work carried out with QBE. The findings point to a mixed picture when it comes to understanding the issues and their impact, as well as the best way to address the problem. The research, carried out by Opinium in an online survey of 502 UK senior decision makers and a public survey of 1,300 employees, found that 40% of the senior decision takers had experienced a loss of business as a result of employees continuing to work while experiencing mental health problems.
Hiscox has upgraded its Security Incident Response (SIR) product to include additional protection for business integrity risks including corruption and fraud. The new SIR policy also includes cover for expenses incurred by a business when dealing with an insured event.
Originally launched in 2017, the policy is designed to support businesses in the management of a range of security and crisis events from the impact of terrorism, through to extortion risks. The addition of business integrity risks to the policy is a response to the growing threat to multi-national businesses from risks such as bribery, agent misconduct, contract and procurement fraud, embezzlement, social engineering and money laundering.
Hiscox has upgraded its Security Incident Response (SIR) product to include additional protection for business integrity risks including corruption and fraud. The new SIR policy also includes cover for expenses incurred by a business when dealing with an insured event.
Originally launched in 2017, the policy is designed to support businesses in the management of a range of security and crisis events from the impact of terrorism, through to extortion risks. The addition of business integrity risks to the policy is a response to the growing threat to multi-national businesses from risks such as bribery, agent misconduct, contract and procurement fraud, embezzlement, social engineering and money laundering.
The Association of British Insurers has reiterated its call for access to anonymised breach data from the Information Commissioner's Office. Director of general insurance policy at the association, James Dalton said a redoubling of efforts was needed to enable access to the necessary data for the good of the insurance industry.
Launching a major, long-term strategy to tackle flooding and coastal change, Environment Agency Chair, Emma Howard-Boyd has said “we cannot win a war against water” by building higher flood defences and called for a new approach to ensure communities are resilient to the threat of flooding posed by climate change.
Insurtech investors worldwide executed the highest number of transactions, the highest number of property/casualty transactions, and the highest volume of Series B and Series C funding rounds during the first three months of 2019, according to figures from Willis Towers Watson.
Beazley has appointed Richard Montminy as global head of the company’s property division. Montminy has over three decades of experience in commercial property insurance in senior underwriting and broking roles. He joins the company from Zurich North America where he most recently served as head of property for the US commercial insurance operation.
Lloyd’s is to invest in cloud-based commercial insurance platform, Layr, following its successful trial in the Lloyd’s Lab, which last week welcomed a second cohort of 12 insurtech start-ups. The Atlanta, Georgia-based firm participated in the first cohort of the Lloyd’s Lab to test their cloud-based solution for providing faster access for small businesses looking to purchase liability insurance.
General & Medical Group has launched professional football player insurance designed to cover players who receive an irreparable injury which could damage their future and end their football career. The Elixir Career Ending Sports Insurance includes cover for permanent and temporary total disability, catastrophic injury and accidental death, as well as access to 24/7 counselling and information.
The last time the UK lasted a week without coal-powered electricity was in 1882, but the National Grid Electricity System Operator (ESO) has confirmed the milestone in decarbonisation – with 13.24 on Wednesday 8th May marking the moment that the last coal-powered generator came off the grid, making it exactly a week of coal-free production.
A total of 2,600 shops and stores fell into insolvency in 2018, following 1,400 closures in 2017. The number of business failures of large retailers also rose -- particularly in the textiles and footwear segment due to unseasonal weather conditions, poor buying patterns and increased import costs, according to a report from trade credit insurer, Atradius. It forecasts a further increase in retail insolvencies of 5% this year alongside a deeper deterioration in profits. The current gloomy climate for retail has led experts at Atradius to downgrade its performance outlook of the sector from ‘fair’ to ‘poor’.
RSA has reorganised its Global Risk Solutions business into five industry practice areas:
rail, chemical, food and beverage, real estate and renewables. Four of the practice leader appointments were made internally, with Steve Medhurst becoming global rail industry practice leader; Peter Sweet now leading the real estate practice; Colin McPhie in renewables and Mike Smith in the chemical practice. Alan Midson, who recently joined RSA from JLT, is the insurer's new food and beverage practice leader.
Food manufacturers are being warned to address risk management protocols as African swine flu continues to devastate China. The disease is thought to have affected almost half of the country's 430 million pigs and could soon impact global pork prices. RSA’s food and beverage practice leader, Alan Midson said supply chain integrity is key to avoid further spread of the disease and mitigate pandemic risk.
A group action lawsuit, brought on behalf of 235,000 Brazilian individuals and organisations, including municipal governments, utility companies, indigenous tribes and the Catholic Church, has been served on BHP Billiton. The Anglo-Australian mining conglomerate ‘knew of the risks’ surrounding the deteriorating condition of a Brazilian dam in the years prior to its deadly collapse in 2015, yet were ‘woefully negligent’ in its duty to prevent the catastrophe.
The second Global Governance FTSE 100 Index ranking Britain’s largest publicly listed organisations’ compliance and conformance with the UK Modern Slavery Act (MSA) (2015) and good practice in human rights has been released placing Marks & Spencer Group top, Tesco second and British American Tobacco third.
A consultation has been opened to gather views on how best to tackle the challenge of protecting internet connected devices in the home. Announcing the plans today, digital minister, Margot James said the government is focused on ensuring that products have security features built in from the design stage and not bolted on retrospectively.
Lloyd’s of London has today unveiled a new strategy for modernisation, aimed at simplifying access to, and lowering the cost of doing business with the world-famous insurance market. The plans include the splitting out of complex risks from more frequent and straightforward transactions; with the latter to be placed through the new Lloyd’s Risk Exchange “in minutes” and “at a fraction of today’s costs”.
Analysis of financial results from 2018 suggests the world's largest reinsurers remain resilient in the face of two years of considerable losses due to natural catastrophes. The Aon’s Reinsurance Aggregate (ARA) report, which analyses the results of 23 major reinsurers representing about half of global non-life reinsurance premiums and a large majority of the life reinsurance premiums, cited total capital deployed as U$233bn as at 31 December 2018, a reduction of U$13bn, or 5%, relative to the prior year.
A report into cyber attacks suggests the UK technology and manufacturing sectors are the two industry sectors most targeted by cyber attacks, and that the most common source of these attacks is China. Attacks on the technology sector accounted for almost half of all incidents this year, up from a quarter in 2018. NTT Security’s 2019 Global Threat Intelligence Report suggests that attacks on manufacturing businesses accounted for about half of all cyber attacks in the UK last year, so this year’s fall to a fifth will have been welcome respite.
Insurance industry experts Stephen Catlin and Paul Brand have formally unveiled their international specialty insurer and reinsurer, Convex Group, with initial capital of US$1.8bn, drawing down US$1.6bn to commence business. Designed for “the evolving insurance industry”, Convex will underwrite insurance and reinsurance for complex specialty risks across a diversified range of business lines in London and Bermuda, with a management team featuring some well-known industry names including Benjamin Meuli (CFO); Robina Malik (GC); and Adrian Spieler (COO). Doug Howat is chief underwriting officer in insurance, while Matt Paskin heads up reinsurance underwriting. Mark van Zanden is head of portfolio optimisation.
An international study carried out by Hiscox shows no improvement in corporate defences despite soaring cyber losses, and an increasing number of attacks. Some 61% of public and private sector organisations in the US, UK, Belgium, France, Germany, Spain and the Netherlands have suffered one or more cyber attacks in the past year (up from 45% in the previous year).
Beazley has partnered with a consortium of Lloyd’s insurers to deliver a reputational risk solution specifically for US-domiciled organisations with up to US$5bn in revenue. The Custodian Consortium offers substantial limits with additional capacity initially provided by Tokio Marine Kiln and RenaissanceRe as well as Beazley’s smart tracker syndicate 5623.
Projects to protect vulnerable girls from trafficking in Ethiopia and improve care standards for victims of modern slavery in Nepal are among those receiving part of a £4 million funding boost from the Home Office. The Modern Slavery Innovation Fund (MSIF) has awarded up to £800,000 each to projects in Mauritius, South Africa, India, Nepal and Malaysia, as well as to the United Nations University.
The Department for International Trade has appointed a 'cyber security ambassador' to promote the cyber capability of British firms in international markets and to capitalise on the growing demand among governments around the world to safeguard critical national infrastructure.
The National Counter Terrorism Security Office has announced the availability its ACT Strategic initiative, created to help businesses explore ways of preventing, managing and recovering from a terrorist attack. ACT Strategic is aimed at those responsible for writing policies and procedures or strongly influencing them. The events themselves are aimed at 20-30 delegates from a range of organisations and business sectors. Conducted as a discussion-based exercise, delegates will be faced with a series of questions and dilemmas to resolve, both individually and collectively.
The latest figures from the Organisation for Economic Co-operation and Development shows rising investment in UK amid an uncertain economic global outlook, and in defiance of concerns around Brexit. The data shows the total value of foreign investment stock into the UK by the end of 2018 increased by 5% to $1,890bn, making the UK the leading destination for FDI in Europe, and the third most significant in the world, behind the US and China.
Climate change protesters have glued themselves to the London Stock Exchange and climbed on top of another DLR train on what Londoners will welcome as the final day of a series of bizarre protests around the capital, including a semi-nude protest in parliament.
Platforms and aggregator sites face an uncertain risk landscape online following the passing into law of the new EU Directive on Copyright in the Digital Single Market, in which a section known as Article 13 holds tech firms responsible for material posted without copyright permission. The tech firm must either make a “best effort” to get permission from the rights holders or quickly remove it (although sharing memes and GIFS will still be allowed under the new laws).
While artificial intelligence provides underwriters with the opportunity to improve processes, increase efficiency and remain competitive, it also presents them with the challenge of navigating a completely new risk environment in terms of servicing clients. This dual challenge was the impetus behind two pieces of research conducted by the University of Surrey and Lloyd’s of London to explore these trends in more detail.
The Foreign Office has changed its travel advice to Sri Lanka to advise against all but essential travel, in light of the ongoing security operation and heightened risk of terrorism in Sri Lanka following the attacks on Easter Sunday.
The government has updated its guidance detailing amendments to UK data protection law in the event that the UK leaves the EU without a deal. The EU (Withdrawal) Act 2018 (EUWA) retains the GDPR in UK law. The fundamental principles, obligations and rights that organisations and data subjects have become familiar with will stay the same.
Energy minister, Claire Perry said the UK should be proud of its climate efforts, and that the UK was a world leader in tackling the issues around climate change. Responding to the recent demonstrations in London, Perry said protesters might in future consider expressing their views "without undermining the consensus" needed for progress.
The winners of the 2019 Business Continuity Awards will be announced on 6th June at a Gala Dinner and Awards Ceremony at the London Marriott Hotel, Grosvenor Square. This must-attend annual event brings together guests from across the industry to celebrate and reward the year's greatest successes.
An increase in migrant stowaways and labour exploitation are among the current key challenges threatening global supply chains, according to a BSI report published today. Read on for more on the top five supply chain risks for 2019, as well as a list of the key threats from 2018...
Union flags on Downing Street and Foreign Office Buildings will be flown at half mast today as a mark of respect for those who lost their lives in the terrorist attacks in Sri Lanka over the weekend. A series of suicide bombings in three high profile churches and three luxury hotels resulted in some 300 deaths, including several British nationals, according to the most recent reports Tuesday morning.
The Competition and Markets Authority has called for a shake-up in the UK audit market to address “serious competition problems” in the industry. It says legislation is needed to address both the vulnerability of the industry to the loss of one of the Big Four, and current inadequate choice and competition.
As they continue to risk alienating the very people they need to support their cause, environmental campaigners continue to cause disruption in London, on the fourth day of protests in the capital. The group responsible for organising the demonstrations is said to be setting its sights on Heathrow Airport tomorrow, Friday, potentially disrupting Easter holiday plans for thousands of people over the weekend.
Global law firm Norton Rose Fulbright has advised Equitas in its successful appeal from an arbitration award, marking the first reinsurance case before the courts to consider the presentation of reinsurance claims arising out of mesothelioma liabilities involving the so-called Fairchild enclave.
Firms across the UK are to benefit from a further £200m in government support to ensure that they can access the finance they need to grow. As the UK leaves the EU and the relationship with the European Investment Fund changes, the government has said it remains committed to ensuring that innovative firms can access the finance they need to grow.
A considerable 85% of workers worldwide have said they would prioritise a role that offered flexible working options. Already some 50% of the 15,000 respondents to a new survey confirmed that they work outside their company’s main location for at least half the working week.
An investigation is underway in Île de la Cité in Paris after a devastating fire engulfed one of the capital’s most historical and beloved buildings, the Cathédrale Notre-Dame. According to local media, the police are working on the assumption that the fire was accidental and possibly related to ongoing renovation works at the site.
Willis Towers Watson has joined forces with the Royal United Services Institute to support its Modern Deterrence Programme, which investigates the changing threat to Western societies. The Willis Research Network will engage with the four-year long RUSI Programme to support a platform and research hub for governments, the private sector and civic organisations to investigate modern deterrence.
The Risk Management Awards 2019 are open for entries. Celebrating excellence in the field of risk management, these awards are the pinnacle of achievement in your sector – recognising the people, products and programmes that have contributed the most to the sector over the past year.
Sometimes the most significant risks are the most prosaic. When we think about home insurance, we think about burglary, storms and fire more than leaky pipes, and yet escape of water is a huge and increasing problem, which is responsible for around a quarter of all home insurance claims (around £650m a year). The cause is almost always poor workmanship – and yet the problem is difficult to address, because by the time the problem becomes apparent, it is too late to make sure the individual who is responsible carries the cost.
Extinction Rebellion, a campaigning group, has closed several London roads creating traffic congestion across the capital. Staring at 11 am, the ‘International Rebellion’ has caused blockages at Oxford Circus and Marble Arch, as well as targeting the headquarters of Shell. Coordinated action over 80 cities in more than 33 countries is reported to have occurred as the activists call on governments to take decisive action on the climate and ecological emergency. In London, the protests have already resulted in damage to the Shell buildings at Waterloo.
The Chartered Insurance Institute has announced that the second round of its Professional Focus conferences will take place this spring. The CII’s centralised CPD proposition for the general insurance sector will deliver through seven events across the UK a diverse range of key trends and topics for the sector, including terrorism, cyber and blockchain.
The Information Commissioner’s Office has opened a consultation on the standards that online services must meet to protect children online. ‘Age appropriate design: a code of practice for online services’ sets out the standards expected of those responsible for designing, developing or providing online services likely to be accessed by children and which process their data.
Headlines have been made recently with a greater government recognition of the role the social housing sector can play in building much needed affordable homes in the UK. Housing associations fall into one of two categories. The first is the smaller community-focused housing associations, whose primary focus is to provide homes and often small-scale developments. The alternative model is the larger, commercially savvy organisation that often evolves from a merger. These providers deliver on their social purpose but it is fair to say they have a greater appetite (and capacity) for risk. Both of these models have customers at the heart of what they do. They both offer quality developments and good customer service but in different ways, and to different markets. It is fair to say there is no such thing as a ‘typical’ housing association with a ‘typical’ risk profile!
Aon has deployed artificial intelligence technology to help it uncover trends from thousands of insurance documents, unlocking otherwise trapped insight into the underwriting process across all its major lines of business. The AI technology, Groundspeed harvested data from 170 million data points including limits, deductibles and exposures, and representing US$142bn in total incurred losses and US$1.7trn in total insured value. It uses machine learning and natural language processing to help identify underlying causes of claims, industry benchmarks and losses versus premium – driving opportunities to expand coverage and help businesses reduce their total cost of risk. It can also be used to inform new risk transfer solutions and treaties aimed at reducing premium for clients by developing a better understanding of loss trends within different lines of business and risk segments.
The UK’s listed status application has been agreed by European Union member states after it met the animal health and biosecurity assurances required to export live animals and animal products. This confirmation is part of the EU’s published no deal contingency planning – without it, exports of animal products and most live animals to the EU could not take place in the event of a no-deal exit from the EU on April 12.
Emerging technologies such as drones, virtual reality, autonomous vehicles and blockchain are starting to move out of the laboratory and into real life applications as our ability to transmit and crunch vast amounts of data expands. New technology offers so many opportunities for organisations to fulfil their objectives by improving processes, reducing costs, enhancing services and developing innovative new solutions. The potential benefits for firms, individuals and economies are huge. But all of this comes with risk.
As of today, CFC’s eHealth insurance product will be available to digital healthcare organisations in the UK. Launched initially in the US, the policy is tailored specifically to businesses operating in the digital health sector. CFC’s policy provides affirmative cover for bodily injury arising from both the advice provided by companies and practitioners as well as bodily injury arising from technology failures and cyber events.
The Swiss Re Institute has today said that it expects losses from secondary perils to rise due to growing assets in areas exposed to more extreme weather conditions. It says the last two years’ cat losses demonstrate the potential for growing devastation caused by these secondary perils. Global insured losses from natural catastrophes in 2018 were US$76bn, over 60% of which resulted from secondary perils. Combined insured natural catastrophe losses for 2017-2018 were US$219bn, the highest ever over a two-year period.
In theory the latest EU legislation will help reduce pollution by forcing carmakers to produce low emissions vehicles into their fleets, and give the public greater options to purchase them. The devil is in the detail however, and in this case it is in how the scheme has been set up.
An independent group set up to oversee the ethical considerations of Google‘s artificial intelligence innovations has been shut down less than a fortnight after it was launched. The Advanced Technology External Advisory Council (ATEAC) was due to look at the ethics around AI, machine learning and facial recognition. However, there had been outcry over the appointment of Kay Coles-James, who is also President of American conservative think-tank, The Heritage Foundation.
Research published today on the growing cyber threat shows the financial sector as the number one target, knocking business and professional services off the top spot. The finance industry in EMEA experienced a sizeable increase in web attacks, almost doubling from 22% to 43% over the last year, underlining its growing vulnerability.
In the second largest financial penalty for AML controls failings ever imposed by the UK’s regulator, the Financial Conduct Authority has fined Standard Chartered Bank £102,163,200 for breaches in two high risk areas of its business: the UK Wholesale Bank Correspondent Banking business and its branches in the United Arab Emirates.
Insurance claims for subsidence have risen sharply following last year’s heatwave, according to the Association of British Insurers. Commercial claims rose by more than 200%, while subsidence relating to domestic properties bumped up claims by around 400% in volume and 350% in value, the highest quarterly rise since records began.
The UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have agreed two Memoranda of Understanding to ensure continuity once the UK leaves the European Union. Covering trade repositories and alternative investment funds, the two agreements will ensure cross-border cooperation between the two organisations to provide certainty to businesses post-Brexit.
A coalition of activist groups, charities and the public is bringing a case against Shell. Friends of the Earth Netherlands, leading the campaign, sent a notice of liability last year urging Shell to issue a planned reduction in its oil and gas activity, to help prevent climate change and start acting in line with the goal of the Paris agreement.
A major new UN-led report, involving more than 60 international organisations, warns that a comprehensive overhaul of the world’s financial system is necessary, if governments are to honour commitments to tackle critical issues, such as combatting climate change and eradicating poverty by 2030.
On the back of this week’s announcement of Sungard Availability Services’ Chapter 11 filing in the US, the global recovery services provider has said it expects customers to be unaffected by the capital restructure that will see the company’s debt reduced by two-thirds, following an agreement with creditors.
Ongoing losses and unprofitability in power, mining and renewables have contributed to a decrease in underwriting capacity in downstream energy, Willis Towers Watson has said. In its latest Energy Market Review, the advisory said market capacity appears to be fluctuating, with a marginal increase in the upstream market (from US$7.7bn to US$8.1bn) but also the first decrease in the downstream market (from US$6.8bn to US$6.2bn) since the aftermath of 9/11.
Arch Insurance has completed the acquisition of Axiom Underwriting, following its initial purchase of a 60% share in the business in 2015. The acquired business, which generated £20m GWP in 2018, will become part of the recently formed Arch UK regional division, focused on commercial property, casualty, motor, professional liability, personal accident and travel. Twenty employees will move to Arch.
BSI has expanded its cyber security portfolio with the acquisition of California-based AppSec Consulting. Established 14 years ago, the cyber security firm services a wide range of clients across the country. The business was initially focused on web application security, penetration testing, and developer training and has since diversified into providing strategic cyber security, data privacy, and a range of governance, risk and compliance advisory services.
Commercial property MGA, European Property Underwriting has launched Solutions, a package of covers specifically designed to address the challenges that brokers face in placing cover for unorthodox property owner risks.
The Financial Conduct Authority has today taken over the role of regulating the claims management industry. From now on, all claims management companies (CMCs) in England, Scotland and Wales will have to demonstrate they meet and maintain minimum standards set by the UK’s financial watchdog.
Business standards company, BSI has released a publically available specification, PAS 202:2019 'Sharing economy - operation of an online platform', to help accelerate the development of the sharing economy. It specifies the requirements for operators of online platforms to effectively match the assets and skills of providers with customers and users.
The Financial Conduct Authority has published its final instruments and guidance that will apply if the UK leaves the EU without a deal or an implementation period. The final instruments are largely unchanged from the near-final versions, which were published in February. The most significant change is that the instruments now commence on ‘exit day’, rather than 11pm on 29 March. This change reflects the decision made at the European Council on 21 March, as well as the changes made by the European Union (Withdrawal) Act 2018 (Exit Day) (Amendment) Regulations 2019.
Goldman Sachs International has been fined £34,344,700 by the Financial Conduct Authority for failing to provide accurate and timely reporting relating to 220.2 million transaction reports between November 2007 and March 2017.
JLT has launched its new cyber insurance policy, Real Estate Assurance for Cyber Threats (REACT) to address uninsured gaps in the property market. This exclusive solution is designed for property owners, managers and investors, including pension and investment funds.
Don’t expect an easy read. This book is dense – in its writing, its footnotes (43 pages of them) and in its information. It is, however as gripping as any thriller and full of insights that have universal use. Split into three parts, the first two, dealing with the concept of war and the way wars are fought, are revealing if somewhat tangential to the day-to-day job for the majority of us. The lesson is that things move fast – and that comes as no surprise, but it is illustrated by a well-researched account of past wars and past errors. Author Freedman, the Emeritus Professor of War Studies at King’s College, notes just how wrong predictions of the next threat have been.
“Restoring trust is the greatest moral challenge of our time.” These are the words of Richard Edelman, CEO of the eponymous global communications firm, which this month released its annual Trust Barometer survey. It showed that trust has changed profoundly in the past year, with “my employer” emerging as the most trusted institution globally; whilst trust in peer-to-peer platforms such as social media has declined significantly. But perhaps one of the most important findings was on the importance of trust itself, its significance to business and how it can be quantified.
The National Cyber Security Centre has stated that it can provide only limited assurance that the long-term security risks can be managed in Huawei equipment. Huawei is subject to detailed and formal oversight, led by the NCSC, in part because of NCSC’s questioning of the standard of cyber security the company can provide. There is no suggestion, however, that the actions are deliberate.
Neon is to lead the newly established London Political Risks Insurance Consortium, with MS Amlin a joint agreement party. Driven by Neon’s recently promoted head of specialty, Nicholas Robinson, the new initiative will respond to increased levels of political uncertainty across the globe.
The Bank of England has announced plans for a new set of rules on how it wants banks, insurers and investment companies to manage the financial risks of climate change. Speaking at a conference on sustainable finance hosted by the European Commission in Brussels, Governor Mark Carney said that companies will be “expected to embed fully the consideration of climate risks into governance frameworks, including at board level”.
The total cost of crime and crime prevention for retailers was £1.9bn last year, up 12% from the previous year (£1.7bn), according to figures from the British Retail Consortium (BRC). The figure comprises £900m direct cost from retail crime, and £1bn spent in efforts to prevent crime.
Lloyd’s of London plans to address concerns over workplace culture at the insurance market following reports of sexual harassment and bullying. Claims by 18 women featured in a Bloomberg Businessweek article last week included descriptions of an atmosphere of “near-persistent harassment”.
Over four in ten businesses in the UK are unaware of the risks posed by invoice fraud, despite these scams costing firms almost £93m in 2018. Research by UK Finance found that there were 3,280 invoice fraud incidents over the year, with an average loss per case of over £28,000.
Insurance payouts that provide a lifeline to help businesses struggling to cope with bad debts are at their highest level since 2009, with the equivalent of 50 new claims made every day, according to new figures from the Association of British Insurers.
Many large corporations are at risk of failing to meet pledges to reduce their impact on tropical deforestation according to environmental group Global Canopy. An assessment of the 350 most influential companies in forest-risk commodity supply chains (covering palm oil, soy, cattle, timber and pulp and paper), found that 40% of companies did not have any commitments in place to address deforestation.
The CII has produced an updated guide for the compensation of claims in the event of a riot. The new guide has been published to make the application of the RCA 2016 as clear as possible. Large-scale riots are extremely rare events in Britain but can be costly when they occur; the 2011 riots resulted in roughly £200m in claims paid out by insurers.
Companies are increasingly cautious over taking risks in their supply chain, with fears over their level of dependence on suppliers and sourcing from high-risk countries dominating their thinking. This is among the findings of a report published today by Cranfield School of Management and Dun & Bradstreet. It looks at the level of perceived supply chain risk faced by European companies with international supplier relationships.
German chemical giant Bayer‘s share price plunged on the news that subsidiary Monsanto’s Roundup weedkiller was found by a Californian jury to be a "substantial factor" in a plaintiff’s cancer. The jury reached a decision in this first phase on causation, and will consider next the question of liability in phase two before there is a final verdict in this case.
Mactavish has challenged the Association of British Insurers and insurance providers to guarantee that flaws it says it has identified in cyber policies will never be used to block claims payments. Chief executive officer at Mactavish, Bruce Hepburn has said some insurers and brokers were quick to denounce the consultancy’s findings in “dozens of ‘off-the-shelf’ cyber insurance policies”.
UBS has been fined £27.6m by the Financial Conduct Authority for failings relating to 135.8 million transaction reports between November 2007 and May 2017. The FCA said UBS failed to ensure it provided complete and accurate information in relation to approximately 86.67m reportable transactions. It also erroneously reported 49.1m transactions to the regulator, which were not, in fact, reportable. Altogether, over a period of almost a decade, UBS made 135.8m errors in its transaction reporting, breaching FCA rules.
The 2019 Business Continuity Awards finalists have been announced. Now in its 21st 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.
Drivers planning to take their vehicles to the EU, including the Republic of Ireland, should continue to plan for a no-deal Brexit and make arrangements to have a Green Card in time for when they travel, the Association of British Insurers has said.
The PRA and FCA have hosted the first meeting of the Climate Financial Risk Forum (CFRF) with the objective of sharing best practice in responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers to discuss issues surrounding climate change and society’s response to it as it presents financial risks that are relevant to the PRA’s and FCA’s objectives.
Cat risk modelling firm AIR Worldwide has estimated insured losses due to wind from Winter Storm Eberhard will range from E900m to E1.5bn, the majority of which are expected in Germany. Winter Storm Eberhard follows on the heels of Freya/Bennet, which affected Wales and England on 3rd March, bringing strong winds and some flooding, then impacted Germany and parts of France and Denmark through to 5th March Laura/Cornelius, which affected the UK and Scandinavian countries later the same week; and Dragi, which affected Northern Europe just before Eberhard.
As the reality show that is British politics continues to play out, outside of the corridors of power more arguments are being had about what should happen next, with the Association of British Insurers arguing that a no-deal outcome would be an “unforgivable act of economic and social self-harm”. The CBI, meanwhile, argues that the country is facing a national emergency as they called on Prime Minister Theresa May to change her approach to Brexit. Then, the People’s Vote march reconvened in Central London to voice its varying array of concerns. The Prime Minister certainly got one thing right when she sensed that the public had had enough.
A new MGA has been launched to address the threat of cyber attack among SMEs. Headed by company partner and co-founder Dennis Culligan, capacity for the cover is being provided by Hiscox. The online MGA will target UK businesses both directly and via strategic partnerships with brokers and intermediaries.
Aon has partnered with US-based AI company, Zesty.ai, in an alliance that will support underwriting decision making through access to more than 130 billion data points on buildings and their surroundings. Using satellite and aerial imagery, the data will help enable granular risk analysis and informed pricing without physically setting foot in the area.
Following the rejection last night of a revised version of the EU Withdrawal Agreement, the government has this morning published details of the UK’s temporary tariff regime under a no-deal scenario. It says British businesses would not pay customs duties on the majority of goods when importing into the UK if we leave the European Union without an agreement.
It is now illegal to fly a drone within 5km of an airport, with major penalties for those who break the law, as new legislation to extend the no-fly zone around airports comes into force today. This change to the law is brought in ahead of the new Drones Bill, which will give police significantly increased powers to deal with the illegal use of AUVs.
The Chartered Insurance Institute and SAMI Consulting have launched a research project into the impact on insurance of the digitisation of medical records. As more medical records are digitised and health data is collected on apps, wearable tech and voluntarily offered to health service providers; there is a wealth of underwriting data available to insurers. This new research project will explore how this can be used for the benefit of the customer to provide greater access to insurance and protection products.
A theme park operator has been fined £65,000 after nine passengers were injured and taken to hospital when a train on one of its rollercoasters derailed and crashed.
The incident, which took place at M & D’s Theme Park in Motherwell June 2016 involved a rollercoaster which crashed from a height of five metres into an area occupied by taxis and bikes.
The Association of British Insurers (ABI) is urging companies that have bolstered inventories of goods and raw materials ahead of Brexit to check that they remain fully insured. The association is concerned that firms that are said to be "stockpiling" may have overlooked the possible insurance implications and is urging them to check the terms and conditions of their commercial cover and, if needed, speak to their insurer or insurance adviser to ensure they have sufficient cover in place.
The government has announced up to £56m in funding for research into the potential health effects of climate change, including air pollution, antimicrobial resistance and global pandemics.
Climate change leads to more extremes of hot and cold weather, which can have a serious impact on the health of the nation. Pollution can cause chronic conditions such as cardiovascular and respiratory diseases, as well as lung cancer, leading to reduced life expectancy.
Business secretary Greg Clark said today, Monday, that a new, more powerful regulator is to replace the current Financial Reporting Council in a move that will "transform the audit and accounting sector". The new Audit, Reporting and Governance Authority was recommended by the Sir John Kingsman's Independent Review submitted in December 2018. Among the shortcomings identified in the review were a lack of transparency and issues with enforcement activity.
Bibby Financial Services has launched its digital insurance solution, Coverly, targeting contractors and small businesses looking for flexible business cover, which, it says provides a model to replace one that doesn’t work for modern business.
The winners of the 2019 Commercial Insurance Awards were announced last night at a gala dinner and ceremony hosted by comedian Kerry Godliman at the Waldorf Hilton in London. Congratulations to everyone shortlisted and particularly to...
Ahead of the next round of UK-EU talks this weekend, commercial insurance advisory, Mactavish has reiterated its warning to firms to consider more carefully the risk that individual directors could be personally exposed to legal action because of traditional limitations applied to D&O. It is urging companies to ensure their Brexit plans are comprehensive and clearly documented as they may be needed "to defend themselves against lawsuits bought by disgruntled investors, as well as to ensure their insurance remains valid".
Zurich has entered into a partnership with Riskmethods to provide its commercial customers with new supply chain risk management services using the Riskmethods AI-based technology to help customers identify, assess, mitigate and transfer risk related to their supply chains.
Lockton has hired Philip Corrigan to the role of regional COO as it looks to expand its business and expertise across APAC. Corrigan will join a growing team in the APAC offices on the insurance broker, which has bases and partnerships in China, Malaysia, Hong Kong, Singapore, Thailand, the Philippines and South Korea.
Hayley Spink has been appointed head of global operations at Lloyd’s. Spink joined Lloyd’s in 2007 and has served in a variety of operational leadership roles where she has implemented and overseen Lloyd's operations all over the world, including in Dubai, India, China, Malaysia, Colombia and Mexico.
Research from Capgemini suggests that financial services firms are lagging behind in digital transformation compared with other industry sectors. The sector reports falling confidence in its digital capabilities and a shortage of the leadership and collective vision needed to shape the digital future.
Aon is partnering with software company Skytek to provide real-time monitoring of insurers’ marine risks and identify accumulations for enhanced underwriting and reinsurance programmes, using technology which emerged from a Skytek/Aon research initiative with the European Space Agency.
The Met Police Counter Terrorism Command has launched an investigation after three suspicious packages were received at buildings in London today, Tuesday. It is treating the incidents as linked. According to a Met Police statement, the packages, all A4-sized white postal bags containing yellow Jiffy bags, have been assessed by specialist officers to be small improvised explosive devices. These devices, at this early stage of the investigation, appear capable of igniting an initially small fire when opened.
Pool Re has today announced the completion of its £2.3bn retrocession programme with more than 50 international reinsurers and led by Munich Re. The three-year programme is one of the largest reinsurance deals in the world, and the largest ever terrorism risk placement. It covers property damage arising from CBRN attacks; those arising from cyber-triggered terrorist losses; as well as conventional terrorist acts.
By customising an active shooter plan that focuses on prevention, training, feedback and post-incident protocols, employees will be mentally and physically prepared to react to violent threats, according to RIMS new report.
The ARAG Group is to launch operations in the Republic of Ireland through the acquisition of DAS Legal Expenses, part of the ERGO Group. ARAG and DAS reached agreement earlier this month on the business transfer and retention of the present staff.
The Environment Agency has published a new economic assessment to aid planning for flooding and coastal risk management over the next 50 years. The study uses climate change, population and mapping data to set out future flood risk scenarios with the aim of assessing the most effective funding allocation.
JLT Specialty and Allianz Global Corporate & Specialty have created a corporate reputation product for SMEs in the entertainment, hospitality, food, beverage, travel, communication and technology, education and healthcare sectors. An industry first, Reputation Protect Plus provides coverage against the loss of net operating profit from a reputational crisis, combined with a crisis response service to companies that rely heavily on consumer trust and are particularly vulnerable to reputational damage. Insureds are also provided with comprehensive reputation analysis, overseen by MediaTenor International, to identify the potential risks to their business in order to develop response and prevention strategies.
A significant shift towards commercial lines is occurring in the insurtech space, with a focus on data and analytics for risk selection and pricing, specialist insurance systems and claims. This is among the findings of research conducted by London-based insurance advisor, Oxbow Partners, which reveals the 25 technology-led businesses it believes to be well positioned to have a major impact on the European insurance industry.
The Financial Conduct Authority has published "near-final" rules and guidance that will apply in the event the UK leaves the EU without an implementation period. Major institutions have planned for all Brexit scenarios for over two years but a grace period will no doubt offer relief in the form of greater regulatory predictability.
Ascent Underwriting has added physical damage cover to its CyberPro product, bridging the gap between cyber and property policies. With additional capacity provided by Munich Re, CyberPro now covers physical and property damage plus debris removal following an insured event
Geopolitical tensions, increasingly protectionist sentiment and ongoing trade disputes are leading to increased uncertainty and risk for multinationals with direct foreign investments, according to a new report from Marsh. The risk adviser says a transition to a more 'multi-polar world order of protectionism' is likely to continue in 2019, with isolationist and protectionist sentiments and practices rising in some counties, halting, at least momentarily, the process of globalisation.
Britain’s state-backed terrorism reinsurer, Pool Re has placed a £75m catastrophe bond, bringing new sources of capital to the terrorism risk market, returning additional premium to the private sector, and further shielding UK taxpayers from the risks Pool Re mutualises.
Trilogy has launched new UK construction product, with capacity provided by Great American International Insurance DAC. The new cover features high policy limits of up to £10,000,000, offering comprehensive cover for most building, civil and engineering trades operating in the UK construction sector.
A number of beer and wine brands sold in the US contain toxic glyphosate, the main ingredient in weed killer, Roundup, according to a new report by the US PIRG Education Fund. The organisation is calling for the popular pesticide to be banned. Its report is published as a San Francisco court began hearing arguments in the first federal civil case over whether Monsanto’s Roundup weed killer causes cancer.
Sixty-three insurtech deals with a total value of US$1.59bn were announced world-wide in Q4, 2018 -- the second-highest quarter behind the exceptional second quarter of 2015, according to figures from Willis Towers Watson. The advisory firm’s latest Quarterly InsurTech Briefing Attributes this rise in investment to the need to manage cyber risk.
Average commercial insurance prices increased by 2% in Q4 2018, according to figures released today by Marsh. Representing the steepest increase since the risk adviser began its index in 2012, it said composite pricing in Q4 increased in all global regions, with the pacific region seeing the biggest hike, of over 10% – a trend which has continued for seven quarters.
The director-general of the Association of British Insurers is expected to issue a warning tonight around the mounting risks of the ongoing Brexit negotiations. Huw Evans is scheduled to address insurers at the association’s annual gala in London, where he will caution that any future arrangement with the EU that required the UK to comply with rules it had no say over could be “weaponised by those in the EU that want to…damage the UK”.
Trade credit insurer Atradius has put in place a team of mental health first aiders. The 13-strong team at the firm’s headquarters have each received specialist training in mental health and employee wellbeing so they can spot the signs and symptoms of mental ill health issues.
Artificial intelligence attracted more funding during 2018 than any other emerging technology, according to analysis from GlobalData. With an increasing application of AI technologies across all sectors of industry, more than 1,900 investors funded 1,000 AI-based companies throughout the year, among them Horizon Robotics, Beijing SenseTime, Zoox, Yitu Technology and Pony.ai.
Despite President Trump’s claims that North Korea will become an “economic powerhouse”, Kim Jong-un’s authoritarian regime has been classified as the world’s most perilous investment destination for business, according to a study carried out by risk analysts at Verisk Maplecroft.
The Department for International Trade has issued an update on trade continuity after Brexit. Nearly half of the UK's trade is currently with the EU; a further 11% is covered by the existing EU trade agreements the government is looking to continue as bilateral deals after Brexit. The 20 smallest of these agreements account for just 0.8% of UK trade. The remaining 40% of trade takes place with other countries.
The market has welcomed a move by the Financial Conduct Authority to issue a final report on its assessment of competition in the wholesale insurance broker market. The FCA said that while it had identified some areas of concern and with scope for improvement, it found no need for the introduction of intrusive remedies.
The government has today published a new code of conduct designed to ensure artificial intelligence and other data-driven technologies used by the NHS are on point, safe and secure; and ultimately to support innovation in the most challenges areas of healthcare, such as dementia and cancer.
If the policing of autonomous vehicles is to be successful, the government will need to provide in-depth guidance to an already stretched judiciary, global law firm Kennedys has warned. In its response to the Law Commission's regulatory framework consultation for the safe deployment of AVs in the UK, Kennedys also raised concerns around a host of other technical and practical issues.
Charles Taylor Adjusting has opened a new office in Belgium with an immediate focus on further developing its property and casualty offering in Europe, building on its recent growth in construction and engineering, PI, cyber and major loss.
Telematics provider The Floow has been appointed adviser to the government on its Uplift Project, which aims to explore how telematics may improve the UK’s position in the motor insurance market, while making insurance fairer, personalised and more transparent for motorists.
Online motor insurance provider Hedgehog has teamed up with Premium Credit to offer premium finance to Hedgehog’s customers in its first year of business. The new entrant is offering motor insurance products aimed at drivers that face higher than average premiums for reasons such as holding points on their licence, a driving conviction or being declined by other insurers because of their postcode.
RMS has released its US Wildfire High Definition Model, to address the need for more granular analytics of wildfire risk across the 48 contiguous American states.Until now, the industry has relied on inadequate zoning and mapping products to evaluate wildfire risk. Recent cat events have highlighted many deficiencies in these tools, including the failure to account for structural vulnerabilities, the inability to highlight areas susceptible to urban conflagrations, the coarse resolution and the lack of probabilistic insight.
UK insurtech saw over US$1bn of investment activity through 2018, up from US$792m in 2017, despite stalling global investment levels, which declined year-on-year by almost half, standing at US$5.7bn for 2018. This is according to business adviser KPMG, whose ‘Pulse of Fintech’ report was published today.
A project to develop artificial intelligence technology for tackling fraudulent insurance claims is one of a number of new programmes set to receive funding under the government’s UK Industrial Strategy. The AI software, being developed by Intelligent Voice, Strenuus and the University of East London will combine AI and voice recognition technology that is said to detect and interpret emotion and linguistics to assess the credibility of insurance claims.
US and European equities rated as controversial underperform their benchmarks according to research conducted by Ossiam into the behaviour of stocks connected with environmental, social and governance (ESG) issues. Results showed that between January 2010 and September 2018, controversial equities in Europe and the US significantly underperformed non-controversial stocks by 7.4% in euro terms and 7% in US dollar terms respectively. This phenomenon is attributed to strong market reactions that penalise stocks as a consequence of controversy rating downgrades. These equities tend to show a slow recovery in price. The research findings are a strong argument for exclusion of stocks with high controversy scores from investment universes.
Mental Health First Aid (MHFA) England has today launched best practice guidance for employers on how to implement mental health first aid in the workplace, following the Health and Safety Executive’s (HSE) recent enhancement of its first aid guidance to clarify the existing need to consider mental health alongside physical health when undertaking a ‘needs assessment’.
Global insurance merger and acquisition activity was up 9pc to 382 completed mergers in 2018. The second half of the year was also the third consecutive six-month period of M&A growth for the first time since 2009. These are among the findings of law firm Clyde and Co’s latest M&A report, which cites the search for scale, technology and regulatory changes among the key drivers for the rise in the number of transactions.
Digital Risks has achieved Lloyd’s coverholder status, following an application sponsored by investor and partner, Beazley. Founded in 2015, Digital Risks developed an entirely online broker offering a range of products focused on emerging risks. All its policies are sold as a subscription model, with existing products backed by Aviva and Tokio Marine HCC.
BIBA has welcomed the granting of Royal Assent that will bring the Counter Terrorism and Border Security Act into UK law, which it says will greatly help businesses and increase resilience. Executive director of the association, Graeme Trudgill said the changing nature of terrorism had left businesses exposed.
Individuals using driverless cars should still not take their eyes off the road, if they could be expected to take over the vehicle at short notice in an emergency, the International Underwriting Association (IUA) has stated. Unless a vehicle is highly automated users should be banned from performing other tasks and legally required to monitor their journey.
The 2018 Counter-Terrorism and Border Security Bill received Royal Assent today. The passing of the bill into law means that Pool Re will be able to cover non-damage business interruption in the wake of a terrorist attack. The amendment makes the UK’s terrorism reinsurance pool the first in the world to extend its cover to include non-damage business interruption losses.
Specialist insurer Beazley has created a new division focusing on cyber and executive risks. The new division, led by Mike Donovan, brings together the insurer’s directors’ and officers’ (D&O) insurance and employment practices liability (EPL) teams. Head of the new division, Mike Donovan said the combined expertise of the new team will address a spectrum of risks that are increasingly hard for companies to manage.
BSI has released a significant revision to the 2010 British Standard for Legionella Risk Control, providing further guidelines for assessing water quality and the risk of Legionnaires disease.
BDO has completed its merger with Moore Stephens, creating the largest UK accountancy and business advisory firm serving the mid-sized market. The merged firm will operate under the BDO brand and as part of its international network, which has has 80,000 people and revenues of US$9bn across 162 countries
Aon has entered into a strategic alliance with global insurtech firm Claim Central to digitise claims management for P/C insurers. Claim Central’s technology digitises the entire property claims process, featuring live video streaming, aerial imagery, real-time chat, customer sentiment measures and digital payments.
ISO has released the official ISO 22301 Draft International Standard for Public Comment (DIS). BSI, as the UK’s National Standards Body, is seeking to consult with continuity and resilience practitioners, managers, and other interested parties to participate in this review aimed at improving this standard.
International reference guidelines for assessing information security controls have been updated to keep pace with the the changing risk. Developed by ISO and the International Electrotechnical Commission (IEC), ISO/IEC TS 27008, 'Information technology – Security techniques – Guidelines for the assessment of information security controls', provides guidance on assessing the controls in place to ensure they are fit for purpose, effective and efficient and in line with company objectives.
Betterview is to partner with Conifer Insurance to deliver property data and analytics to Conifer’s commercial lines underwriting team to assist in the underwriting evaluation process.
The solution uses AI to analyse manned aircraft and satellite imagery of individual risks, factoring in historical weather and other data sources to determine roof condition and various other characteristics necessary to evaluate the risk of future insurance losses.
The Financial Conduct Authority has come to an agreement with The European Securities and Markets Authority and other EU regulators around the exchange of information in the event the UK leaves the EU without a withdrawal agreement and implementation period.
The Financial Conduct Authority has today set out how it will use temporary transitional power in the event of a no-deal Brexit. Intended to minimise disruption for firms and other regulated entities, the Treasury has put forward draft legislation that would make transitional provisions if the UK leaves the EU without a withdrawal agreement.
BGC Partners has completed the acquisition of Ed Broking Group. Ed will become part of BGC’s insurance division, which was established in 2017 with the acquisition of Besso. Steve Hearn, currently group CEO of Ed, will become head of BGC’s insurance division.
Companies in the power and renewable energy sectors should be preparing themselves to contend with disruption to their businesses from a range of sources, including potentially adverse developments in the insurance market, according to a Willis Towers Watson market review.
Following its letter in autumn to 16 leading UK fashion retailers, the EAC has published its interim report, with JD Sports; Sports Direct, TK Maxx, Amazon, Boohoo and Missguided described as’ lagging’ and ‘least engaged’. None of these companies have signed up to SCAP (Sustainable Clothing Action Plan) to reduce their carbon, water and waste footprint or the ACT (Action, Collaboration, Transformation) labour rights and living-wage agreement.
AXA XL has entered into an agreement with Guidewire Software that will see the insurer roll out the software company’s Cyence Risk Analytics modelling solution across its cyber underwriting and pricing operations. Chief underwriting officer of AXA XL’s North America cyber team, John Coletti said cyber risk is very different from the traditional risks the industry has long been covering in that it is continually evolving. “Because it brings a real-time element to our clients’ risk landscape, it requires a new way of thinking. Through our partnership with Guidewire’s Cyence team, we are able to support our brokers and clients in understanding the cyber threat in a live environment and, ultimately, to take insurance from an annual transaction to a real-time interaction.”
Standards company, BSI has published a code of practice for managing the security risks related to connected automotive ecosystems. The speed with which this sector is changing raises questions, the company says, over whether all potential risk factors are being identified; or if sufficient contingency plans are in place. BSI’s recommendations cover the entire connected automotive ecosystem and its constituent systems, including manufacturing, supply chain and maintenance activities.
The public consultation process for the draft international privacy information management standard, ISO/IEC 27552 is now open. Standards company, BSI is seeking to consult with data protection practitioners, information security specialists and the technology industry on the safe and secure management of data amid the vast and growing collection and processing of personal information.
UK businesses benefitting from Horizon 2020 research funding are urged to register their details with the government so they can continue to receive funding if the UK leaves the EU with no deal.
The UK government has announced a further £100m to help eradicate the growing cyber threat. The investment is intended to support research into the design and development of hardware that is “secure and resilient from the outset”; it aims to “design out” many forms of cyber threat by “designing in” security and protection solutions into hardware and chip designs, ultimately helping to eradicate a significant proportion of the current cyber risks for businesses and services in future connected smart products.
Condensing 17 years of practice experience in the discipline and academic theory, Dr Chapelle has created an ‘all-in one’ guide to every aspect of financial operational risk. The author dives straight into the concepts of what risk is in its most basic form, then builds layer by layer into a comprehensive guide, explaining the relationship of each element, history where relevant and reasons for evolution, bringing the reader up-to-date with current best practice and theory. At no point is a prior knowledge of the areas or its jargon assumed, and in a meticulous fashion the author creates a journey that ends with a thorough overview and tackles each element one by one.
Outlets selling pre-packaged food could be required to follow new rules designed to give the UK’s two million food allergy sufferers greater confidence in the safety of their food. The moves follow the death of Natasha Ednan-Laperouse, the teenager who died after suffering an allergic reaction to a Pret a Manger baguette. Announcing the consultation to overhaul current labelling laws today, environment secretary Michael Gove said…
The insurance sectors of the UK and Switzerland are set to continue trading freely with one another after the UK has left the EU. The new arrangement will replicate the effects of the existing EU agreement with Switzerland and will come into force when the current EU-Swiss Direct Insurance Agreement ceases to apply to the UK.
The energy sector is undergoing rapid change. Following several years of belt tightening and cost cutting, many oil and gas companies are looking to expand into new projects and territories, and into renewable energy sources, according to a survey just published by the Institute of Risk Management.
Cyber security, Brexit, geopolitics and financial market fluctuations are among the chief concerns for businesses voiced by some of the UK’s leading risk experts as they look ahead to 2019. At the start of year, senior members of the Institute of Risk Management were asked to identify key risk areas for businesses in the year ahead. A broad range of financial, political and healthcare risks were highlighted. Many of these align with risks identified in the World Economic Forum’s 2019 ‘Global Risks Report’ – a publication with which readers of this magazine will I’m sure be familiar.
A report from the Ellen MacArthur Foundation, published in collaboration with Google and with analytical support from McKinsey & Company, estimates that artificial intelligence (AI) could accelerate the transition towards a circular economy, offering substantial improvements in three main areas: product design, operations, and infrastructure optimisation.
Organisations increasingly recognise that a strong approach to corporate social responsibility is not just a good thing to do – it’s a business imperative. Aligning business objectives and strategy to broader societal issues is at the heart of creating a sustainable business model, and thereby builds long-term shareholder value.
A growing number of local authorities are reportedly struggling to ‘balance the books’. Austerity has been with local government for eight years. Many council officers have identified that this point has been arrived at by a gradual process that has chipped away at the essence of local authorities – the services they deliver and the structures they use to do so. The accumulative effect, built up over years of budget cuts, adds to the anticipation around setting a sustainable budget. That becomes an ever more challenging prospect to finance managers, with higher risk levels and an increasing need to support the resilience of public authorities.
FM Global has become the first US insurer to take action to limit coal insurance. Together with other international insurance companies, FM Global pledged not to support the Adani Group’s proposed Carmichael coal mine in Western Australia. The list includes Allianz, AXA, Generali and Zurich, reinsurers Munich Re, Swiss Re, SCOR, QBE and Suncorp.
A no-deal Brexit and a sharper slowdown in China are the biggest risks to growth in the global economy in 2019, the International Monetary Fund has warned in its latest economic outlook. In a report published on the first day of the World Economic Forum summit in Davos, Switzerland, the IMF said that alongside already falling levels of growth in Europe, China and Japan, an escalation of the trade war between Donald Trump and Beijing over the coming months and the UK leaving the EU without a deal would lead to further downgrades in its forecasts for growth.
Modern business pressures, hugely burdensome remits and continuous regulatory changes are exposing senior business executives like never before to liability claims, according to research by QBE Business Insurance. It found that the risk of prosecution, bankruptcy and jail terms is now firmly on the agenda.
Businesses have been warned that a new era of infectious disease outbreaks could pose an economic and operational risk as great in scale as climate change over the coming decades, and that they must consider the steps they should be taking to mitigate the threats. The World Economic Forum, in collaboration with the Harvard Global Health Institute, today released a white paper that details why and how the business community should contribute more to manage the threat and impact of infectious disease on societies.
Staff shortages have escalated in the last three months to become the top emerging risk organisations face globally, according to Gartner’s latest Emerging Risks Survey. The survey of 137 senior executives in Q4 of 2018 showed that concerns about talent shortages now outweigh those around accelerating privacy regulation and cloud computing, which were the top two risks in the monitor for Q3.
There are just a few weeks remaining to enter this year's Business Continuity Awards. Celebrating achievement in business continuity, security and resilience, the Business Continuity Awards are the most anticipated event in the industry calendar and provides unrivalled networking, alongside a night of entertainment and celebration.
Three insurers make the top five of the annual ranking of most praised corporates, which is compiled by research consultancy SIGWATCH, based on its monitoring of comments of more than 9,000 NGOs over the past year. They overtake leading global consumer brands in retail, food and fashion such as McDonald’s, Aldi and H&M, which habitually respond constructively to NGOs and are commended as a result. Unilever is the exception to the rule, winning the title of most praised brand for the second year in a row, on account of its initiatives on issues such as palm oil, animal welfare, fragrance disclosure and sustainability.
Business sentiment around the ongoing Brexit talks is somewhat frayed after the government lost last night's vote in Parliament on its proposed deal. Even if yesterday’s deal had been passed, our future relationship with the EU would still be unclear, and as it is, businesses are left with even more questions than they had before.
Insured losses from major natural catastrophes in 2018 totalled roughly US$71.5bn, only slightly more than the annual average since 2011 but the third-highest total during the eight-year period, according to the latest figures from Willis Re. The average is driven upwards by peak annual losses of US$120bn in 2011 and US$143bn in 2017. In contrast to these previous peak years, where one or two natural disasters contributed a large percentage of the total insured loss, no such major event or events account for a large proportion of the 2018 losses. Instead, the total arises from a series of smaller and medium-sized loss events.
The Institute of Risk Management has entered into a multi-year agreement with computer-based testing firm, Pearson VUE. The first certificates to move to the new system include the Digital Risk Management Certificate (from November 2019); the International Certificate in Enterprise Risk Management (June 2020), and the International Certificate in Financial Services Risk Management (June 2020).
A bad Brexit is likely to lead to heightened business interruption risks, and a surge in D&O claims, many of which will be rejected by insurers, according to Mactavish CEO, Bruce Hepburn. “Directors of listed UK companies face major liability risks for failing to prepare adequately for Brexit, especially if there is a ‘no deal’ outcome,” he said, reiterating his earlier warning that UK directors may have overlooked new liabilities that could leave them exposed personally to legal action because of traditional limitations applied to D&O insurance cover.
Economic confrontation between major powers is expected to continue to hamper progress throughout the year, with rising geopolitical and geo-economic tensions the most significant risk for 2019, according to the World Economic Forum’s latest Global Risks Report.
Cyber threats and changes in legislation and regulation, including concerns around Brexit are considered the top risks by UK risk experts – and rank joint first according to the latest Allianz Risk Barometer. Meanwhile, cyber incidents are neck-and-neck with business interruption as the top business risks globally. But what was the new entry in this year’s barometer?
The new year has arrived and with it a host of reports on the state of the world’s preparedness for the most urgent risks of our age. The most anticipated of these comes from the World Economic Forum, ahead of its Davos summit this month. The WEF’s ‘Global Risks Report’ builds on over a decade of data, this year focusing heavily on the immediate risks relating to the recent rapid deterioration in geopolitical and economic conditions and the erosion of multilateral trading agreements. In terms of blind spots, the group is concerned that the vulnerability of networked societies has not been fully appreciated, and that the cyber threat persists worldwide. Long-term, four of the top five most impactful global risks relate to the environment and climate change.
Whatever line of work we are in, mental health is one of the biggest issues we need to manage. Recent research produced by Mind showed that seven in ten workers have had poor mental health at some time in their lives, and the annual cost of poor mental health to employers is between £33bn and £44bn.
Accident aftercare and on-going mobility specialist, Amber Assist, has teamed up with VisionTrack to enhance its service offering to car and van fleets. Under the partnership the company will now be able to provide industry-leading vehicle CCTV and video telematics systems as part of its comprehensive accident management solution.
DAC Beachcroft has this week opened a new office in Paris – its first in France. The Parisian team, led by partners Vladimir Rostan d'Ancezune and Christophe Wucher North, will focus on both the global and domestic insurance and industrial risks sectors. The two have extensive experience of this specialist market and of international work in the UK, Spain, Germany, LatAm, Australia, the USA and Singapore. They join from HMN, a Parisian insurance firm.
Hiscox has collaborated with Brompton Bicycle to stage a ‘real world’ hack – simulating the effects of a cyber attack by constructing a complete clone of their east-London store overnight, hiring look-a-like staff and even stocking the shelves with counterfeit merchandise. Reactions of staff and passers-by were captured as the fake store - ‘3rompton’ - opened its doors to the public on the opposite side of the road and subsequently launched a series of cyber attack simulations on the genuine Brompton store in Shoreditch.
Amazon Web Services is reported to have acquired Israeli disaster recovery startup CloudEndure, in transaction that could highlight a wider transition taking place within disaster recovery, according to Databarracks’s Peter Groucutt. The MD of the business continuity and disaster recovery firm says he thinks the most surprising part is that it was AWS that acquired CloudEndure, not Google Cloud Platform.
Assurance Software has announced a merger with ClearView Continuity, in what together they refer to as a union of "technology and cultural synergies that will allow us to accelerate product innovation and enhance customer value".
Beazley is expanding its insurance offering in Asian markets through a new financial lines capacity arrangement with Hong Kong-based coverholder Pegasus Underwriting. As part of the arrangement, PUL's financial lines capability will be supported by Beazley capacity across professional indemnity, D&O, cyber and medical malpractice.
CFC has announced expansions to its cyber insurance cover, introducing business interruption as well as expanded cover for a variety of cyber crime activities. Under the provider’s new cyber insurance product, insureds will now have business interruption cover that is triggered by IT system failure as well as malicious cyber events. The updated policy also provides full supply chain business interruption cover, extending to events that impact the insured’s systems, the systems of their technology suppliers as well as those of non-technology suppliers where named.
State-backed terrorism reinsurer, Pool Re announced this morning that is to cease reinsurance activities after the first quarter of 2019. As a result of sufficient capacity now existing within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism, it will cease to reinsure members for the contingency cover provided to insureds.
Specialist risk management software provider, Sword GRC has acquired Magique Galileo. The new, combined offering will combine solutions from Sword Active Risk, Sword Achiever and Magique Galileo; with employees of the three brands located in the UK, USA, Asia and Australia.
Arthur J. Gallagher is to acquire specialist UK insurance broker Stackhouse Poland. Founded in 1974 as a local community broker, Stackhouse Poland now generates over £55m in annualised revenues. With more than 500 employees, the broker operates from a network of 23 offices across the UK and has insurance divisions specialising in high-net-worth private clients, real estate, commercial, healthcare and a wide range of specialist insurance sectors.
Congratulations to all our finalists in the 2019 Commercial Insurance Awards. Now in their sixth year, these awards are the showcase for excellence within commercial insurance. View the shortlist here: http://www.commercialinsuranceawards.com/awards/
UK company directors could face liability risks for failing to prepare adequately for Brexit, particularly in the event of a no-deal outcome, according to Mactavish. The insurance governance consultant believes directors have overlooked these potential new liabilities, which could leave them personally exposed to legal actions because of the traditional limitations applied to directors’ and officers’ liability cover.
*UPDATED* Sightings of drones flying close to Gatwick Airport Wednesday night closed the UK’s second busiest air terminal. The runway was shut throughout Thursday. Over 120,000 people were affected by the closure.
JLT Re has partnered with motor InsurTech company, Pact Insurance to create a digital insurance solution to cover established and emerging mobility risks. “Consumer lifestyles are increasingly digital and dynamic, growing the divide between one size fits all coverage and consumer behaviour," said Paul Lee, CEO, Pact.
More than US$1.3bn of InsurTech funding was completed during the third quarter of this year, double that of previous quarter. Q3 saw eight transactions over US$40m, according to Willis Towers Watson’s Quarterly InsurTech Briefing, which says it’s parametrics bucking this sharp upward trend.
The Civil Liability Act 2018 has received Royal Assent, and under its provisions, the Lord Chancellor must start a review of the rate within 90 days. He must then determine the rate within 140 days of the review commencing, meaning that the latest he can set the new rate is 7 August 2019.
As we head into the new year, globalisation, interconnectivity and the increasing number of entities involved in global supply chains will produce ever more complex 3-D chains or ‘value matrices’. This in turn exposes suppliers to an exponentially increased level and range of associated risks, both tangible (physical products and impacts) and intangible (data and services). Dependency on the capabilities and integrity of other organisations, even if tightly contractually controlled, can create weak links in the chain.
An up-to-date summary of all our predictions so far. For the full article, simply click on the headline.
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No surprises that cyber insurance will continue to develop in 2019. While big brand data breaches catch the headlines, the need for a cyber insurance to protect all sizes of business and organisations is clear, and the need for a cyber insurance market is obvious. However, we do need to have a sea change in how cyber policies are written and managed in 2019.
Reacting to no-deal contingency plans published by the European Commission today, Hugh Savill, Director of Regulation at the Association of British Insurers said the European Commission had "not lifted a finger to allow insurance contracts to be fulfilled. “While the action on derivatives is welcome it is extraordinary that the EU authorities will act to help major financial institutions but not millions of ordinary people living in Europe whose insurance and pension contracts happen to be held in the UK,” he said.
The Financial Conduct Authority has published new rules and fees that will apply to all claims management companies (CMCs) from April 2019, when the watchdog takes over responsibility for their regulation. From next April, all CMCs set up or serving customers in England, Scotland and Wales will have to be authorised by the FCA to continue operating legally. To be authorised by the FCA they must demonstrate they meet minimum standards to operate. Any firm that isn’t authorised will have to stop handling claims.
Arc Legal has been appointed by RSA as supplier of legal expenses insurance services across its commercial and personal product lines. Under the arrangement, RSA will continue to underwrite the products, with Arc Legal providing claims and solicitor management services, product development and actuarial support and ongoing guidance on compliance and regulatory matters.
The World Economic Forum has published work by the Women Political Leaders Global Forum, that has, in cooperation with Kantar, created the ‘Reykjavik Index for Leadership’ to help understand global attitudes to gender equality in leadership roles. The UK tops the list, with the highest rating for equality in the index for leadership for the G7 nations. The Index shows that the G7 divides into two groups of countries. First, a group of four that have higher indices out of 100: the UK (72), France (71), Canada (71), and the US (70).
Cyber risks and the impact of new technologies will have an increasing influence on the corporate loss landscape in years to come. However, it is fire and explosion incidents that cause the largest claims for insurers and the businesses they cover, according to new research from Allianz Global Corporate & Specialty. The vast majority of corporate insurance claims originate from technical or human factors despite natural catastrophes such as hurricanes, having caused devastating losses over the past two years.
As we mark the ten year anniversary of Bitcoin’s launch, there’s no shortage of news and speculation related to the digital currency’s value and potential applications. Articles related to blockchain overwhelming concentrate on an infrastructure underpinning digital currencies used for speculative investments. The reality is far more complex. Blockchain technology’s potential application could disrupt vertical industries as diverse as entertainment, agriculture, and logistics.
Finland-based cyber security company, Arctic Security, has launched its new Arctic Node cyber security tool, designed to help user organisations collect threat intelligence data. The new tool can be directly integrated in the existing cyber security infrastructure that the enterprises have earlier invested in. This includes integrations to security sensors, security information and event management systems (SIEM), incident response platforms and ticketing.
Following the announcement by Shell that it will link executive pay to carbon-reduction, logistics company Maersk and US electric power company Xcel Energy have pledged to cut their carbon emissions to zero by 2050.
Business continuity and IT disaster recovery specialist, Databarracks, has partnered with Rubrik to add cloud data management capabilities to its offering. Databarracks managing director Peter Groucutt commented: “The combination of back-up, disaster recovery and archive in a single, scalable product is exciting and addresses a need we see from mid-market and enterprise organisations.
Sedex has launched a new Supplier Health Check Report that uses a supplier’s site information and audit data to show suppliers how they benchmark against others in their industry or country across labour, health and safety, business ethics and the environment.
The US Department of the Treasury and the Office of the US Trade Representative have announced their intent to sign a UK-US covered agreement. The agreement is an important step in providing regulatory certainty and market continuity as the UK prepares to leave the EU in March 2019, as well as in making US companies more competitive in domestic and foreign markets and making regulations more efficient, effective and appropriately tailored.
The London Market has come a long way on its modernisation journey in the last 12 months but there is still some way to go. We expect that 2019 will likely be the year when organisations across the industry come together to maximise the benefits of innovation and technology. By now, nobody can be in any doubt about the benefits of moving risk more easily through the market. The arrival of the PPL electronic placing platform is improving customer service, increasing efficiency and reducing back office costs. But the ultimate goal of straight-through processing – the sharing of digital data with minimal or no human intervention – requires not only adoption of the individual solutions but also interconnections between policy administration systems and platforms such as PPL.
Specialist insurer Beazley has launched a cyber and breach response portal that provides access to risk management information and risk mitigation tools to its Beazley Breach Response (BBR) policyholders in the UK, France, Spain and Italy. Following the establishment of its US client portal, Beazley’s international breach response team has developed a comprehensive set of training materials, incident response planning and risk assessment tools in English, French, Spanish and Italian.
Mobile operator O2 has restored service across its data networks following an outage lasting for much of the day on Thursday 6 December. The second-largest mobile operator in the UK, O2 has 25 million users and also provides services for the Sky, Tesco, Giffgaff and Lycamobile networks, which have another seven million users.
An inability to keep up with ‘digital-savvy’ competitors is among the top concerns of business leaders around the world according to a survey of senior executives. The study, ‘Executive Perspectives on Top Risks’, found that bosses are concerned about their company’s ability to transform its operations and infrastructure to successfully compete with organisations that are ‘born digital’.
American International Group (AIG) has been hit by an estimated US$750m - US$800m in catastrophe losses so far during Q4 2018, its chief executive officer has revealed. Despite the difficult start to the quarter, the company’s general insurance unit is on track to start 2019 “at a slight underwriting profit,” according to AIG chief executive Brian Duperreault.
The construction industry could see a significant increase in premiums for professional indemnity insurance as a number of insurers scale back capacity or withdraw from the sector altogether. Design and construct (D&C) contractors have benefitted from an abundance of affordable PI insurance for around 15 years, resulting in low premiums and wide coverage.
Research conducted on behalf of payment security firm PCI Pal has found that 41% of UK consumers will never return to a brand or a business following a security breach, representing a significant loss of revenue. In addition, 44% will stop spending with a business or brand for several months in the immediate aftermath of a security breach.
Law firm Clyde & Co has published a report exploring the legal, commercial and liability risks that climate change creates for businesses and their boards. ‘Climate change: a burning issue for businesses and boardrooms’ looks at what is driving the heightened risk environment and how most companies are vulnerable to climate-related risks in some way, even if they are not directly operating in the energy sector or other carbon-intensive parts of the world economy.
Businesses in the construction sector have been warned of a significant year-on-year increase in plant theft which could see the figures for this year hit record levels. Up 55% since 2013, data from Allianz Engineering, Construction & Power shows the business dealt with 428 cases of plant theft in 2013 and the latest figures have increased year-on-year to 665.
Chubb has launched a new service for multinational companies and large middle market businesses which combines its terrorism & political violence underwriting, risk engineering, global security, catastrophe modelling and digital expertise.
The Marriott Hotel Group data breach revealed last week - one of the largest on record - is indicative of the potential exposure that many organisations currently face, experts have warned.
Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses from the Woolsey Fire in Southern California will be at least US$2.5bn.
As we head into 2019, we believe insurers will need to prepare for potential sexual harassment and discrimination claims. With rising numbers of sexual misconduct allegations and increased awareness of gender pay inequality across all areas of business, media and political life, insurers can expect increased exposure linked to sexual discrimination and harassment claims and class actions throughout the year.
The internet has been transforming how we do business in ways that just 20 years ago would have seemed unimaginable. Necessarily, the field of cyber security has undergone a similarly dramatic change, demanding that organisations continuously embrace new practices and skillsets when it comes to the maintenance of security and regulatory compliance.
Direct Commercial’s DCL Academy has recently enrolled a further 14 apprentices. The Academy, which operates from the company’s head office in Chelmsford, sees apprentices working on a day-to-day basis with its underwriting and claims teams. To support training, the apprentices have access to a purpose-built training suite. Whilst being in full time employment, the apprentices will be working towards the attainment of a Level 3 Insurance Practitioner standard and completion of the Certificate of Insurance.
As business leaders pin their future growth strategies around rising technology spend, so technology risk and cyber risk will rise in 2019. These are two of the key predictions from CNA Hardy’s global 'Risk and Confidence Report', published in November. Three quarters (74%) of business leaders are prioritising technology spend in November 2018, and over a third (37%) of C-suite executives predict spending will rise in 2019. Increasing reliance on technology is based on the belief that it will help businesses to drive efficiency, profitability, innovation and closer customer interaction.
Small charities from across the UK are ‘sleepwalking’ into a risk management crisis, a new report has revealed. 'Under the radar: risk management in small charities', commissioned by PolicyBee from the University of Suffolk, revealed only half of small charities are confident in identifying and tackling risk.
With the National Flood Insurance Programme (NFIP) set to expire on 30th November, the risk management society, RIMS has signed a joint letter with other insurance, real estate and banking organisations, urging Congress to take immediate action to avoid a lapse in the programme.
The Internet of Things has the potential to increase complexity and amplify risk but it could also enable more innovation throughout the entire insurance value chain, including the way claims are settled in future, according to new research from Lloyd’s. IoT will lead to data capture and management at an unprecedented scale, according to the report. This could mean better risk assessment and more flexible, bespoke and real-time products. It may also increase policyholder concerns about the use and accuracy of their data. Interconnectivity can also create new business models where more is known about insureds, policies are generated in real-time and are bespoke, and fraudulent claims are recognised more quickly. The ability to create personalised policies will also enable insurers to more accurately predict and mitigate risks.
In 2018, emerging markets made headlines as foreign investors pulled back from heavily indebted countries like Turkey, Argentina and South Africa. While 2019 is unlikely to experience a full-blown debt crisis, we believe political and trade credit risk will remain in the spotlight in Argentina and Turkey, as well as other key markets, driving increased demand for specialist trade credit insurance. US-China tensions may also create trade distortions and put US companies operating in China at risk.
ClearView has launched a new business continuity training toolkit using virtual reality to create more immersive environments for participants. ClearView VR, developed in partnership with specialist VR company Phygital, brings the benefits of highly engaging and realistic virtual environments for business continuity education, exercising, and awareness raising.
New research reveals that companies that take their insurers to court over non-payment of a claim only win in around one in three cases. The Mactavish research reviewed every UK court case or arbitration appeal relating to payments under primary business insurance policies between 2013 and 2018. Over this period, just 32% of decisions went in the policyholder’s favour, according to the study.
The 21st Annual Business Continuity Awards, celebrating achievement in business continuity, security and resilience, are open for entries. The Business Continuity Awards are the most anticipated event in the business continuity calendar and provides unrivalled networking, alongside a night of entertainment and celebration.
Aon has today announced the availability of its new non-damage business interruption (NDBI) cover designed to protect the income streams of the growing number of companies with high levels of intangible assets. The new NDBI cover can be particularly beneficial to hotels, retailers, pharmaceutical firms and transportation companies. For the hospitality and retails sectors, the product can help firms mitigate the financial impact of lower client footfall following events such as delays or cancellations to transportation.
Chairman of Nissan and chief exec of Renault, Carlos Ghosn, has been arrested in Japan over claims of financial misconduct. The car maker has for the past few months been conducting an internal investigation regarding misconduct involving Ghosn and director Greg Kelly.
Willis Towers Watson has introduced CyFly for Airports, a flexible insurance solution specifically tailored to cover cyber exposures affecting airports around the globe. The new solution provides business interruption arising from outages sustained by third parties upon whose networks airports rely, such as air navigation service providers, hangar operators and maintenance operators; regulatory costs and fines under cyber security legislation (such as the EU Network & Information Systems Directive) rather than just data protection legislation; and broad system failure business interruption extending to any unplanned outages, rather than those arising only from hacks or negligence. It also covers voluntary system shut-downs to mitigate business interruption exposures; claims preparation costs and deemed insurability language, aiding recovery of both data protection (eg. GDPR) and cyber security (eg. NISD) fines.
The Chartered Insurance Institute (CII) has launched an innovative programme reaching out to young people across the UK, with over 1,000 schools to be involved nationally in the new Discover Risk programme. Discover Risk uses interactive games to engage and interact with young people on how risk impacts the decisions we make each day. It has evolved as a formal pro bono programme for the insurance profession, as many professions have formal pro bono programmes which give back to society.
Responding to the text of the draft Brexit agreement reached by the UK and European Union, Christopher Croft, chief executive of the London and International Insurance Brokers’ Association (LIIBA) said that while it is encouraging to see a dedicated section on financial services, he hoped that the fact the draft is solely built around the concept of ‘equivalence’ is for the sake of brevity and simplicity. "Otherwise, those of us who have no equivalence regime have cause for serious concern. As do our clients," he said.
Companies investing in the world’s 100 fastest growing cities will face the highest levels of risk from rising temperatures and increasingly severe weather events brought on by climate change, according to the latest data from global risk analytics company, Verisk Maplecroft. At the other end of the scale, the five cities considered most insulated from the impacts of climate change are all located in the UK.
A specially-convened meeting of the CBI’s most senior policy-making committee has issued a unanimous statement declaring ‘we must not go backwards’ following the publication of the draft Withdrawal Agreement between the UK and EU. It says the agreement has two essential economic benefits which must be achieved: avoiding a no deal cliff edge by delivering transition, and opening a route to a good long-term trade deal.
Responding to the draft Brexit agreement outlined this week, the British Insurance Brokers' Association has welcomed progress towards a transition period but remains concerned over the lack of a solution for UK brokers trading with commercial and retail customers in Europe.
Marsh has announced the formation of Marsh-JLT Specialty, a new specialty business within Marsh that combines the specialty teams of Marsh and Jardine Lloyd Thompson Group, effective upon closing of the transaction. In addition to becoming vice-chairman of Marsh & McLennan Companies and a member of the Marsh & McLennan executive committee, Dominic Burke, currently CEO of JLT Group, will become chairman of Marsh-JLT Specialty. He will continue to be located in London.
Internet connected cameras are an increasingly popular choice for people to want to use CCTV to protect their homes and businesses, because of the benefits they bring. These include remote access to content, automatic alerts when there is suspicious activity and easy sharing of recordings to anyone, from anywhere – for example sharing with the police even when the property owner is in another country.
If you think that slavery is ancient history or at least someone else’s problem, then think again. It is estimated that there are more than 40 million slaves globally, more than a million of them in Europe. Companies operating in the UK with a global turnover in excess of £36m have a legal duty to combat it. Yet, too few firms to date have paid much attention to the Modern Slavery Act 2015 (MSA), even though failure to comply carries a huge potential for reputational damage.
Is this the beginning of the end? This might seem a rather dramatic statement, but bear with me. There are a number of headline topics this could relate to at the moment – from the NHS, social services and the ability to meet the needs of an increasing number of older and vulnerable people to the small matter of global warming, to name a few. But the topic I am referring is that of Theresa May’s recent Conservative Party conference speech and her promise that austerity was over and that “the end is in sight”. Better days are ahead, she promised, adding that, after Brexit the government will boost investment in public services while continuing to reduce debt.
Although many people use apps to check bank balances and make transactions, a large number of financial services customers still receive paper records such as policy documents and statements. Some 5.2bn paper documents were estimated to have been sent by the industry last year alone, according to a study conducted by EY, which suggests just 28% of customers are truly paperless.
Addressing an audience of cyber insurance experts this week, Economic Secretary to the Treasury and City Minister, John Glen, said the UK is perfectly positioned to provide much needed protection against the global cyber threat.
More than 42 people have died and a further 200 are missing as a result of the wildfires in Northern and Southern California. Fanned by powerful Santa Ana winds in the south and Diablo winds in the north, the fire is now the deadliest on record in the state.
At the launch of the 2018 Corporate Human Right Benchmark, Steve Waygood, the chief responsible investment officer at Aviva, made a remark about the audience. It was, he said, now a third composed of representatives of the financial sector – a significantly higher than a year ago. Waygood pondered why the financial sector had suddenly taken such an interest, and pointed to the results of human rights violations upon Bell Pottinger and VW (failure, fines and share price drop).
Pool Re has outlined its plans for its forthcoming non-damage business interruption cover. Once the legislative changes are passed, Pool Re will be able to cover losses caused when businesses cannot operate because of a wide police cordon even though their premises may not be damaged, as happened in London’s Borough Market in June 2017.
Cargo theft on UK roads cost companies around £14 million between the months of April and June, with alcohol and tobacco products the most targeted items. Further analysis from BSI and the National Vehicle Crime Intelligence Service (NaVCIS) cites an average loss of £36,436 per incident, with the highest-value single cargo loss in Q2 cited as £1.13m, when thieves stole a trailer loaded with luxury fashion goods.
The winners of the ninth annual Risk Management Awards were revealed last night at a gala dinner and ceremony attended by 400 people at the De Vere Grand Connaught in London. Skanska came away with two gongs this year, while the coveted Risk Manager trophy was picked up by Wes Cadby of J Murphy and Sons.
Hurricane Michael is estimated to have a financial impact on the US economy of US$15bn, according to Aon's calculations. Storms in Europe meanwhile resulted in economic losses of more than US$3.7bn, with Italy bearing the brunt.
Willis Towers Watson has been working with new insurer Ticker, providing support and advisory ahead of the telematics provider’s early 2019 launch. The start up will use WTW’s Radar pricing software to support pricing and underwriting decision-making.
The Chartered Insurance Institute (CII) has boosted its global team with the appointment of David Thompson as international director. Thompson will be based at the CII’s new Middle East and Africa (MEA) headquarters in Dubai but will also oversee operations from CII offices in Mumbai and Hong Kong.
Cyber attacks and data breaches continue to top the list of challenges for business continuity professionals, according to the BCI’s latest annual Supply Chain Resilience Report. As per last year’s report, uptake of business continuity arrangements continues to grow, with increasing numbers of organisations embedding business continuity to protect supply chains – and that’s despite what it highlights as a declining commitment from senior management…
As 2018 draws to a close, I am pleased to report another fantastic year for the Institute. At the same time, though, there’s more work to be done and we’ve got a plethora of activities taking place in November and December. Our flagship annual conference, Risk Leaders: The Next Generation of Risk Management, is taking place in London on the 15th November where we will have the opportunity to discuss Brexit, artificial intelligence, cyber risk, ethics, GDPR and more. IRM’s Annual Lecture on 6th December will feature a senior member of the Armed Forces talking about strategic geopolitical risk management from a military standpoint. It really does go to show how risk management truly affects every facet of our personal and working lives.
Arch has selected AIR Worldwide’s Touchstone modelling solution to help manage its catastrophe risk. The company will be using a customised suite of tools for detailed loss modelling, incorporating recent enhancements including zone-based analytics, improved management of Touchstone projects and data transfer between companies, an extensive refresh of the user interface.
The number on insurance-related patents filed worldwide jumped 40% last year, to 917 in 2017 (to Dec 31) from 657 in 2016, according to law firm RPC. Pricing and telematics were most in focus as insurers seek to make cost analysis and risk modelling more accurate. Sharp increases were also seen in patents relating to machine learning and P2P.
Cyber insurance and directors and officers’ (D&O) liability insurance have become increasingly interconnected, as company business models increasingly revolve around technology, according to a new Airmic white paper. It points to several high-profile shareholder class actions resulting from cyber incidents, a scenario that puts companies’ D&O policies under the spotlight.
Hot on the heels of Google topping the rankings in the Reputation Institutes’ survey of Millennials, the company has experienced a walk out of staff over sexual harassment claims.
Globally staff are walking out over company's treatment of women, and follows earlier claims and the mishandling of the James Damore case. However, the key events that sparked the protest was the allegation that an executive received a pay-out of US$90m on leaving the company despite claims of sexual misconduct and another executive resigning without investigation after claims of unwanted advances.
Volvo Cars has reached an agreement with Chinese technology firm, Baidu, to develop autonomous cars in China. Under the agreement, Baidu will use its Apollo autonomous driving platform with a view to mass manufacturing fully electric and autonomous cars with the Swedish company. The collaboration with Volvo Cars is the first of its kind in China.
The Financial Conduct Authority has launched a review into how general insurers charge customers for home and motor insurance amid concerns that pricing practices may be discriminating against consumers. The market study is intended to give the FCA a deeper understanding of the scale of any harm to consumers from general insurance pricing practices, who it affects and, if required, what actions are required to improve the market.
Sungard Availability Services has attained the AWS Managed Service Provider (MSP) Partner designation for the delivery of resilient, recoverable IT solutions. The provider was lauded for using proven tooling to support AWS customers, developing a single sign-on (SSO) portal for customer and account management and its strong focus on the continued training of DevOps and cloud division personnel, who currently hold 60 AWS certifications and 544 business and technical accreditations.
Traveller Assist has launched a new insurtech platform that uses blockchain to facilitate payment of medical bills and travel related expenses on behalf of travel and health insurers abroad.
The increasing uptake of augmented reality (AR), virtual reality (VR) and mixed reality (MR) technologies by businesses represents an opportunity for insurers, according to a new report from Lloyd's. In order to stay on top of developments in virtual reality and augmented reality, Lloyd's is urging insurers to immerse themselves in the technology to help them anticipate and react to emerging risks in the virtual world.
London based insurtech company Concirrus has entered a multi-year agreement with Marsh that will see the two companies working together to drive the use of behavioural data in the global marine market. Marsh will adopt the company’s Quest Marine product to help drive new insights and placement strategies as well as identifying new opportunities for digital product development in the marine insurance industry.
JBA Risk Management and Aspen Re have launched a fully probabilistic China catastrophe model for inland flood. The Continental China Flood Model will allow users to disaggregate province-level exposure data to a higher resolution for modelling – a process which provides a realistic view of the spatial location of insured exposure across China.
The Chancellor this afternoon delivered an Autumn Budget with “more treats than tricks” according to the CBI, which welcomed Hammond’s “rock solid” measures for the next financial year. Among the key pledges impacting the profession include an extra £1bn in defence spending to boost cyber capabilities, an additional £500m set aside to prepare for a no-deal Brexit, and an extra £160m for counter-terrorism police.
Aon has collaborated with Guidewire Software on a scenario for a hypothetical attack by hackers on a US hydroelectric dam. In the scenario, a hacker seeks to create disruption by opening the flood gates at a hydroelectric dam. Such a scenario would likely cause significant downstream flood damages, resulting in silent cyber losses for insurers.
Road traffic accident risk increases by over a third after the clocks go back, according to data from Insurethebox. The telematics insurance provider suggests that accident rates among motorists driving between 1700-2000 in the weeks directly following the October clock change increase by as much as 34%.
Retailers and manufacturers are being urged to check their trade credit insurance fits with contingency plans for a potential no-deal Brexit. Risk management consultants at Marsh say some firms are ramping up their inventories in preparation for any delays caused by potential trade restrictions.
Following a number of regulatory changes, training and diversity initiatives across the insurance sector to boost education, training, talent recruitment and diversity, the International Underwriting Association has formed a new London Market group for human resources professionals.
The Information Commissioner’s Office (ICO) has fined Facebook £500,000 for serious breaches of data protection law. In July, the ICO issued a Notice of Intent to fine Facebook as part of a wide ranging investigation into the use of data analytics for political purposes. The ICO’s investigation found that between 2007 and 2014, Facebook processed the personal information of users unfairly by allowing application developers access to their information without sufficiently clear and informed consent, and allowing access even if users had not downloaded the app, but were simply ‘friends’ with people who had.
Law firm Clyde & Co has now received confirmation from the Danish Court that the favourable High Court decision absolving insurer clients of a US$470m claim stands as final and unappealable. The energy construction claim was notified by Norwegian energy company Noreco against a group of international insurers in 2009. Noreco claimed that its all-risk insurance policy should pay for damage to the Siri oil platform in the Danish sector of the North Sea, which forced three fields to shut down.
Responding to the rising number of strikes, riots and instances of civil unrest and terrorism around the world, Marsh has today launched a new standalone insurance solution that provides financial protection for global businesses following any related denial of access to their properties.
Concerns that political and economic conditions might limit export orders in manufacturing over the next three months are at their highest since immediately after the EU Referendum, according to the CBI’s latest quarterly industrial trends report. CBI chief economist, Rain Newton-Smith, said the figures were “sobering” and demanded immediate action at home and abroad.
HawkSight Software has joined forces with PGI to offer users data feed integration capabilities covering geopolitical events, security incidents and business continuity threats.
Working with PGI’s API, the software will display incident data from the last 48 hours each time a user logs in whilst storing older data for recall when required. Incident data can be displayed as a cluster, or heat layer, and may also be charted, with click through capability to enable interrogation of individual incidents in greater detail.
An estimated US$163bn of assets are underinsured globally, according to new research from Lloyd’s and the Centre for Economics and Business Research (CEBR). The average insurance penetration rate in developed nations is twice as high as the average in emerging, or lower income countries, which account for almost all (US$160bn) of the global insurance protection gap.
Mactavish says a lack of understanding of insurance policies among UK boards leaves them at "significant risk" of insurers not paying out on claims. Issuing its stark warning today, the governance and consulting group added that, while the Insurance Act 2015 and the new Corporate Governance Code may have increased the focus on risk at board level, board members and senior directors do not adequately appreciate all of the dangers and threats facing their organisations -- an added factor in the probability of insurers not paying out of claims, it says.
Flood specialist JBA Risk Management has rolled out its high-resolution flood maps and associated pricing data for the continental US, starting with the State of Florida, which is at significant risk of flooding in many parts.
Insured wind and storm surge losses from Hurricane Michael will range from US$6bn to US$10bn, according to estimates from cat risk modelling firm AIR Worldwide. The storm struck near Mexico Beach in the Florida Panhandle on the afternoon of 10th October with maximum sustained winds of 155 mph (250 km/h). Michael was the most powerful hurricane to have come ashore in the Florida Panhandle since the first records were kept in 1851.
London company market premium income has jumped to £26.3bn, according to data from the International Underwriting Association (IUA). It says 2017 GWP was £18.331bn while a further £7.984bn was identified as written in other locations, but overseen and managed by London operations.
Small and medium-sized companies are confident about their prospects over the next five years despite ongoing Brexit uncertainty, new research from MetLife UK shows. The survey of companies employing between 50 and 300 staff – which make up around 34,000 businesses in the UK with an annual turnover of £541bn and employing 3.3m people -- found 76% are optimistic about their business prospects for the next five years, with more than a quarter (28%) saying they are very optimistic.
Ecclesiastical has joined forces with the Charity Finance Group to urge the Chancellor to make charities exempt from paying Insurance Premium Tax (IPT). The two organisations have been campaigning together to raise awareness of the impact of the continuing IPT increases on charities.
Some jobs are more risky than others. Individuals working in the emergency services, security, heavy industry or health and social care are clearly at greater risk of encountering psychological trauma due to the nature of their occupation. At the same time, though, very few in other, less obviously risky roles are completely immune to difficult or distressing events such as assaults on staff, serious accidents or injuries, robberies, or even the death or suicide of colleagues.
Storm surge warnings are in place in Florida following the arrival of the third-strongest storm in recorded history to hit mainland US. Hurricane Michael made landfall Wednesday afternoon as a cat 4 storm before being downgraded to a tropical storm as it weakened over Georgia. Two people have been killed.
The Financial Conduct Authority has set out its proposals in the event the UK leaves the European Union on 29th March 2019 without an implementation period. It has also set out its approach to the regulation of credit ratings agencies, trade repositories and data reporting services providers.
Demand for sustainability, good corporate behaviour and rapid digitisation are leading to profound changes in organisations and in the work of risk managers, according to the Federation of European Risk Management Associations. Whilst acknowledging the challenges, FERMA says this represents a huge opportunity for risk managers. “The risk manager can be a co-pilot for the board and top management in this transformation,” says president of FERMA, Jo Willaert.
Responding to the relaunch of the Association of British Insurers’ #IPTsUnfair campaign ahead of the Autumn Budget, Federation of Small Businesses (FSB) chairman Mike Cherry said the Insurance Premium Tax deters small firms from making the right choices.
The Chancellor is being urged not to further penalise responsible insurance customers in this month’s Budget. The Association of British Insurers (ABI) launching a sequel to its #IPTsUnfair campaign, which presses the government not to increase Insurance Premium Tax any further by demonstrating the absurdity of punishing people who are doing the right thing.
Allianz Global Corporate & Specialty (AGCS) is reshaping its Alternative Risk Transfer business into two new specialist teams. From next month, the Insurance-Linked Markets team becomes a standalone line of business known as Capital Solutions, led by current ART CUO Richard Boyd.
In its pre-Budget letter to the chancellor, business group the CBI has focused on three key areas it says are key to unlocking growth: reforming business rates to ensure firms can invest and grow, building on recent announcements to make the apprenticeship levy work; and improving capital allowances to drive investment – particularly in digital and low carbon technologies.
Driverless ships and aviation drones face fewer barriers to adoption than driverless cars, according to a survey among underwriting professionals, who express concern about a lack of associated infrastructures for autonomous modes of transport, as well as cost, technological capability, public perception and regulation.
Shred-It has released a new online tool designed to support businesses with GDPR compliance. The new GDPR Manager aims to help with accountability and compliance by guiding users through a six-step process from initial assessment to an ongoing action plan.
VisionTrack has launched a new monitored behaviour and First Notification of Loss service designed to aid prevention and to increase claims efficiency in the event of an incident. VT24/7 is the latest in a series of developments in the space, as in-vehicle technology becomes increasingly sophisticated.
Regulators are taking a tougher stance on ESG disclosure, according to a new report compiled by risk management software provider, Datamaran. In the last three years alone environmental, social and governance (ESG)-related regulations grew by over 100% across the UK, the US and Canada, indicating that the ESG regulatory landscape is picking up pace. The majority of sector-specific regulations published after 2015 are mandatory.
Workers in the UK believe that robots and automation more generally will deliver more interesting and creative jobs for future generations, but lack a full understanding of the technology’s capabilities, according to a report from robotic process automation provider, UiPath.
Willis Towers Watson has announced the launch of the Airport Risk Community (ARC), an initiative aimed at highlighting and tackling common industry risks. ARC’s purpose is to connect groups of professionals around the world, to share knowledge and insight by hosting events and to analyse data, and help the industry understand and take action on emerging risks and trends.
Following the government's announcement this week that the use of combustible cladding is to be banned on all new residential buildings above 18 metres, as well as schools, care homes, student accommodation and hospitals, FM Global has warned that this measure alone does not mean buildings are fire risk-free.
Arc Legal has launched a dedicated personal cyber assistance product for Saga, offering cover and support in the event of a cyber attack on a policyholder’s personal device.
The policy provides crisis response and incident management cover, offering immediate assistance following a cyber attack; as well as restoration cover to reinstate customer devices to their original state.
The Chartered Insurance Institute is opening a new office to cover the Middle East and Africa. The CII already has established links with the regulators and financial companies based in UAE and it is hoped that this new hub will help serve the region more effectively.
The CII has appointed Gaenor Jones as regional director, MEA, CII and Personal Finance Society.
The Financial Conduct Authority (FCA) has fined Tesco Bank £16.4m for failing to exercise due skill, care and diligence in protecting its personal current account holders against a cyber attack that took place in November 2016. Cyber attackers exploited deficiencies in Tesco Bank’s design of its debit card, its financial crime controls and in its Financial Crime Operations Team to carry out the attack.
The impact of on wholesale brokers in the London insurance market of today’s Insurance Distribution Directive implementation deadline of the will be manageable, according to the London and International Insurance Brokers’ Association (LIIBA).
Ongoing and, in some areas, increasing geopolitical concerns are causing a rise in political risk exposures with 55% of global organisations with revenues greater than US$1bn experiencing at least one political risk loss exceeding US$100m in value. This is according to figures from Willis Towers Watson, whose annual Political Risk Report, carried out with Oxford Analytica, highlights Turkey and Argentina as particular areas of concern.
Hiscox has today launched its new Influencer and Public Figure Protection insurance, covering the risks faced by influencers and high-profile individuals leading their lives in the public eye. It is thought to be the only such cover in the UK currently offering a tailor-made policy for influencers and public figures including breach of promotional contract.
The Information Commissioner’s Office has begun formal enforcement action against 34 organisations that have failed to pay the new data protection fee. The regulator has sent notices of its intent to fine the organisations unless they pay. Those that don’t could face a maximum fine of £4,350.
The government has today published its updated guidance on the future of intellectual property (IP) laws following the UK’s departure in March 2019 of the European Union. It says that while a scenario in which the UK leaves the EU without an agreement is “highly unlikely”, its series of technical notices will help businesses make informed plans and preparations in the event of a no-deal Brexit.
The Insurance Institute of London today announced that Nicolas Aubert, head of Great Britain for Willis Towers Watson, has been elected as the organisation’s new president. Having served first as a vice-president and then as deputy president for the past year, Aubert replaces Lighthouse Group’s Roger Sanders.
With measures to slash greenhouse gas emissions set to miss their mark, businesses should be preparing for the risks related to a changing climate, according to a report by Zurich Insurance Group. Published at the start of Climate Week NYC, a gathering of investors, governors and CEOs in New York, it recommends a three-step strategy to help companies strengthen their defences.
Lloyd’s has today announced a profit of £0.6bn for the first half of 2018. The market’s return to profit follows the severe catastrophe experience in 2017. Its interim report detailed a combined ratio of 95.5%, annualised return on capital of 4.3%, investment return of 0.3% and net resources of £29.0bn. The reporting period also featured an improvement in the underwriting result up to £0.5bn from £0.4bn last year.
Equifax has been fined the maximum £500,000 penalty for its breach last year which exposed data belonging to 146 million people around the world, including 15 million in the UK. The ICO investigation found that, although the information systems in the US were compromised, Equifax Ltd was responsible for the personal information of its UK customers. The UK arm of the company failed to take appropriate steps to ensure its American parent Equifax Inc, which was processing the data on its behalf, was protecting the information.
RSA has extended its suite of products to include cyber solutions for large and multinational businesses. An evolution of its existing cyber product for SMEs, the new solution been designed to provide comprehensive cover, assistance with risk assessment, and provision and management of post event support.
AIR Worldwide estimates that, to date, industry insured losses resulting from Hurricane Florence’s winds and storm surge will range from US$1.7bn to US$ 4.6bn. “Hurricane Florence, once a Category 4 storm, made landfall near Wrightsville Beach, North Carolina, at about 0715 on Friday, as a Category 1 storm with 90 mph winds,” said Dr. Peter Sousounis, vice-president and director or meteorology, AIR Worldwide. “As Florence approached the East Coast, it grew in size and exhibited multiple wind maxima, which are found in storms with abnormally low central pressure for a given maximum wind speed. As a consequence, strong winds extended well north of the landfall location up to the Outer Banks and into Pamlico Sound, which caused a high storm surge in this area.”
The UK’s small and medium-sized business have put GDPR compliance and cyber risk management ahead of any Brexit-related planning, according to a study conducted by Zurich. Almost a quarter (24%) of respondents to Zurich’s latest broker survey said that their SME clients now ask them about GDPR on a regular basis whereas regular enquiries about Brexit were recorded by just one in ten (10%) brokers; and over a third (35%) said that their clients never asked about the UK’s exit from the EU at all.
Marsh & McLennan is to acquire Jardine Lloyd Thompson Group. Under the terms of the transaction, holders of JLT’s common shares will receive cash consideration of £19.15 pounds per share. Total cash consideration equates to US$5.6b in fully diluted equity value, or an estimated enterprise value of US$6.4bn. The transaction will be funded by a combination of cash on hand and proceeds from debt financing.
The IRM is pleased to see that the new Financial Reporting Council (FRC) Corporate Governance Code places greater focus on risk. This includes an explicit mention in Section 1 ‘Board Leadership and Company Purpose’ – as recommended in the response IRM submitted to the FRC earlier in 2018.
Every risk manager measures conduct risk with more than half an eye on the regulator, and for good reason. However, regulators do not always have the last word in how their rules are interpreted; they are accountable to politicians, and politicians are accountable to the public.
What is the point of corporate insurance? Until recently that would have seemed a strange question. However, against a backdrop of disruption to business models, a shift from tangible to intangible assets and associated changes to risk profiles, businesses are seeking new insurance solutions and services appropriate to the digital age.
It will soon be ten years since David Cameron declared that the “age of irresponsibility is giving way to the age of austerity”. The austerity programme was initiated in 2010, since which time organisations delivering vital services to communities have faced tough challenges and difficult decisions. At the same time, it has also led them to embrace the risks posed by large funding cuts and to take forward some ambitious change programmes.
New research from the CBI demonstrates just how much consumers value information security today. The way companies treat personal data is the top concern for potential customers and business partners, with almost 9 out of 10 people identifying good data security and the protection of personal information as the key characteristic they look for when deciding where to spend.
AXA has today completed the acquisition of XL Group. The completion of the transaction follows the fulfillment of customary closing conditions, including approval by XL Group shareholders and obtention of regulatory approvals.
The government’s income from Insurance Premium Tax increased to £6bn for the year ending July 2018, up 22% on £4.88bn collected the previous year – a far bigger impact on businesses and consumers than had been predicted by the government, according to accountants UHY Hacker Young.
The Chartered Institute of Internal Auditors has called for tougher governance of large private companies, which, it says should have comparable corporate governance standards to publicly-listed entities. In its response to the Financial Reporting Council's consultation on The Wates Corporate Governance Principles for Large Private Companies, the audit watchdog urged the regulator to strengthen its proposed principles for large private companies – which is essentially a corporate governance code covering these specific businesses – by more closely mirroring measures contained within the UK Corporate Governance Code for public listed firms, coupled with a call for the regulator to take charge of monitoring the application of the principles.
AIR Worldwide estimates that industry insured losses from Typhoo Jebi, which made landfall in Japan on 4th September, will be between JPY257bn (US$2.3bn) and JPY502bn (US$4.5bn). The strongest typhoon to make landfall in Japan in 25 years, it struck as a cat 3 hurricane with 1-minute sustained wind speeds of 180 km/h (112 mph) before making a second landfall on the main island of Honshu striking the major urban centres of Kobe and Osaka with winds which, flipped vehicles, ripped cladding off buildings and downed trees and power lines. Jebi later intensified to become a super typhoon with wind gusts of over 190 mph, the equivalent of a cat 5 hurricane.
Aon is launching a new silent cyber reinsurance solution to protect insurance carriers' portfolios from exposure to these non-affirmative perils across multiple lines of business. The solution is designed to help insurers identify their silent cyber exposures through wording and threat analysis; and to quantify their exposures using bespoke scenarios. Modelling is provided by Guidewire's Cyence Risk Analytics.
Large insurers have stepped up preparations for IFRS 17 and 9, while smaller insurers have fallen further behind, according to new from KPMG International, which says 57% of of the large insurers (with premiums over US$10bn) it surveyed are in the design or implementation phase for IFRS 17, with almost as many, 64%, in a similar place with respect to IFRS 9. By comparison, among smaller insurers (with premiums under US$1bn), only 10% and 25% have started design or implementation for IFRS 17 and IFRS 9, respectively.
British Airways has reported a data breach that involves the access of customer names, email addresses and credit card information. The company suspects the breach was a result of criminal activity, and the National Cyber Security Centre is advising those who have used the BA website or mobile application to purchase services while the data was at risk (21st Aug-5th September) to contact their banks, ensure passwords are secure or change them, and also monitor financial accounts for any suspicious transactions.
AIR Worldwide and Capsicum Re are to develop a silent cyber modelling capability, whereby the two firms will identify which non-cyber lines of business and industries are more likely to be exposed to silent cyber-related losses.
The government has updated its guidance for the establishment and maintenance of resilience within critical national telecommunications networks and services. Last published in February 2011, and updated this week, the EC-RRG Resilience Guidelines bring together a wide range of advice and guidance on agreed best practice in the establishment and maintenance of resilience within telecommunications networks and services for communications providers considered to be part of the UK’s Critical National Infrastructure either because of the scale of their operations, or because they provide key services to other parts of the CNI.
High-profile failures, such as the recent collapse of Carillion, have contributed to a decline in public confidence in businesses. This is according to a CBI / Porter Novelli survey, which notes a 9% fall in confidence since the previous survey in October 2017. Business reputation declined in 10 out of the 12 regions in the UK, it said.
Risk reviews conducted by the Information Commissioners Office have revealed ‘areas of concern’ among eight different charities. The ICO conducted the risk reviews for a random eight charities after its enforcement against 13 charities in the period between December 2016 and April 2016.
Research by the Chartered Institute of Internal Auditors that has found cybersecurity has, perhaps unsurprisingly, been identified the number one risk facing organisations across the private and public sectors. The findings come from a survey of over 300 internal audit chiefs across Europe.
Retail sales grew at an above-average pace in the year to August, according to the latest CBI Quarterly Distributive Trades Survey. In a survey of 112 firms, yearly retail sales volumes growth accelerated to a pace above the long-run average.
Canopius has signed a partnership with credit and political risk MGA, Anvil Underwriting, which will allow Anvil to underwrite credit insurance, contract frustration and political risks on behalf of Canopius.
Agricultural insurance specialist Lycetts has invested in an advanced forensic coding system to help clients protect farm equipment and premises. Lycetts DNA+ combines an adhesive solution with uniquely coded micro particles registered exclusively to each client. This system provides irrefutable, traceable evidence of ownership and has been proven by the police to be a powerful deterrent to thieves.
The Institute of Risk Management and Solvay Brussels School of Economics & Management have launched a new enterprise risk management qualification. Participants of the first, two-day module will receive the IRM’s Risk Management Essentials certificate. Those that complete all five modules will receive an additional Executive Programme in Enterprise Risk Management certificate issued by Solvay Executive Education.
Willis Towers Watson and AXIS have launched a professional indemnity insurance solution with a £10 million primary limit for 11+ partner law firms. The cover extends beyond that outlined under the SRA Minimum Terms and Conditions.
The current head of international operations at Navigators Underwriting is to become the next CEO of LMA, following the announcement that David Gittings will be stepping down at the end of the year after 12 years in the role.
New research into the data habits of the UK SMEs suggests that many British companies are finding it hard to store and manage their company’s data effectively. The findings suggest many smaller organisations are still relying on USB drives as their primary data storage solution.
The number of UK firms with cybersecurity insurance has risen in the past year — but less than half say their cyber insurance covers all risks, according to a survey from research firm Ovum.
The Construction Industry Council (CIC) has launched a second survey to gauge the impact of last year’s Grenfell fire tragedy on insurance cover for the construction sector.
Reputation events such as cyber attacks have a direct impact on share price, according to the findings of a new report by Pentland Analytics and Aon. The 2018 Reputation Risk in the Cyber Age study looked at 125 reputation events during the last decade, measuring the impact on shareholder value over the course of the following year.
Cloud computing ranks as the top risk concern for executives in risk, audit, finance and compliance, according to a new survey by Gartner. While cloud computing presents organisations with novel opportunities, a number of new risks make cloud solutions susceptible to additional security threats.
Manufacturing output growth eased in the three months to August, according to the latest monthly CBI Industrial Trends Survey. The survey of 379 manufacturers revealed that output growth slowed slightly during this period but remained well above the long-term average.
The Environment Agency has launched a campaign to help businesses prepare for flooding. The agency’s flood resilience community engagement officers for the North-East have been in touch with more than 700 business there to raise awareness. Since 1998 there has been at least one serious flood a year with businesses more likely to be destroyed by flood than by fire.
Global economic losses from natural catastrophes and man-made disasters in the first half of 2018 totalled US$36bn -- well below the ten-year average of US$125bn in economic losses and significantly lower than the losses reported for the same period a year earlier.
REG has won a tender to provide on demand due diligence and agency management for Arc Legal. The specialist legal expenses provider will use the REG Network to decrease the time taken to onboard new customers and to increase the frequency and detail of its current oversight processes.
The Charity Commission is urging charities to put preventative measures in place to avoid falling victim to insider fraud. The regulator’s warning comes after the National Fraud Intelligence Bureau (NFIB) released a national alert highlighting the insider threat from fraudsters and cyber criminals. NFIB’s alert revealed that over 50 per cent of organisations have suffered an insider threat attack in the previous year and 90 per cent of businesses feel vulnerable to a cyber attack from within their own organisation. The Charity Commission points out that charities are just as vulnerable to insider threats as the private or public sector.
The Competition and Markets Authority (CMA) has launched an investigation into concerns that social media influencers are not properly declaring when they have been paid, or otherwise rewarded, to endorse goods or services. Typically, celebrities and influencers have millions of followers who watch their channels to see where they go on holiday, what they wear and which products they use. Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales. Where influencers are paid or rewarded to promote, review or talk about a product in their social media feeds, consumer protection law requires that this must be made clear.
Sungard Availability Services has bolstered its recovery services in Ireland. The expansion sees Sungard AS’ existing workplace recovery capability grow to 80 end-user positions on a shared basis, with additional space available for customers looking for a dedicated solution. Capacity for a further 100 shared positions is also available to meet demand.
BSI has published the revised international standard for auditing management systems, BS EN ISO 19011:2018. The document provides comprehensive guidance on both internal and external audits, covering a range of topics from the management of an audit programme to the planning and conducting of audits, and the competence of audit teams.
New research reveals a growing acknowledgement amongst insurance brokers of the importance of contributing positively to society, with charitable giving the most popular way of achieving this goal. The study, conducted by specialist insurer Ecclesiastical, suggests that, for the first time, UK brokers are making a significant contribution to their communities, responding to a growing consumer demand for a more responsible approach to business.
A number of people have been injured following an incident in Westminster this morning in which a car crashed into barriers outside the Houses of Parliament. Armed police arrived quickly and arrested the male driver of the car following the collision which occurred at 0737.
The shortlist for the 2018 Risk Management Awards has been published. This year's winners will be announced at a black tie gala dinner and ceremony on 8th November at De Vere Grand Connaught Hotel in Covent Garden, London. Now in their ninth year, the Risk Management Awards recognise those individuals, organisations and teams that have significantly added to the understanding and practice of risk management. 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 2019 Commercial Insurance Awards are now open for entries! Now in their sixth year, the Commercial Insurance Awards are the showcase for excellence within commercial insurance. The awards are unique in rewarding the particular issues around the insurance of commercial enterprises, and were created to celebrate the very best in commercial insurance.
Global commercial insurance prices rose, on average, for the third consecutive quarter, according to Marsh’s Global Insurance Market Index for the second quarter of 2018.
The increase was largely driven by insurance pricing for property lines, which continued to be affected by 2017 catastrophe losses, and by increases in financial and professional lines.
A second Brexit contract continuity clause has been issued by the International Underwriting Association, following its publication last month of a policy clause to help companies manage insurance contracts as the UK leaves the European Union. This latest publication features a supporting document for when risks are underwritten on a subscription market basis.
The British Insurance Brokers’ Association and Tokio Marine Kiln have launched a new drone insurance offering coverage for companies operating commercial UAS. Through the Lloyd's-backed scheme, BIBA members benefit from special terms and coverage for physical loss of or damage to UAS up to a limit of £100,000 per UAS (inclusive of payloads) whilst in the air, on the ground or in transit, including theft and malicious damage (larger limits available on request); and third party bodily injury and property damage liability – inclusive of losses arising from malicious acts up to a limit of £50M each occurrence, with larger limits available on an arranged basis.
While much of Europe remains gripped by a heatwave, it is still the region most insulated from the economic impacts of rising heat stress. This is according to analysts at Verisk Maplecroft, which identifies Africa and South East Asia as most likely to bear the economic brunt of rising temperatures as intensifying levels of heat stress are projected to cut worker productivity and hit export revenues over the next 30 years.
The Chartered Insurance Institute is looking for industry professionals to join its flagship talent programme: the New Generation Group. The 2018/19 class will be made up of 40 professionals from claims, underwriting, broking and the London Market.
The Financial Conduct Authority is to consult on rules and guidance to improve conduct standards and communications in the payment services and e-money sectors. The Consultation Paper proposes to extend the application of the Principles for Businesses and certain specific rules about promotions and communications so that they cover wider categories of businesses that it regulates (including businesses authorised or registered under the Payment Services Regulations or the Electronic Money Regulations).
Merger and acquisition activity in the insurance industry rose in the first half of 2018 with 186 completed deals worldwide, up from 180 in the second half of 2017, according to Clyde & Co’s 'Insurance Growth Report', released today. This marks the second consecutive six-month period of modest increases in the volume of transactions since the low point in H1 2017 that followed two years of steady decline.
According to the London Credit Consortium – a partnership of Liberty Specialty Markets, Canopius and The Channel Syndicate which provides capacity to the platform – Toredo was used for its first risk in June and now has a developing pipeline of transactions.
The average fine per prosecution brought by the Environment Agency against companies has increased six-fold in the last five years, according to research from global law firm Clyde & Co. Data obtained directly from the EA show that the average fine against a company in 2017/18 was £147,575, compared with £23,731 in 2013/14. While the number of prosecutions against companies has reduced to almost a quarter of where it stood five years ago (from 114 in 2013/14 to 32 in 2017/18), the average value of a fine has significantly increased.
Farmers are to be allowed to trade water allowances as part of Environment Agency efforts to support farms dealing with the pressures of the ongoing hot, dry weather. Following the driest June since 1925 and a dry July, farmers have reported water supply concerns which could affect the irrigation of crops and welfare of livestock. As the National Farmers Union’s drought summit took place, EA issued guidance to farmers detailing options to flex abstraction licences in serious cases, and on a short-term basis.
Since 25th May, the EU’s General Data Protection Regulation (GDPR) now applies directly to the UK and will be incorporated into UK law by the Data Protection Bill. There have been a number of reported cases involving data breaches within local authorities due to employee actions. All of these led to fines for the offending authorities, but also had significant reputational impact.
The terrorist attacks that took place in 2017 have led to a lower tolerance for risk within counter-terrorism investigations, which could result in earlier plot disruptions, leading to weaker evidential yields which would not be enough to convict suspects of the more serious terrorist offences which attract longer jail terms. This, in turn, would lead to quicker release from prison; and thus, the cycle of conviction, sentencing and imprisonment would be shortened, so amplifying the terrorism threat to business and people in the UK.
Sexual exploitation and abuse among the charity sector has been ongoing for a 'long time' and the sector is guilty of being almost 'complicit' in the scandal, a scathing report by MPs has revealed. The report, published by the International Development Committee today, explores the scale of sexual abuse among the aid sector following a wave of media reports that shed light on the issue earlier this year.
The UK government has enacted legislation to help achieve safer flying across the country. The new laws, which will restrict drones from flying above 400 feet or within one kilometre of airport boundaries, come into effect today, 30th July 2018. Following a year-on-year increase in the report of drone incidents with aircraft – with 93 in 2017 - these measures will reduce the possibility of damage to windows and engines of planes and helicopters.
Research conducted by Atradius reveals major shifts in the landscape of the global ICT sector, driven by advancing technologies and changing market conditions. In an environment of continuing uncertainty fuelled by ongoing Brexit discussions, interest rate increases, currency fluctuations and international trade disputes, ICT companies also face increasing pressure to improve time to market and to ensure that their offerings are best in class and include evolving technologies.
According to the London Credit Consortium – a partnership of Liberty Specialty Markets, Canopius and The Channel Syndicate which provides capacity to the platform – Toredo was used for its first risk in June and now has a developing pipeline of transactions.
Failure to capture and disclose key workforce data is keeping investors, employees and other parties in the dark on key business indicators. So says professional HR body, CIPD, which is calling for improved reporting and transparency from Britain’s biggest businesses. Research recently carried out by the organisation shows the degree to which workforce reporting has changed over the last five years and explores how transparent organisations are being about risks and opportunities relating to the workforce.
Brexit is the greatest structural challenge facing the London company market, according to International Underwriting Association chairman, Malcolm Newman. Addressing members as its annual general meeting today, Newman said that the UK’s break from the EU affected insurers, brokers and clients in varying ways, but that none felt as informed as they might expect to be.
Dawning awareness of the scale and severity of financial risks posed by artificial intelligence (AI) means that, in the next few years, London market underwriters will need to review their policies in a search for hidden AI exposure. So say experts at law firm Clyde & Co, which has issued a warning over policies containing hidden AI.
Already Allianz, AXA, Generali and SCOR have made the move, and the decision will have a considerable impact on German energy companies, with Germany having demonstrated a reluctance to give up on coal. In particular, RWE will be affected, having been a major investment for eight major European insurance companies. Following the moves now only two now remain - BNP Paribas and Munich Re.
With the market for cyber insurance developing continually, the International Underwriting Association is urging companies to scrutinise contract wording carefully before deciding on cover. In the new report from the association's Cyber Underwriting Group, companies are warned that not all triggers are included in every policy and that it is important, therefore, to perform an effective risk assessment before considering coverage options.
In its submission, FERMA acknowledged the time lag before the benefits of investing in non-financial matters become apparent following the initial short-term financial costs. It says that corporate risk management methodology, especially enterprise risk management, can mitigate the costs, because it is a pre-condition of ERM to identify the organisation’s principal risks, including those connected with good corporate citizenship, and consider how they can be mitigated.
Each year over US$3trn is laundered by criminals on a global scale, threatening the legality of everyday business outcomes. Money laundering is a risk to any organisation engaging in international trade, and it has become a growth industry in recent years – thanks in part to the internet. As a result, more industries and professional services have become subject to anti-money laundering (AML) regulation.
NTT Data UK has entered into a partnership to provide robotics services to Tokio Marine Kiln. NTT Data’s Cargo 10 Virtual Worker is the first of several planned Robotic Process Automation (RPA) initiatives at TMK. The service helps to automate marine transactions to deliver improved operational efficiencies and data quality – the end goal faster transactions, fewer errors and the ability to process transactions out of office hours.
RMS has released version 4.2 of the RMS Probabilistic Terrorism Model (PTM) and the update in RiskLink Version 18 of the RMS Terrorism Scenario Model (TSM). The update to the Terrorism Target Database includes the addition of new targets to reflect the construction of new, high-profile, urban properties as well as the removal of targets that no longer meet the criteria for target selection. There are also refinements in the latitude and longitude coordinates of key attack points.
As we hit the balmy summer, the Institute is by no means slowing down. We’ve launched our new joint training course for infrastructure risk with Turner and Townsend and are readying ourselves for the official launch of the new Certificate in Digital Risk Management. We have also published our first Asia-Pacific newsletter with the help of our growing Global Ambassador network, which now spans the Asia-Pacific and Oceania regions, India, the countries of South East Asia, China, Japan, Australia and New Zealand.
More than 550,000 new start-up businesses were established each month during 2016, of which FinTechs and InsurTechs accounted for 30,000. InsurTech start-ups alone have received US$20bn of investment since 2004. Some 33% of those funded between 2013 and 2015 had a focus on internal insurance processes; 61% by 2016.
At a recent conference on insurance regulation, the mood about the new world of Solvency II was decidedly downbeat. The feeling was that too many cooks were spoiling the broth. From the more prescriptive elements of the EU legislation to the layers of justification needed for any approach that deviates from convention, regulation was portrayed as a significant brake on innovation and the exercise of common sense.
The Chartered Insurance Institute is calling on employers to take action in reducing the sector’s pay gap. The CII has analysed all 192 insurers, intermediaries, service providers, financial advisors and loss adjusters in the UK who have published pay gap data, and identified an average gender pay gap of 24%.
The Financial Reporting Council has released the long-awaited 2018 UK Corporate Governance Code. The new, shorter code emphasises the importance of building trust in business by forging strong relationships with stakeholders; and calls for companies to establish a corporate culture that is aligned with the company purpose and business strategy, promotes integrity and values diversity.
Several days of record-breaking rainfall have led to widespread inland flooding in 11 prefectures across western and central Japan. The precipitation was described by an official at the Japan Meteorological Agency (JMA) as being at a level never before experienced. As well as numerous rivers and streams bursting their banks, many landslides have been reported. In addition to major damage to buildings and infrastructure there has been considerable business interruption. At least 180 lives have been lost, and dozens are unaccounted for, according to data issued on July 12 from the Fire and Disaster Management Agency (FDMA).
A report from Capgemini’s Digital Transformation Institute suggests that the financial services industry could expect to add up to US$512bn to global revenues by 2020 through intelligent automation, the right combination of robotics process automation (RPA), artificial intelligence (AI) and business process optimisation.
As reported by CIR, Airmic recently published the main findings of an in-depth report by Cass Business School into the implications of the fourth industrial revolution for business models and risk management. ‘Roads to Revolution’ found that existing principles of resilience need to be extended for opportunities to be realised and resulting risks managed. One important aspect is that of governance. In most large organisations, cyber governance has failed to reflect technology-driven changes in the way that companies are run.
Job losses in South East Asia resulting from automation are predicted to produce a spike in slavery and labour abuses in global supply chains unless governments take early measures to prevent automation threatening millions of livelihoods, according to a report published this week
A new survey on the state of internal audit finds auditors focused on delivering timely insights on key risks, aligning audit planning with business strategy, and improving audit processes and operational effectiveness. MetricStream’s research evaluated 600 organisations from 15 industries across the globe to understand internal audit management challenges, priorities, programme structures, and technologies used.
JLT Re has entered into a partnership with cyber risk modelling platform, CyberCube, whereby JLT Re’s existing cyber and enterprise modelling tools will be combined with CyberCube to help clients manage and measure cyber risk and exposure.
Business continuity transport and accommodation solution provider, CMAC, has acquired managed taxi specialist Cabfind from Transdev. The acquisition expands CMAC’s ground transport offer, establishing the largest available network of private hire, executive vehicles and coaches in the UK servicing wide range of industries including rail, airline, travel management and professional services.
Tokio Marine Kiln has bought the remaining 51% share in WNC Holdings – a managing general underwriter providing specialty risk management solutions including private flood, builders’ risk and lender-placed products. It expects approximately US$200m of net written premium in 2018.
Construction and engineering MGA and Lloyd’s coverholder, Ensurance UK, has launched engineering inspection and insurance cover through a strategic partnership with British Engineering Services.
DAS UK has launched a new suite of commercial products, available from today on its new quote and buy web portal, DAS Connect. Designed to suit a range of businesses looking for legal expenses insurance cover for employment disputes, property protection, personal injury, legal defence and tax protection, the products also provide access to a wide range of legal services and helplines that can be used as often as required including legal advice, tax advice, and counselling.
Travelers Europe has launched its new standalone cyber insurance product for the United Kingdom and Ireland. Travelers CyberRisk provides liability and first-party cover for losses from cyber attacks. It also provides access to assistance that can help limit client exposures to cyber events, including breach coaches, forensic investigators, public relations support and credit monitoring services.