Regulatory activity under the European Union’s General Data Protection Regulation certainly increased during 2019, but not quite to the ‘mega-fine’ degree that was expected. The most notable outcome from a year with the GDPR was instead the considerable variance in penalties issued by different regulators throughout the bloc.
The volume of risks facing schools has increased for almost two-thirds of teachers in the past five years – with both pupils and teachers suffering from poor mental health as a result.
Questions were asked of teachers from both the public and private sectors.
Guy Carpenter has entered into a global, multi-year agreement with Karen Clark and Company to license its catalogue of natural catastrophe models, execution software and analytics.
The number of patients in England to have tested positive for coronavirus has increased from nine to 14. In these four new cases, the virus was passed on in the Diamond Princess cruise ship. Chief medical officer, Chris Whitty said the patients are being transferred from Arrowe Park to specialist NHS infection centres.
Robotic process automation, machine learning and artificial intelligence will drastically speed up manual processes in the London Market, and form part of the market's plans for modernisation, as it seeks to ensure it maintains its competitive edge.
Tokio Marine Kiln has launched an enhanced cyber insurance policy designed to protect clients against the threat of physical damage stemming from cyber attacks.
A week after Windstorm Ciara, Windstorm Dennis brought flood- and wind-related damage across parts of Europe, with Germany, France, Belgium and the UK bearing much of the brunt, and killing at least six people.Total economic losses from these events are expected to exceed £78m, and ongoing flooding continues to effect transport infrastructure.
Manufacturing supply chains are being slowed by the coronavirus outbreak, as factory closures in China hamper deliveries of components and parts. This is the conclusion of analysts at ING following the publication of the latest UK purchasing managers indices from IHS Markit/CIPS.
The number of patients in England to have tested positive for coronavirus remains at 9, as it has been for over a week. According to the Department of Health and Social Care and Public Health England, as of 19th February, a total of 5,216 people have taken themselves to be tested for the virus.
The personal details of more than 10.6 million MGM Resort guests are reported to have been published on a hacking forum. Amongst them, personal and contact details for a number of high-profile individuals including celebrities, tech CEOs and government officials.
The number of patients in England to have tested positive for coronavirus remains at 9, as it has been for a week. According to the Department of Health and Social Care and Public Health England, as of 18th February, a total of 4,916 people have been tested for the virus.
Home secretary Priti Patel is today launching a new points-based immigration system for the UK, in a move that seeks to put to an end the reliance on cheap, low-skilled labour coming into the country, and ceasing free movement from 1st January 2021.
The clock is ticking! It's time to finalise your entries for the 22nd annual Business Continuity Awards -- the industry's best-loved event and the pinnacle of achievement in business continuity and resilience.
Riskline has expanded its collection of City Safety Maps to cover 250 cities, detailing city-specific threats and other local knowledge down to street-level and including data on high crime zones, protest flashpoints and other areas of concern.
Everbridge has introduced a new specialist risk intelligence package to assist organisations in managing the impact of the coronavirus on their people, assets, facilities, supply chains and brands.
The oil, mining, metals and extractive industries continue to make up the most significant proportion of demand for specialist credit and political risk insurance coverage. This is according to data from broker, BPL Global, whose annual Market Insight report points to an increase in enquiries from OECD countries – a continuing development from historical demand for CPRI to cover emerging market risk, it said.
The number of patients in England to have tested positive for coronavirus remains at 9, as it has been for almost a week. According to the Department of Health and Social Care and Public Health England, at 16th February, a total of 3,109 people have been tested for the virus.
As the second weekend of severe winter storms threatens the UK, businesses are being urged to take additional precautions to ensure buildings and other physical assets are secure during the anticipated winds.
Willis Towers Watson has launched an internal programme aimed at supporting staff in need and engendering a culture of respect in the workplace.
Control Risks is to partner with Everbridge to offer a new technology-driven solution to crisis management challenges. In a significant alliance, two of the market’s best known names aim with this alliance to “digitally transform how businesses achieve organisational resiliency” by managing the full lifecycle of a critical event.
The number of patients in England to have tested positive for coronavirus has reached 9, as the World Health Organisation announces the official name for the disease caused by the coronavirus as COVID-19.
CFC has launched new cover for event organisers, combining cancellation coverage, general liability and commercial property. The policy protects organisers against various liability exposures and includes cover for contents lost or damaged in transit as well as additional expenses like temporary repairs.
Emergency legislation introduced in Parliament today will end the automatic early release of terrorist offenders, in a move that sees the government taking decisive action following the recent attack in South London.
According to WHO’s latest Situation Report, published 9th February 2020 and covering the last 24 hours, there were 37,558 confirmed cases globally (of which 2,676 were new). It may be too soon to draw conclusions from this data, but meantime disruption resulting from the outbreak is ongoing, and will be for some time.
Commercial property insurance policies are leaving businesses exposed to technology risks such as data loss, according to Mactavish, which reports a significant increase in policies that have removed this element of cover, even if the loss arises from a ‘traditional’ property loss, such as fire.
An independent advisory body for the ethical use of data-driven technology has concluded that existing regulation falls behind the public’s expectations, bringing the issue of social media regulation under fresh scrutiny once again.
The recent and quite rapid spread of the novel coronavirus (nCoV) throughout China has become a cause for concern in global markets. Domestic demand in China, where the outbreak is at its most concentrated, has already been affected.
Many businesses are struggling to adapt to the challenges of a digital workplace as senior management admit that they may not be doing enough to address their digital skills shortage, according to a new report by the Open University (OU).
The Marine Climate Change Impacts Partnership (MCCIP) has released a report on the current and future impacts of climate change in the UK warning of disruption to operations – especially ports – from the effects of climate change.
Several countries have closed their borders to travellers from China in response to the coronavirus outbreak. The US, Australia and Singapore announced that they are denying all foreign visitors who have recently been to China, while New Zealand and Israel have closed to foreigners travelling from mainland China.
Chubb has launched a new insurance package aimed at bridging gaps in traditional terrorism business interruption policies. Non Damage Terrorism Solutions is a single policy offering non damage business interruption, with employee and customer care assistance as a result of a terrorism loss. The policy also provides event cancellation coverage following an act or threat of terrorism, including an extension for War.
Despite higher levels of investment in advanced cybersecurity technologies over the past three years, less than one-fifth of organisations are effectively stopping cyber attacks and finding and fixing breaches fast enough to lower the impact, according to a new report from Accenture.
Three days after the UK exited the European Union and attention now turns to the future trading relationship between the two, as well as to the near-term economic impacts on businesses resulting from over three years of frustrated negotiations. In terms of fortunes, the picture is mixed.
One third (32%) of UK firms were victims of data theft in the last 12 months, which is higher than the global average of 29%, according to a recent report by risk consultancy Kroll. The study also revealed that two thirds (66%) of UK firms view large-scale, coordinated cyberattacks as a significant future business risk, but despite this fear, almost a quarter (23%) do not have confidence in their cyber security controls, and 30% don’t feel their risk management processes are effective.
Only one in five UK financial services firms have a well-developed strategy to manage the potential risks of climate change, according to a new report.
The death toll from the coronavirus outbreak in China has risen to 170, with more than 7,700 confirmed cases within the country as heath authorities report that the virus has now reached every region in mainland China.
CEOs have expressed high levels of concern regarding the increasing sophistication of cyber-attacks, as almost half have taken action to personally protect themselves from malicious actors by deleting social media apps.
Foreign exchange company Travelex has announced that its IT systems are back up and running following a crippling ransomware attack that forced the firm to disconnect its service from the internet.
The UK will leave the European Union on 31st January 2020 at 11pm, entering into an implementation period which is due to last until 31st December 2020, and during which time, EU law will continue to apply. The UK’s Financial Conduct Authority has said that during this time firms and funds will continue to benefit from passporting between the UK and EEA; and that consumer rights and protections derived from EU law will also remain in place.
The UK government has announced that UK operators should put in place additional safeguards and exclude high risk vendors from parts of the telecoms network that are critical to security. But it has stopped short of total block on the use of Huawei within the country’s 5G network, despite pressure from the US to do so.
Appliance manufacturer Whirlpool has been forced to add three additional washing machines to its recall list of fire-prone products. A fault caused by an overheating door mechanism on some of its Hotpoint and Indesit branded models has been the cause of a problem that is believed to have led to 79 fire incidents.
Insurer Hiscox has added new extensions to its technology insurance offering. UK-based companies with a turnover of under £2m can now get coverage for unlimited business interruption, with the technology insurance product offering to cover loss of income and loss of gross profit and increased cost of working.
Worries over the continued spread of the coronavirus have shaken the financial markets with stocks from Wall Street, London and Tokyo all seeing a decline. Airlines and other businesses with major sales or operations in China saw their shares dip as the scale of the issue became clear.
The latest catastrophes annual report from Aon reveals that the 409 natural catastrophe events of 2019 resulted in economic losses of US$232bn – 3% below average annual losses for this century, but 20% lower than the previous decade. Of that total, private sector and government-sponsored insurance programmes covered US$71bn of the total. This means the protection gap, which is the portion of economic losses not covered by insurance, was 69% in 2019 – the fifth-lowest since 2000.
Mental-health-related issues are costing UK employers up to £45bn each year – a rise of 16% since 2016 – according to research from Delotte.
The number of businesses in significant financial distress has risen to 494,000, with the real estate and property, support services, construction and retail the sectors particularly badly affected, according to research by insolvency firm Begbies Traynor.
Fourteen people have been tested for the China coronavirus in the UK, according to Public Health England, amid increasing fears the virus may have already spread to Britain from China. However, there are no confirmed cases of the disease, and the World Health Organisation says it is too early to declare an international public health emergency. While the risk to the public remains low, universities in the UK have followed Foreign Office advice warning people not to travel to the affected region.
The cyber criminals responsible for disrupting high-street banks and the foreign currency exchange chain Travelex for over three weeks have launched another cyber attack on a German automotive parts supplier.
Greece is feeling the effects of the migrant crisis with over 3,000 migrants landing on its shores in the first few weeks of 2020. Approximately 75,000 people crossed illegally to EU member Greece from Turkey last year according to a UN refugee agency, an increase of nearly 50% on the previous year.
Firstly, as this is my inaugural column for CIR, I’d like to thank outgoing chairman Socrates Coudounaris for his unerring work in this post over the last couple of years. I am in the fortunate position of being able to build on the good work done by the CEO, staff and the immediately preceding chairs in stabilising the Institute’s financial position, building a strong board and starting the next phase of our growth. We are now in a position where we can capitalise on that financial strength to drive towards fulfilling the Institute’s vision.
A coalition of public and private sector organisations has launched an initiative to galvanise investors to tackle the issue of antimicrobial resistance. The Investor Year of Action on AMR is backed by the UN-Supported Principles for Responsible Investment, FAIRR, the Access to Medicine Foundation and the UK Department of Health and Social Care.
The World Health Organisation, which was first alerted to cases of pneumonia in Wuhan City, Hubei Province of China on the 31st December 2019, has recently published its first Situation Report 2019-nCoV.
Technology disruption, coupled with businesses expecting higher returns on investment, has generated demand for cloud infrastructure, with hybrid cloud still considered the ideal IT model for enterprises, and in the UK in particular, according to the second Enterprise Cloud Index Report by Nutanix.
Enhanced monitoring will be put in place for all direct flights from Wuhan, the area of China at the centre of the coronavirus outbreak, landing in the UK according to the Department of Health and Social Care.
Over two weeks after the ransomware attack that forced Travelex staff offline to calculate foreign currency exchanges, the company has said that some systems are back up and running.
The firm has released a number of short statements since cyber criminals held the firm to ransom on 31st December 2019, causing chaos for New Year holidaymakers and business travellers seeking online currency services.
A suburban pharmacy in London has become the first UK company to be issued with a fine under the General Data Protection Regulation rules. Doorstep Dispensariee Ltd, a pharmacy based in Edgware, was handed a £275,000 penalty by the Information Commissioners Office for its “cavalier attitude to data protection”.
An outbreak of a new pneumonia-like illness was first reported to the World Health Organisation on the 31st December 2019, and as confirmed cases of the coronavirus increase, fears of major global outbreak are growing.
EU regulators are considering a ban of facial recognition technology in public places until a technique of measuring the impact risk of its use can be fully understood. The EU already has some of the strictest regulations in the world when it comes to personal data and its use, so similarly strong standards are being sought for biometric data.
The last decade has been confirmed as the warmest on record by three global agencies. By 2035 it is forecast to reach a critical level of 1.5°C above pre-industrial levels. According to NASA, NOAA and the UK Met Office, last year was the second warmest year, coming in around 1.7 degrees Fahrenheit above the 20th-century average, just shy of the record set in 2016.
Ignite Insurance Systems has created a gateway with LexisNexis Informed Quotes platform, giving insurer and broker clients access to a wide range of personal and commercial risk data to support risk decisions at the point of quote. This includes the Lexis Nexis No Claims Discount Module, allowing insurance providers to see their own data in context with the rest of the market, improving the customer experience and delivering more accurate first time quotes.
Virsec has partnered with ProtectedIT to offer advanced cyber security protection to its customers in the US. With the dramatic rise in cyber attacks, companies are struggling to maintain visibility over critical applications and stop attacks that bypass standard security tools.
Analysts and researchers at Verisk Maplecroft say civil unrest in Hong Kong and Chile is unlikely to improve over the next two years. These countries are amongst those to have seen the greatest increases in risk over the last year. A further 73 are projected to see an increase in civil unrest during the next six months.
A major report has called for collaboration between leaders, businesses and policymakers if threats to the climate, environment, public health and technology systems are to be tackled. The WEF’s Global Risks Report points to growing economic and political polarisation as the greatest short-term risk, and one that is leading to an “unsettled unilateral world of great power rivalries”.
Beazley has introduced a flexible suite of D&O liability products, ranging from a single policy to cover the organisation and its directors, through to policies addressing the specific needs of individuals.
Specialist insurer, Beazley has entered into an agreement with cyber protection firm, Kynd, that will extend enhanced cyber risk management services to international policyholders.
Hiscox and CyberCube have entered into an agreement that will give the insurer access to the provider’s Portfolio Manager product to stress test its book of global commercial insurance business against a range of cyber-related catastrophe scenarios, generating better insight into potential systemic cyber risk.
Business continuity and disaster recovery provider Databarracks has bid farewell to Windows 7 with a Viking funeral. After 10 years, Windows 7 support ends tomorrow, 14th January 2020.
Recent tensions in the Middle East will lead to insurers and reinsurers imposing “draconian conditions” in policies and raising rates “exponentially” in the coming months, according to specialist law firm DWF. That all UK flagged ships in the Strait of Hormuz are being escorted by UK navy vessels has done little to restore the status quo in the region, or confidence among politicians or businesses with assets there.
The problems plaguing foreign exchange firm Travelex reflect a trend among cyber criminals to deploy ransomware attacks. This is according to cyber analytics firm, CyberCube, which is warning that ransomware attacks could become so widespread they may stifle economic growth.
While southeastern Australia saw both cooler temperatures and even rain Monday, fire risk is still expected to intensify as temperatures of more than 40°C, dry conditions and strong winds are forecast for today and tomorrow.
Following the death of Qassem Soleimani, arguably the second most powerful man in Iran, there are a number of potential scenarios in the surrounding region over the coming months. While Iran’s response is unpredictable, it is most likely that direct conflict between the US and Iran on Iranian soil remains unlikely. Proxy attacks will increase significantly over the coming months, which will trigger American drone and airstrikes on Iranian proxy groups’ positions.
The Chartered Insurance Institute has warned data alone won’t prevent future consumer detriment, as it responds to the Financial Conduct Authority and Bank of England proposals for improvements across the UK financial sector.
The already high risk of oil supply disruption in the Middle East has risen further on the back of Iranian attacks on US assets in Iraq. Several rockets were fired overnight -- the Pentagon confirming that two US assets were targeted in retaliation for the killing of Qasem Soleimani last week.
In 2019, 820 natural catastrophes caused overall losses equivalent to £115bn. A smaller portion of losses was insured compared with 2018: about £40bn. This is according to data from Munich Re, whose CEO, Torsten Jeworrek, says buildings and infrastructure must be made more resistant if the increasing trend in losses is to be reversed.
The Financial Conduct Authority and the Bank of England have today detailed plans to develop their data and analytics capabilities. A new data strategy outlines the FCA’s increased focus on the use of advanced analytics and automation techniques aimed at deepening the regulator's understanding of how the markets are functioning.
CFC has today released its new cyber excess solution, giving small and medium sized businesses access to up to £10m of excess cyber capacity. Offered globally and built for organisations with up to £1bn in revenue, the policy also provides an automatic reinstatement of the excess limit as standard.
Artificial intelligence has been a staple of dystopian sci-fi for decades. Who could ever forget HAL’s starring role in Kubrick’s 1968 classic, 2001: A Space Odyssey? But it’s only in recent years – thanks to the advent of machine learning, secure cloud storage, low-cost mobile devices and cheap high-speed internet – that the incredible possibilities of the past are now a reality.
The deployment of 5G wireless networks is likely to be the single biggest technological change for society over the next few years, according to predictions from the International Underwriting Association’s Developing Technology Monitoring Group. It says that, because 5G will lay the foundations for so many other new developments – from communication using 3D holograms to augmented reality glasses – the associated risks and exposures are numerous and complex.
Terrorism reinsurer, Pool Re has expanded its definition of SME to encompass businesses with assets up to £5m – more than doubling the previous figure of £2m. This means that cedant insurers can more easily integrate cover within their automated SME offerings; making the cover more affordable and accessible.
It is my prediction that 2020 is going to be perhaps one of the most interesting years to be in the assistance and claims industry as unexpected partnerships and major acquisitions are announced, and for the first time ever; agencies assess how to regulate a previously unregulated industry in a move which has been a long time coming.
Total global economic losses from natural and man-made catastrophes fell to around £107bn in 2019 from £134bn last year, with insured losses estimated to be around £43bn, down from £71bn in 2018 and below the annual average (£57bn) of the previous 10 years. As in recent years, secondary perils accounted for over half of the insured losses.
On January 14th, Windows 7 will reach its end, and applications on legacy Windows operating systems will no longer be supported. And, according to recent research from Cloudhouse, this could expose over 90% of UK FTSE 250 and 100 companies to security vulnerabilities.
Three quarters of SME senior decision makers in the UK and Ireland believe their businesses can help tackle climate change, according to research conducted by Close Brothers. Some 94% of SMEs say they have policies in place to reduce their impact on the environment. The most popular steps they are taking to help tackle climate change include recycling, being energy efficient, and going paperless.
Eurobase has become a Licensed Integrator Partner of ACORD Solutions. ACORD Data Standards are widely used throughout the insurance industry, with members accounting for half of global GWP.
The insurance industry must address the issue of silent cyber risks hiding within traditional cyber insurance products. This is among the conclusions of a report published today by cyber risk analytics firm, CyberCube. It says that pressure from reinsurers to remove ambiguity from primary contracts will force the hand of cedants.
The CBI has welcomed the government’s plans to add a new clause to the Brexit Bill to rule out any extension to the transition period beyond the end of 2020, adding that firms stand ready to support the government in getting a good trade deal agreed as quickly as possible.
Uptake of M&A insurance across EMEA has risen over the last 18 months, despite a fall in overall deal activity in the region. This is according to a joint report from Aon and Mergermarket which highlights a fall in deal value in EMEA of almost a quarter over the first six months of 2019, from £521bn in H1 2018 to £403bn in H1 2019.
A big year for insurtech.
Thomas Miller Specialty has concluded the purchase of Lodestar Marine’s book of business.
The Conservative Party has won a staggering majority in the UK general election, returning Boris Johnson to Downing Street with a mandate to push his Brexit deal through parliament, and to bring to an end a period of deep uncertainty for businesses and the public -- not just in the UK, but also in trading nations.
The value of GDP at risk from commodity price shocks, extreme weather, power outages and pandemics has risen, according to research published today by Cambridge University. It suggests that as much as £443bn, or 1.55% of GDP, could be wiped off the global economy by catastrophic events in 2020.
An influx of established aerospace, automotive and technology companies into the urban air mobility market, backed by technological advancements and government initiatives, is expected to drive the market for air taxis, according to research from Frost & Sullivan.
Industry research suggests environmental and climate change remains a top of mind risk for global insurance CEOs. This is not a surprise given the number of severe disasters in recent years, from floods, hurricanes, typhoons, droughts and wildfires. So, the sector must continue to be heavily involved in managing the risk.
Will 2020 remain a period of change and instability, and will that bring significant challenges? I believe it will, and there are many drivers for this.
Insurtech futurologist at Guidewire Software and TedTalk speaker, Laura Drabik has these thoughts on how 2020 will see closer relationships between insurers and insurtechs focused on customer convenience:
Willis Towers Watson has launched an out-of-the-box software solution designed to help P/C insurers implement one of the most significant and complex changes to insurance accounting requirements for a generation.
Working with operational risks is not a tick-in-the box exercise. A structured team works with operational risks and incidents leads to a better risk culture, increased efficiency in the organisation and creates business value. The Financial Conduct Authority is increasingly undertaking independent reviews of regulated firms which are focused on risk culture. However, while the FCA guidelines on risk culture set out the principles to be followed and how to define, measure and manage it, there is no practical guidance on how to embed a sustainable risk culture in operational systems.
Flooding and storms in Europe result in significant economic losses in November, with the impact in Italy alone expected to near the equivalent of £1.5bn. This is according to Aon’s Global Catastrophe Recap report, evaluating the impact of the natural disaster events that occurred worldwide during November 2019.
Confidence is predicted to remain low among UK-based professional services firms in 2020. Only 34% (just over one third) expect to feel confident in their ability to grow and prosper in 2020, while 80% believe they will be operating in a moderate to high risk environment.
The Institute of Risk Management has announced the appointment of Iain Wright, chief risk officer for Europe at Great-West Lifeco, as chairman. Mr Wright has served as deputy chairman since May 2018 and as chairman of the Audit & Risk Committee since December 2016. He takes over from Socrates Coudounaris, executive director of ERM at the Reinsurance Group of America.
New safety measures for drone operators, including registration requirements and the introduction of an online test, have been welcomed by the International Underwriting Association, which has long campaigned for change in UAV regulation. Now, anyone responsible for operating a drone weighing more than 250g must register their details with the Civil Aviation Authority and answer a series of multiple choice questions or face a fine of £1,000.
The use of non-payment insurance by banks should be recognised in regulatory capital calculations, according to the Lloyd’s Market Association. This was the core message in the association's response to the European Commission’s consultation on implementation of the Basel III reforms.
The Bank of England, Prudential Regulation Authority and Financial Conduct Authority this morning published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in financial services.
With the onset of climate change, flooding is no longer considered to be a once in 100 year event for many communities. This was demonstrated earlier this year with the flooding in Fishlake, South Yorkshire and the surrounding area. It is now clear that around 5 million people live within flood risk areas in England and Wales with one in six homes in England at risk of flooding.
Hampshire County Council has been fined £1.4m after a six-year-old girl playing on an unsecured street bollard suffered a life-changing head injury. The child climbed onto the cast iron hinged bollard, which then fell to the ground taking her with it. As a result, she suffered serious, life-changing head injuries -- the full extent of which will not be known until her brain has matured.
My prediction for 2020 is that we will see a rise in the regularity and impact of climate change protests. This protest movement is here to stay and will only get more regular and more militant as the climate emergency deepens over time. From a resilience point of view, organisations will need to review their risk assessments. Recognise any threat of being targeted because of how your business might impact on climate change, and consider the possibility of being caught up in a protest occurring in your area (in particular if you have offices in a large city), or affecting a supplier. The internet and social media make protests easier to organise and easier to target specific organisations.
Public Health England has urged people to prepare for the cold weather and look out for individuals most at risk, as temperatures have struggled to reach double digits in the last few days.
Confidence among business leaders in organisational resilience has fallen for the first time since 2017, according to figures from the BSI, which concludes that businesses are struggling to adapt to new technology amid political and economic uncertainty.
Just one in five UK companies employs a chief risk officer, according to research amongst 250 UK business leaders by Gallagher. Where there isn’t a CRO in place responsibility for managing risks most often falls to the CEO, despite their lack of specialist risk knowledge.
A number of people have been injured following a stabbing at London Bridge today. A knife-wielding man was shot by officers on the bridge following the attack, after having been wrestled to the ground by members of the public.
Climate risk is becoming a major concern for the airport sector, with flooding also a key area of risk. This is according to a poll conducted by Willis Towers Watson at its recent Airport Risk Community conference, and which highlighted the top 20 risks faced in the sector.
The adoption of fully automated shipping could take decades, not years. This is according to a poll conducted by law firm, Kennedy's among 6,000 people, including industry leaders in the transport and insurance sectors.
Finance and insurance firms invested the most on cyber security to 2019, at an average of £22,050 – a 23% increase on the previous year.
This is according to figures from Specops, which show that businesses in health/social care/social work spent the second highest amount (£16,800) on cyber security – a staggering 506% rise on the year before
Industrial insurer, HDI Global has launched a new system for end-to-end support of the underwriting process. The Underwriting Workbench is a central application that takes underwriters through the process, supports pricing and consistently records relevant data.
Origami Risk has expanded its operations in the UK and EMEA with the London appointments of Mary Upshaw as head of Professional Services, EMEA and Daniel Efting as client executive.
Lloyds Banking Group, Bank of America and Société Générale are among the poorest performers in human rights considerations according to a report published today.
The ten most serious GDPR breaches this year led to a total £345m in fines, with the three highest penalties making up almost 90% of the total. This is according to research from PreciseSecurity.com, which is warning organisations to protect consumer information to the letter.
The aviation team at Willis Towers Watson has entered into a partnership with the Airport Operators Association, in an industry that faces complex and fluid risks.
VPS Highway Solutions has developed an integrated safety solution for highway maintenance personnel. The system alerts road workers to the danger of an approaching vehicle, using a high-definition camera system mounted on self-powered VPS Smart Towers, and linked wirelessly to sounders fitted on traditional cones.
Government and business must work together after the general Election to restore trust in how British companies are run, according to the Institute of Directors.
Publishing a manifesto paper the IoD has set out a ten-point plan and called on government to support the establishment of a Code of Conduct with ethical standards for directors and a minimum requirement of governance knowledge and skills.
Businesses need to be cognisant of their working practices and aware of every link in the supply chain and the impact if something goes wrong. Can you safely say you know every link and its provenance? The UK’s Modern Slavery Act 2015 includes an innovative transparency and reporting clause (section 54; Transparency in Supply Chains) requiring larger organisations to make an annual ‘slavery and human trafficking report’ setting out what they do to ensure that slavery and human trafficking is not taking place in any of its supply chains, nor in any part of its own business.
Software provider, Software Solved has launched an insurance division, offering risk management, underwriting, distribution and data visualisation solutions for the sector. Software Solved already works with a number of major UK insurers in their digital transformation projects, including RSA Group, for which it created the real-time risk data platform, RSAred.
Allianz Global Corporate & Specialty has today launched a risk consulting, captive fronting and crisis management solutions offering for its corporate clients.
End-of-life equipment is leaving organisations at high risk of security and compliance breaches. According to a study conducted by Coleman Parks and Blancco, almost three-quarters of respondents agreed that the large volume of different devices at end-of-life leaves their company vulnerable.
On the 9th December, the final phase of the Financial Conduct Authority’s Senior Managers and Certification Regime (SM&CR) comes into place. What the FCA calls ‘solo regulated firms’ – firms that are regulated by the FCA but not the Prudential Regulatory Authority – must identify senior managers who will take responsibility for consumer outcomes. The new ‘duty of responsibility’ that will fall on these managers will make them accountable not only for everything that they do, but also for everything that a reasonable person would do if they had the same responsibilities. As a result, the SM&CR is as much about the problems that people don’t have the time or energy to deal with, as it is about deliberate acts of wrongdoing.
Optio Group has today launched a political risk offering for foreign direct investors in high-risk markets.
The Federation of European Risk Management Associations has today launched three research reports on the implications of artificial intelligence for risk management, cyber risks and GDPR -- reflecting the focus on digitalisation of FERMA's 2019 Risk Management Forum.
Next year will define the UK for a generation, and, whoever is in power after the election, their priority must be to work with business to provide better answers to the challenges facing the UK. This was the message from CBI director-general, Carolyn Fairbairn, speaking at the business group's conference in London today.
A few decades ago, the value of most companies comprised hard physical assets. Turn the clock forward to today and most hold their value in intangible assets. To put some context around this, back in the 1980s the US Patent and Trademark Office received less than 100,000 utility patent applications a year. Today it receives more than 500,000 annually and while big names like Samsung and Apple are awarded patents in the thousands, small businesses are also landing new patents at record levels.
Dealing with unknowns is part of the territory as a risk manager – it is integral to the job. But the level of uncertainty surrounding the possible outcomes and timings of Brexit is proving a huge challenge for even the most seasoned risk professionals. The range of scenarios businesses must prepare for is vast. This is a huge operational challenge first and foremost, but it is also proving an obstacle to getting senior management buy-in. As such, some of our members report that the lack of clarity is making it hard to get businesses to engage with – and allocate budget for – the potential impact of Brexit on their firms.
How do the most successful companies deal with a crisis? What are business leaders really thinking and feeling whilst neck-deep in the worst crisis their companies have ever seen? Thanks to PwC (and assuming their questions were answered honestly) we now know that they include a range of feelings from ‘stressed, anxious and frustrated’, through ‘abandoned, out of control and angry’ to ‘resentful, devastated and embarrassed’. Words and feelings like ‘confident, resilient, determined and focused’ were cited much less by the respondents to the survey.
With the proliferation of social media, news of a crisis can spread instantaneously, and response tactics have a huge impact on a company’s resilience.
Crisp’s 2019 Crisis Impact Report reveals the increasing power of communications on social media, the power it holds in the wake of a corporate crisis and the impact it can have on commercial reputation.
A new method for assessing and comparing different types of risk in the consumer sector has been developed by the Centre for Risk Studies at Cambridge Judge Business School and the Institute for Risk Management.
Governments around the world must step up their preparations for a minimum sea level rise of one metre this century and be planning for up to three metres, according to a new report from the Institution of Mechanical Engineers (IMechE).
UK flood modelling firm Fathom has partnered with natural hazard and climate impact risk assessment technology company Coastal Risk Consulting, to offer flood mapping in risk reports for US property owners.
The government and the construction sector have been urged to make big changes if the UK’s 2050 zero carbon target is to be met. The National Federation of Builders’ major contractors group has called on government to act immediately to address how construction – the largest contributor to UK carbon emissions – can help the UK to meet its stated goals on carbon reduction.
Commercial insurance pricing increased 8% in the third quarter of 2019 according to figures released by Marsh. The rise represents the largest quarterly increase since the survey began in 2012, and the eighth consecutive quarter of average price increases.
A new survey commissioned by Mactavish reveals that almost a third (30%) of private equity professionals describe the due diligence that private equity firms carry out on cyber security issues of target companies as ‘average’, and 27% consider it to be ‘poor’ or ‘terrible.’ The research suggests that there is still much work to be done, with only 23% describing the current level as ‘good’ or ‘excellent’.
The Labour Party has experienced a large-scale cyber attack on its digital platforms but says it is confident that no data has been breached. As campaigning for next month’s general election gets fully underway, the party was hit with what is reported to have been a distributed denial of service attack on Monday, using botnets to bombard a server with requests and overwhelm it.
Government-backed terrorism reinsurer Pool Re has announced the creation of a specialist unit to support member insurers and their policyholders by sharing its knowledge and partnerships in the field. Called Pool Re Solutions, the new unit is made up of three teams which will cover their own risk specialisms. The Risk Awareness team will provide analysis, intelligence and expertise on all aspects of the terrorism threat, using a broad range of data from sources such as the Global Terrorism Database.
Three quarters of Japanese companies have been affected by a string of natural disasters over the past two years, suffering damage to multiple parts of their operations including factories, office buildings, distribution networks and supply chains. According to a survey by Reuters, most of those companies suffered direct or indirect effects that lasted more than a week, while the impact lasted more than a month for a third of respondents.
Sydney is facing a catastrophic fire risk for the first time as NSW’s heightened bushfire emergency worsens this week. Firefighters are battling over 100 fires in NSW and Queensland, Australia, but have warned no area is safe as high winds could send dangerous embers to the central business district.
Lloyd’s has announced the decision to merge the Council and the Franchise Board effective from 1 June 2020, after receiving widespread support from across the market. Lloyd’s says that the announcement follows five months of consultation across the market, with an overwhelming majority (over 90%) supporting the proposal to merge the Board into the Council and create a single governing body for the Corporation and the Lloyd’s market.
Despite deep autumn discounting and early seasonal promotions, high street sales collapsed in the last week of October following further Brexit delays and the announcement of a December general election. According to the BDO High Street Sales Tracker, total like-for-like in-store sales only managed a marginal +0.7% increase in October and failed to offset a negative base of -2.0% in October 2018, as consumers become increasingly sensitive to the political chaos.
Marine engineering firm James Fisher & Sons is the latest business to report a cyber breach.
On the 5th November, the Cumbrian marine services firm said that hackers had gained unlawful access to its computer systems.
November 12th will mark the deadline for Sudanese president Salva Kiir’s government and opposition groups to form a transitional unity government, in a power-sharing arrangement. The risk of political unrest and instability in the region is very high, regardless of whether an agreement is met and a government is formed, a travel risk management firm with clients’ in the region has warned. We believe a crisis is looming, regardless of whether a unity government is formed or not.
The Environment Agency is working to reduce the impact of persistent rain this week, which has led to surface water and river flooding in parts of Yorkshire, Nottinghamshire, Greater Manchester, Derbyshire and Lincolnshire. River levels have risen considerably and more flooding of properties and roads is expected. Elsewhere Northern Rail has said it expected “severe disruption” to its network. Elsewhere, transport difficulties continue amid road closures.
The winners of the 10th annual Risk Management Awards were revealed last night at a gala dinner and ceremony attended by some 400 people at the Grosvenor in Mayfair, London. Both Aviva and Nationwide took away two gongs, while the newcomer trophy was picked up by Mott MacDonald's Alex Todorova.
With the US government considering further restrictions against Turkey, insurers and brokers operating in the region will have to unpick exactly what has been imposed and whether to maintain existing ties with the country as they head into the renewals season.
The National Insurance Awards are open for entries. Celebrating excellence in the sector, the National Insurance Awards highlight the very best in general insurance provision and management. Featuring 30 categories for companies and teams that demonstrate excellence in their field – from the delivery of specialist brokerage services to the best in HNW insurance provision.
The government is appealing for businesses to get in touch after studies revealed that less than 20% of boards fully understand the true impact of the cyber threat landscape.
The international standard for business continuity management systems has been updated. Replacing the 2012 version, ISO 22301:2019 ‘Security and resilience - Business continuity management systems - Requirements’ was developed by the ISO ISO/TC 292 Security and Resilience Technical Committee, and helps organisations protect against, prepare for, respond to, and recover when disruptive incidents arise.
DAC Beachcroft has deployed Verisk’s Verify claims management platform to provide its lawyers with direct, real-time access to more quickly and efficiently resolve litigated credit hire claims.
Last year was one of the safest ever for the global airline industry in terms of fatal accidents. But, despite the good news, insurer Allianz is warning that a number of risks lie ahead for the industry, including more costly business interruption incidents from grounding, cyber and drone events and greater turbulence from climate change.
Specialty insurer NMU has extended its standalone cyber product, CyberSafe. Chief amongst the improvements are the inclusion of customer payment fraud protection and cover for BI losses resulting from reputational harm.
Fidelis Insurance has taken an equity stake in new MGA Perigon Product Recall, whose main focus will be recall and contamination coverage for food and beverage producers, restaurant operations, auto manufacturers. This will be managed through Pine Walk Capital Limited, Fidelis’ subsidiary MGA platform.
As protests in Hong Kong move into their 22nd week, some firms have opted to hold off sending staff to this important economic region. The targeting by protesters of the transportation infrastructure adds another level of uncertainty for business travellers and their employers, with many metro stations having been closed on the island.
The UK threat level from terrorism was today reduced to ‘substantial’ for the first time since August 2014, indicating positive developments in reducing the threat from terrorism.
The government imposed on Saturday a moratorium on the process of hydraulic fracturing for shale gas, or fracking, in England. The decision was made following the publication of a report by the Oil and Gas Authority (OGA) which concluded that current technology was not able to accurately predict the probability or magnitude of earthquakes linked to fracking operations. The news comes after a series of incidents and disturbances near Cuadrilla’s Preston New Road site in Lancashire.
Tokio Marine Kiln has launched its flagship cyber product, Cyber Ctrl, in Asia. Offering a range of first party losses including business interruption, cover also provides clients with crisis management support in the wake of a breach. Traditional liability covers to protect against breaches of third-party data are also included as standard.
The British Insurance Brokers’ Association has launched an online Brexit information hub, designed to help insurance brokers understand the potential impact of developments.
A series of measures to improve Kent’s resilience in the event of disruption to services across the English Channel were put in place this morning as planned, in preparation for a UK exit from the EU on 31st October.
The Irish Data Protection Commission has published a guidance document for data breach notification requirements under the EU General Data Protection Regulation. The note is intended to give data controllers practical advice on how to handle data breaches and navigate the mandatory data breach notification regime.
With just 46 days to go until the Senior Management and Certification Regime comes into effect, a concerning number of brokers are thought to be unaware of the new rules. Responding to research conducted in August for insurer, Ecclesiastical, just four per cent of brokers said they knew everything they needed to do ahead of implementation, compared with a third who said they had no knowledge at all.
Everbridge has won a contract to provide the multi-agency notification process for major incidents and emergencies for the Thames Valley Local Resilience Forum. The Local Resilience Forum covers an area of the 2,200 square miles of Berkshire, Buckinghamshire, Oxfordshire and Milton Keynes. Part of the TVLRF’s responsibility is to share important information and manage a joint response with its partner agencies.
Violent protests in Chile have left 18 dead and led to around 5,000 arrests so far. The protests began on 14th October over an increase in metro fares and have since developed into a broader expression of discontent over the cost of living.
Break Free From Plastics has catalogued almost 8,000 brands in this year’s global audit, the analysis of which reveals the 2019 Top 10 Global Polluters as Coca Cola, Nestle, PepsiCo, Mondelez International, Unilever, Mars, P&G, Colgate-Palmolive, Phillip Morris and Perfetti Van Mille.
The International Underwriting Association has established a new London Market committee for underwriters providing professional indemnity to the construction industry. The Construction Working Group will meet on a monthly basis and liaise closely with the IUA’s existing Professional Indemnity Forum. Of particular focus will be issues surrounding the use of cladding and fire protection.
The UK National Cyber Security Centre dealt with over 600 cyber incidents in the past year, a significant number of which were said to emanate from hostile nation states, continuing the pattern observed since the formation of the centre in 2016. Around 900 organisations were targeted during this time, it said.
Just because Millennials and Generation Z workers were born in the digital age does not necessarily mean they follow cyber security best practice. This is the message from NTT, whose recent study shows that employees over the age of 30 are on the whole more likely to adopt best practice in cyber security.
The Met Police has stepped down its policing of the Extinction Rebellion Autumn Uprising assembly, as reports emerge of the enormous cost to the force of two weeks of demos in and around London.
Total economic and insured losses from Japan's Typhoon Hagibis are expected to reach well into the billions
Today sees the launch of Davies' new Bermuda-based compliance and regulatory consulting business. Specialising in providing insurance operations and consultancy solutions for insurance intermediaries and re/insurers with operations in Bermuda, the UK and globally, the operation will mirror its established operations in the UK and its team of experienced professionals in the Lloyd’s, London and international insurance markets.
AI could contribute £12.2trn to the global economy by 2030, and could increase UK productivity by 14.3%.
The Serious Fraud Office has closed its investigation into the manipulation of the LIBOR, a seven-year long review of evidence that resulted in charges of conspiracy to defraud brought against 13 individuals.
Today brings the second wave of cannabis legalisation in Canada, and, with it, significant opportunities for insurers as a potentially vast new market is opened up in cannabis edibles, extracts and topicals. Sales are projected to grow ten-fold to reach US$40bn a year in the US by 2025 and around US$5bn in Canada within five years.
Earlier this week, US firm, Pitney Bowes was hit with a ransomware attack that it said had encrypted information on its systems. While it is reported the company is working with a third party to address the issue, it still faces the challenge of whether to pay the ransom.
The CBI has welcomed, if tentatively, the news that the UK and the EU have reached a deal.
However, whilst a deal has been done, it still needs to be approved in parliament.
FM Global has just opened its US$16m electrical hazards and gas detection laboratory, part of the commercial insurer's Rhode Island Research Campus where it carries out testing for companies operating in hazardous environments.
The Financial Conduct Authority has today published a set of proposals that will form the basis of its work on improving regulated firms' climate change disclosures. These include issuers’ climate change disclosures, regulated firms’ integration of climate change risk and opportunities into their decision-making and consumers’ access to green financial products and services.
Schneider Electric and HDI Global are to collaborate on a digital transformation programme that will see the insurer harvesting data from the recently launched cross-industry open ecosystem platform, Schneider Electric Exchange, and its EcoStruxure IoT-enabled architecture, to generate, aggregate and transform building, machinery and equipment data.
Securing the UK's departure from the EU on 31st October is the government's priority and was top of agenda in the Queen's Speech today, delivered for the first time in over two years at the formal reopening of the new parliamentary session.
Heightened geopolitical tensions are creating an extremely challenging environment for insurers and brokers, as the US imposes sanctions on Turkish ministries and senior government officials in response to the country's military offensive in northern Syria.
Keeping London moving
Climate change protesters have this morning arrived in the City of London, with disruption expected throughout the day in the areas of Broadgate, Liverpool Street Station, Bank Station, London Bridge and through Poultry to St Paul’s.
Supplier vetting policies within UK corporates are poorly understood and inconsistently applied, according to a study into third-party risk management practices conducted by Dow Jones Risk & Compliance.
Against a backdrop of heightened tensions in the Middle East, the damage to Iranian oil tanker Sinopa may drive up insurance costs in the region, experts have warned. Events leading up to and surrounding the incident are shrouded in uncertainty, with various reports of missiles striking the tanker and an accusation that Saudi Arabia had committed an act of terrorism while the vessel was carrying oil to Syria.
Tullett Prebon has been handed a £15.4m fine for failing to conduct its business with due skill, care and diligence, failing to have adequate risk management systems and for failing to be open and cooperative with the city watchdog, it has said, in serious failings that "undermine the proper function of wholesale markets".
The Financial Conduct Authority has today outlined the steps certain firms must take in the event of a no-deal Brexit. It said it was conscious that leaving the EU during the working week "could pose operational challenges for firms". It therefore expects firms to take "reasonable steps" to comply with post-exit MiFID transaction reporting and EMIR trade reporting requirements.
The International Forum of Terrorism Risk Re/Insurance Pools and the Geneva Association are launching a joint task force on cyber terrorism and cyber warfare.
Former CEO of Lloyd's, Inga Beale has joined NTT Data’s new UK advisory board. As a specialist advisor, Dame Inga will work with the firm's head of insurance, Kim Gray, advising on the challenges facing firms in the London Market as they accelerate their transformation plans.
Climate protesters have appeared at London City Airport today, although the Met Police appear again to have the situation in hand. A man was arrested on a flight on the runway, as were a number of people outside the airport. The protesters are associated with the ongoing Extinction Rebellion protests in the capital this week.
Specialist insurance provider, CFC has acquired Texas-based cyber incident response provider, Solis Security. CFC has one of the largest cyber underwriting teams in the world, with one of the largest in-house cyber claims and incident response teams, and has handled nearly 1,500 cyber claims this year alone.
A combination of geopolitical tensions, climate volatility and technological dependencies are contributing to a complex web of global supply chain pressures, the costs of which will build if they are not tackled now. This is the stark warning of a joint report from Airmic, AIR Worldwide, Gallagher, HDI, Lloyd’s and Sedgwick.
The Insurance Fraud Investigators Group has rolled out Verisk's e-alerts platform for insurance fraud prevention.
*UPDATED* Protesters have begun their fortnight-long demonstrations around the capital, with Westminster and its government departments, roads and bridges key target areas. On the other side of town, a few hundred campaigners are said to have gathered in Trafalgar Square.
The government has put forward what it calls “serious and reasonable” proposals to the EU and is waiting for an EU compromise on these. In the event that the UK leaves without a deal, however, a Brexit readiness report, published today, sets out the details of completed work, as Michael Gove says it is “time for the UK to look forward to the future with certainty and confidence”.
To prevent going climate change demonstrations from causing serious disruption to the community, the Metropolitan Police has today imposed a condition upon protesters that they may only assemble in Trafalgar Square.
Data security outfit, Egress has today launched an online Insider Breach Calculator aimed at helping businesses better determine the probability of suffering an email-based insider data breach.
The insurance industry is facing a structural shift that necessitates collaboration with insurtechs if it is to meet rising customer expectations, according to the World InsurTech Report 2019, published today.
The report, a collaboration itself between by Capgemini and Efma, has identified four fundamental shifts taking place in the industry. First, a shift from product focus to customer experience. Some 70% of insurers and insurtechs said a focus on holistic risk solutions for customers was critical to establishing a future-state insurance marketplace.
Climate change activist group, Extinction Rebellion is planning a week of demonstrations in the capital, focused mainly in and around Westminster. Businesses in the area are urged to consider continuity plans and contingencies -- particularly in relation to loss of access and especially relating to the safety of certain members of staff, such as those who are disabled or pregnant.
The effects of man upon climate change are almost universally acknowledged, if not quite. Surprisingly some the countries in which one might automatically assume few deniers, the evidence points the other way.
Private equity firms may not be placing enough focus on the quality of insurance cover in place at portfolio companies, and are generally taking on more risks as their businesses change. This according to research commissioned by Mactavish, which also suggests that, with commercial insurance policies “becoming increasingly generic”, the chances of claims being paid are reduced.
As part of preparations for exiting the EU, Defra is issuing guidance for agri-food stakeholders to help them ready supply chains in advance of the 31st October. This follows an announcement earlier this week from the Department for Transport which launched a campaign to help hauliers and commercial drivers get ready for Brexit and ensure they have what they need from traders to get through border customs smoothly.
Europ Assistance has deployed machine-learning to automate customer claims analysis. Within Europ Assistance’s eClaims portal, the Travel intelligent Document System will provide instant feedback to customers, and ultimately reducing the time between claims filing and resolution.
An ambitious programme in autonomous vehicle technology and development is being showcased this week in London’s iconic Olympic Park. This major milestone in a 30-month government-supported project has seen a fleet of self-driving vehicles safely navigating the modern, urban environment – underscoring the UK’s commitment in the arena.
Sapiens has partnered with FRISS, an AI-powered fraud and risk management tool for P/C insurers. FRISS analyses policy applications, renewals, quotations and claims for high risks, fraud and compliance. An automated risk assessment helps carriers speed up the onboarding process and reduces friction during claims payments.
The situation appears to be worsening in Hong Kong as reports have emerged of a protester being shot in the chest by police during yet another violent clash, as soldiers paraded for the 70th anniversary of Communist rule in China. It is understood that this incident marks the first injury from a live round
Economic issues dominate concerns for businesses at the global level, whilst cyber risk is the number one worry for those doing business in Europe and North America. These are among the conclusions of a World Economic Forum survey of nearly 13,000 business leaders who were asked to name the top five global risks of doing business in their country over the next 10 years.
Engagement with C-level execs in business continuity planning is on the rise, but IT staff are still too heavily involved. This is according to the a study conducted by Databarracks, which asked over 400 IT decision-makers in the UK a series of questions surrounding critical issues relating to IT, security, disaster recovery and business continuity practices.
Dieselgate drags on for embattled Volkswagen as the first mass lawsuit of its kind gets underway in Germany. Some 450,000 are looking for compensation having been being sold cars based on misleading emissions data.
PwC has released the results of an in-depth study into the mechanisms and dynamics of corporate crises, offering unique insight into the way companies and individuals experience and emerge from crises, and in impressive detail. With more than 2,000 global respondents, details of some 4,500 crises are unpicked, in the first in a series of deeper insights into crisis from the consultancy's risk experts.
The dense law and insurance concepts are interspersed with digressions into the history of insurance that serve not only to give a historical colour to the text but also underpin the foundations of insurance. Snippets of information grant a more holistic view of insurance – the way in which value, risk and past legal cases create the interrelated covers and duties is one such example.
The UK is expected to experience a major decline in trade levels of renewable and sustainable technologies over the coming years, continuing a downward trend that saw levels drop 65% between 2012 and 2017. At this rate, projections are for a fall of a further 75% by 2023...
North P&I Club has today launched a new interactive 3D tool providing data and analysis on maritime threats and incidents. GlobeView is available via its website, alongside a new directory tool designed to connect users to correspondents in all regions and countries covered.
Aon has launched its new AI-powered ClaimsMonitor.X platform, a system that uses natural language processing to read claims notes to identify if adjusters are following best practices.
In the ‘ideas economy’ standardisation gives way to ingenuity. Ideas (and doubts) are the drivers of almost all modern endeavours and risk mitigation, but the patterns of the past and weak management can lead directly to cultures where fear prevents ideas and fears being shared.
To create psychological safety for individuals and collaborative teams, leaders must create new organisations that recognise these barriers.
AXA XL has teamed up with Accenture to bring global cyber security expertise to AXA XL underwriters, brokers and clients, initially on an industry-basis for the manufacturing, retail, healthcare and financial services industries, with plans to expand among others to cover the full P/C spectrum by early 2020.
For the second year running, cyber security has been identified as the number one business risk faced by organisations in Europe. These are the findings of Risk in Focus 2020, our fourth annual report analysing the business risks faced by organisations across Europe. Cyber security and digitalisation have both appeared in the top three risks over the last two years. This year the number of chief internal auditors citing cyber security as a top five risk has increased by 18%, further strengthening its position as the clear number one risk.
The Insolvency Service has been asked to fast-track its investigation into the circumstances surrounding the liquidation of Thomas Cook, following the tour operator's collapse early this morning. It is understood that the investigation will also consider the conduct of the directors. The 178-year old tour operator confirmed today that it had entered into compulsory liquidation after repeated attempts to save the group failed.
Eight firms have been approved to provide freight capacity for the transport of critical goods, such as medicines, after the UK leaves the EU. Transport secretary, Grant Shapps today announced the successful appointment to the freight procurement framework of Air Charter Services; Brittany Ferries; DFDS A/S; Irish Ferries ; P&O Ferries; Seatruck Ferries; Eurotunnel and Stena Line.
Betterview is partnering with Synpulse to provide customers with consulting and implementation services for Betterview’s API in the US.
A survey conducted within heavy industry has found that more than half are using a mix of spreadsheets and even paper to coordinate contractor records, raising concerns about effective risk management within larger operations. The survey, conducted in the US, Australia, Canada, France, Germany and the UK by Verdantix and commissioned by Avetta, suggests the problem may be exacerbated as 38% expect increasing engagement with contractors moving forward.
Firstly, I would like to congratulate all of those who have been shortlisted in the CIR 10th anniversary Risk Management Awards. The Institute is proud to be supporting this prestigious event and we look forward to celebrating with you all at the dinner and ceremony on the 6th November.
Dozens of large publicly-traded companies whose annual statements reported hurricane-related financial damage collectively lost 5% of their shareholder value over the year following the storms. This is according to study of the direct impact of hurricane damage on shareholder value – offering unique insight into property risk prevention.
Standards company, BSI has published its latest standard for risk management. BS EN IEC 31010:2019 Risk management – Risk assessment techniques shows how to select and apply risk assessment techniques in a wide range of contexts, comparing their possible applications, benefits and limitations.
Despite soaring cyber losses over the past year, there has been no marked improvement in corporate defences against this risk, according to a report commissioned by Hiscox. Its study points to a sharp increase in the number and cost of cyber attacks. Some 61% of firms report having endured at least one attack in the past year, up from 45% in the previous year. The frequency of attacks also increased, with Belgian firms appearing to bear the brunt.
Betterview has signed a commercial agreement with Frederick Mutual Insurance, whereby the latter will roll out the AI firm’s property analytics throughout the policy lifecycle -- from loss control and underwriting to claims and catastrophe response.
Research published this month suggests that it is more important than ever to assess resilience in a world economy that is less resilient now than it was at the onset of the global financial crisis in 2007. Switzerland, Canada and the US enjoy the greatest economic resilience (as they have consistently for the past decade) according to the study, penned by the London School of Economics and the Swiss Re Institute; whereas resilience in the euro area has seen the most dramatic decreases since 2007.
Boardrooms are increasingly aware that changes in global politics, societal opinion and technological innovation can have a far greater impact on their business models than ever before – and at a much faster pace. Businesses have always been vulnerable to emerging risks, but in today’s volatile and uncertain environment, disruption to established businesses is becoming more widespread.
We often hear about the benefits of big data and artificial intelligence, and how they can find patterns within huge bodies of information that would overwhelm even the most brilliant human brain. However, just as every building needs to rest on strong foundations, the activity around gathering and using a huge pool of data rests on a vast and complex network of relationships of trust: if the trust isn’t there, the activity breaks down.
JBA Risk Management has today launched what is thought to be the first ever probabilistic global flood model. The Global Flood Model allows re/insurers to model river and surface water flood at 30m resolution worldwide, enabling consistent comparison of loss across country and continental borders.
Everbridge's deployment of Iceland’s national alerting system has gone live. The provider now supports four countries: Greece, Iceland, the Netherlands and Sweden as part of the EU's drive to have population-wide alerting systems in place by 2022.
Within Iceland, the Everbridge Public Warning solution is being used to provide population-wide alerting to reach Iceland’s 360,000 residents and some two million annual visito
The global risk services consulting market grew by 7.7% to £52.9bn in 2018, buoyed by rising demand across the spectrum of risks -- particularly cyber security, which now accounts for a quarter of the market. So says a report from Source Global Research, which suggests cyber security risk services are effectively "cannibalising" the more traditional areas of risk service provision.
Countries must invest to protect against the effects of climate change or pay an even heavier price later, according to the flagship report from the Global Commission on Adaptation, published this week. A boost in investment, it said, would create benefits that far outweigh the costs -- by nearly four to one.
US-based association the Risk Management Society has released its latest talent report outlining important factors for effective risk management. Only 32% of businesses are confident their risk management teams are prepared to tackle future challenges, according to the RIMS Risk Management Talent 2025 Report, with 94% declaring that new skills will be needed the next five years.
A 48-hour strike by thousands of British Airways pilots on Monday and Tuesday caused nearly 100% cancellations of its flights. The action marks first-ever strike by pilots, who want a bigger share of airline's earnings. "Unfortunately, with no detail from BALPA on which pilots would strike, we had no way of predicting how many would come to work or which aircraft they are qualified to fly, so we had no option but to cancel nearly 100 per cent our flights," BA said.
Ironshore Environmental policyholders will now have access to IronResponse, the company's new smartphone app, which offers them immediate contact with claims professionals when reporting environmental issues. The phone app allows for an instant connection with the call centre to identify the account, reaching an Ironshore claims manager in less than five minutes.
Hauliers need to be fully prepared for unfamiliar customs and border paperwork when the UK leaves the EU on the 31st October 2019, and the Department for Transport has launched a multi-million pound public information campaign to ensure businesses and the logistics industry are equipped for Brexit. Since the vote to leave the EU in June 2016, numerous questions have remained unresolved in the logistics industry.
The Association of British Insurers has published its annual detected fraud figures uncovering 1,300 insurance frauds every day, with the average valued at £12,000. The total number of fraudulent claims and applications identified in 2018 reached 469,000, up 3% on the year before.
Driverless car tech is gaining speed and the UK autonomous vehicle market is estimated to reach £62bn by 2030, and insurers need to be prepared for this transport revolution. Over the summer the UK government stated that driverless cars will be allowed on public roads from the beginning of 2020. The US, Japan and Germany are among the countries who have already trialled driverless cars, raising the issue of driverless vehicle liability and business insurance.
A recent study reveals that nearly two in five companies have lost business due to lack of cybersecurity expertise. The September 2019 study conducted by Forrester Consulting shows that cybersecurity performance is vital to achieve commercial success and a higher focus on security can make all the difference to business.
The effect of Hurricane Dorian is expected to lead to insurance payouts of up to US$3bn in the Bahamas, according to catastrophe risk modelling firm AIR Worldwide.
The figure highlights the devastation that the storm, which has left at least 43 dead and as many as 70,000 homeless, has had on the Caribbean.
The EU Whistleblower Protection Directive is expected to receive its final approval by EU ministers on Monday next week, and if so, will need to be transposed by member states within two years of its adoption, setting the deadline at September 2021.
Fusion Risk Management has secured investment from Vista Equity Partners, supplying additional funding for the business continuity and risk management solutions provider to further scale its platform and accelerate product development. The investment in Fusion is made by Vista’s Endeavor investment fund, which is focused on mission-critical, high-growth enterprise software, data and technology-enabled businesses.
New Dawn Risk has today launched a new UK cyber insurance product. Delivered through an online platform to small and medium-sized enterprises, or face-to-face to larger businesses with more complex needs, the new product boasts “low premiums and free cancellation”.
The High Court today ruled in favour of the South Wales Police to allow the continued use of Automated Facial Recognition (AFR) – the controversial technology which enables mass crowd surveillance, in response to a judicial review held in May by local man, Ed Bridges.
The Institute of Risk Management’s Carol Ouko-Misiko has been appointed to the advisory board of the World Economic Forum’s Global Risks Report. Ouko-Misiko is a senior member of the Institute and plays a key role in managing the IRM’s East Africa Regional Group; she is group chief risk officer for Britam Holdings, where she oversees risk management across seven countries (Kenya, Uganda, Tanzania, Rwanda, South Sudan, Malawi and Mozambique).
Capsicum Re and Swiss Re have today launched their new cyber reinsurance solution, Decrypt. The new product provides a single, flexible, end-to-end solution to insurers’ cyber exposure challenges, including embedded, silent and affirmative cyber risks.
Decrypt, which will be brought to the market at this month’s Monte Carlo Rendez-Vous, takes a modular approach comprised of risk identification, quantification and transfer and offers a lead line provided by Swiss Re of up to US$50m per client.
The LMG has today launched a global event monitoring and alert app that analyses over 100,000 online sources to provide information on major disruptive events across the world 24/7. Chief executive of the IUA, Dave Matcham, said the aim is to curate knowledge and intelligence from within and outside the market to create collective solutions to common problems.
Firefighters were called to an incident last night at manufacturer Whirlpool’s Peterborough site, where 52 trailer units contained washing machines and fridge parts had caught fire near the appliance manufacturer’s headquarters.
Florida is under a state of emergency as every county in the state prepares for potentially the east coast's strongest hurricane in nearly three decades. Dorian impacted the Caribbean earlier this week, mainly damaging roofs, causing power outages, downing trees and bringing minor flooding. At Friday afternoon UK time, the storm is located 260 miles east-northeast of the southeastern Bahamas and is tracking towards the northwest at a forward speed of 12 mph.
Research into the cost and implications of IT downtime points to a positive shift in understanding among businesses. The research, conducted by Databarracks, suggests that organisations are getting better at understanding what IT downtime costs their business, as just 19% of respondents to the firm’s Data Health Check survey said they were unaware of the costs, down from 35% in 2017.
An FOI request submitted to the Information Commissioner’s Office has revealed that of the 4856 personal data breaches reported in the first half of 2019, 60% were caused by human error. Of those incidents, 43% were the result of incorrect disclosure (with 20% posting or faxing data to the incorrect recipient). Of all data breaches, 18% were reported by companies operating in the healthcare sector.
The government has today launched a £30m UK-wide competition to stimulate innovation in 5G technology within rural communities. Up to ten locations will be chosen to run trials of 5G applications and stimulate commercial investment in 5G technology, which offers mobile speeds 10 to 20 times faster than previous generations.
US-based risk management association, RIMS, has urged its members to engage their local congressperson to support the newly introduced ADA Compliance for Customer Entry to Stores and Services (or ACCESS) Act, which aims to reduce frivolous lawsuits and address compliance issues with the Americans with Disabilities Act, while ensuring the rights of disabled people are protected.
Cyber technology provider, Acronis has launched a consultative offering for the smaller organisations looking to improve their risk assessment, security awareness and incident response. The new Cyber Services division aims to harden customers’ cyber protection posture with a combination of security risk assessments, vulnerability assessments, penetration testing, incident response services and bespoke awareness training.
Claims management companies must do more to ensure their promotions do not mislead potential customers the Financial Conduct Authority has said. This warning comes after the FCA has reviewed over 200 CMCs since it took over their regulation in April 2019.
UK motor claims payout inflation surged by 8.6% in 2018, taking the average cost per claim to £4,791. Analysts in Willis Towers Watson’s Claim Metrics benchmarking unit say the sharpest rise took place in Wales and the North East at 22.4% between 2016 and 2018. The region with the highest average cost per claim (at £5,403) in 2018 was for the second year running North West England.
EMC Insurance has partnered with San Francisco-based Betterview through both a Series A funding investment and a commercial agreement to use the insurtech’s predictive analytics and risk management platform.
Hardware authentication security key provider, Yubico has released a security key designed with both USB-C and Apple Lightning connectors on a single device. The YubiKey 5Ci provides authentication across iOS, Android, MacOS and Windows devices and can be used to secure the 1Password, Bitwarden, Dashlane, Idaptive, LastPass and Okta iOS mobile applications along with additional services accessed through the Brave iOS browser app.
Commercial insurers can catch up with personal lines providers by exploiting the rapid explosion in the number and breadth of structured and unstructured data sources and use analytics to an improvement in loss ratios of up to 5%. This is the view of analysts at the Swiss Re Institute, whose latest report "Advanced analytics: unlocking new frontiers in P&C insurance", suggests that technology advances will enable P/C insurers to explore new frontiers in risk assessment and mitigation.
The government has today said that an extra £9m will be made available to help ready major ports and surrounding areas for Brexit. Local government secretary, Robert Jenrick said £5m will be given to local councils which either have or are near to a major air, land or sea port and £4m will be provided to local resilience forums.
A Court of Appeal judgement over holiday pay has been brought using a group legal expenses insurance policy. The original employment tribunal claim was first raised by music teacher Lesley Brazel in 2015, for unlawful deduction from her wages, and was supported by the Incorporated Society of Musicians (ISM).
Analysis of over 13,000 engineering insurance claims over the last five years highlights seven major trends in engineering and construction projects, driving some of the largest losses ever. This is according to a new report from Allianz Global Corporate & Specialty, which shows that fire and explosions are behind the costliest losses. Meanwhile, defective product and business interruption claims are rising, as are concerns around trade disputes.
Warranty and indemnity claims have increased significantly across EMEA since 2016, according to data from Marsh JLT Specialty. Claims notifications shot up 293% from 2016 to 2018 – correlating with increasing demand for W&I insurance by buyers and sellers to protect deals.
NTT Security has signed an MoU with Europol’s European Cybercrime Centre (EC3) whereby the two parties exchange strategic threat intelligence as well as information relating to cyber security trends and industry best practice.
The government has signed into law legislation to repeal the Act of Parliament which concreted Britain’s EU membership in 1972. The repeal of the Act confirms the pending return of lawmaking powers from Brussels to the UK, and will take effect when Britain formally leaves the bloc on 31st October 2019.
The majority of financial companies have experienced a cyber security incident in the past year, highlighting the serious threat that both data breaches and malicious attacks pose to the UK financial sector. Research by data security company Clearswift found that 70% of financial companies have experienced an incident in the past 12 months.
Most third-party risks are discovered after the initial due diligence period according to a survey by Gartner. The survey of more than 250 legal and compliance leaders found that the standard point-in-time approach to risk management is no longer effective in today’s landscape of fast-paced, rapidly changing business relationships. Among organisations that engage third parties to provide business services, 83% identified third-party risks after conducting due diligence and before recertification.
There are more telematics-based car insurance products on the market than ever before as insurers look to target more drivers with technology-based products. Research from financial information firm Defaqto found that the number of telematics products available on the market has more than doubled in the last three years. Today there are 55 telematics products available compared to just 25 in 2016, with insurers looking to utilise the technology to more customers and not just younger drivers who were initially the focus for such driving monitoring devices because they are considered a high risk.
More than one in four (26%) small businesses in the UK would have to immediately close if a key person died or became critically ill, according to research on the business protection market by Legal & General. The report found that 15% of businesses which had already suffered such an event had shut their doors. The research suggests that up to 1.5m SMEs could be at risk of immediate closure should the worst happen, while a further 26% of companies in the survey said they would cease trading within a year.
First published in 2014, the annual National Risk Assessment report identifies the strategic risks facing Ireland, including geopolitical, economic, social, environmental and technological risks. Helping to classify problem areas, the most recent report covers the significant risks facing Ireland in 2019, and aims to develop techniques and strategies to tackle the main issues as soon as possible.
The heatwave has well and truly vanished as temperatures drop and rain settles, with approximately 2.4m people living in immediate flood risk areas in England. The country spends around £4.4bn on flood defence, with regions such as the East Midlands, the South East and Central London receiving the most money towards flood protection.
The Government has announced an inquiry into the causes of the large-scale electricity failure that affected large parts of the UK on Friday last week. Almost 1m people were affected by the outage across a large geographical area, which occurred after almost simultaneous problems at two power stations.
The take-up rate of cyber insurance by businesses in the UK remains worryingly low according to the Association of British Insurers (ABI), with the overall market size estimated to be less than a tenth of the size of the UK’s pet insurance market. Just 11% of businesses are thought to have a specific cyber insurance policy in place, meaning millions of small businesses could be at risk.
Hurricane Barry established a new state record in July for the highest hurricane-induced rainfall of 16.59 inches in Arkansas in the US. Five states have set new hurricane-induced rainfall records since 2017 alone: Texas, Hawaii, North Carolina, South Carolina, and Arkansas. The Cat 1 storm came ashore near Intracoastal City, Louisiana, later leading to widespread flood and thunderstorm damage. According to figures from Aon’s latest catastrophe report, total economic losses, largely flood-driven, were expected to exceed the equivalent of £500m. Public and private insurers paid out the equivalent of nearly £350m.
The UK has become one of the first countries in Europe to enable Google flood alerts meaning Environment Agency-issued warnings will now appear on Google Search and the Google Public Alerts map within seconds. The service is a culmination of two years’ collaboration between The Environment Agency and Google, and follows similar roll-outs in the US, Germany, South America and parts of Asia, where the system issues alerts relating to residents to such environmental emergencies as earthquakes, wildfires and extreme temperatures.
Ecclesiastical has voiced its support for the London Fire Brigade's call for sprinklers to be fitted in every school across the UK. The insurer says this will help address the increasingly prevalent issue of arson and malicious damage in schools.
Global commercial insurance pricing increased 6% in the second quarter of this year in the seventh consecutive quarter of pricing increases. This is according to Marsh’s ‘Global Insurance Market Index’, released this week. This increase also represents the largest increase since the index was launched in 2012.
Everbridge has completed its acquisition of threat intelligence solutions provider NC4, creating an end-to-end critical event management and threat assessment platform for business continuity.
Kleos Space and Spire Global are to collaborate on a maritime safety solution, combining their respective radio frequency data and analytics capabilities, in what is believed to be a first-of-a-kind integration.
Business secretary Andrea Leadsom has held her first Brexit roundtable to discuss Brexit readiness among businesses. Representatives from businesses including Tate and Lyle Sugars, JML Group, Laing O’Rourke and Scottish Power all confirmed their readiness and confidence post-Brexit, and while there were some concerns about readiness for a no-deal Brexit, none of the issues were considered insurmountable.
Only a third of businesses have complete confidence in their disaster recovery capabilities, according to insight from Databarracks. Just 35% of respondents to the company’s annual Data Health Check survey have full confidence in their plans, while just 49% have complete confidence in their current back-up solution.
The global biometrics market is currently valued at £3.7bn, and could grow to £9.1bn by 2023, according to research conducted by Frost & Sullivan. It predicts that changing consumer demands and the emergence of the Internet of Things will be the key drivers behind an annual growth rate of 19.3%.
Up to ten freeports are to be created after the UK leaves the EU on 31st October, status for which ports and airports across the country will soon be able to bid. International Trade Secretary Liz Truss MP said Friday these manufacturing and services trade hubs could be free of unnecessary checks and paperwork, and will offer customs and tax benefits.
Insurers have been providing less and less cover energy providers committed to coal, in a move that means insurers will lose out in the short-term, but with considerable long-term benefits. AXA is extending its climate change policy to its recently acquired XL division. As a result, XL will no longer insure any construction projects related to coal-fired power plants and the extraction of tar sands -- a move that is expected to drive around £92m loss in revenue, mainly in 2020. Meanwhile Chubb recently announced a ban on coal-related underwriting and investment. The company will no longer provide insurance or investments to companies that operate coal-fired plants, or to firms for which coal mining generates more than 30% of revenue. According to Moody’s, there has been no meaningful loss of business for the handful of providers that have taken such action.
Willis Towers Watson has launched an initiative to address drone risk at airports. A new guide, ‘Drone disruption at airports: A risk mitigation and insurance response’ outlines the threat to airports by drones which are increasingly being used with malicious intent to cause disruption -- with an increase from 35 reported incidents between 2013-2015 to nearly 290 from 2016-2018 in the UK alone.
Global insurance industry M&A rose in the first half of 2019 with 222 deals completed worldwide, up from 196 in the second half of 2018, according to today’s mid-year report from Clyde & Co. This marks the biggest increase in the volume of transactions since H1 2015 and the fourth consecutive six-month period of growth.
A US consumer protection group has urged people affected by Equifax’s 2017 data breach to consider signing up for the free credit monitoring offered as part of the settlement because of an overwhelming interest in the cash alternative.
Chancellor Sajid Javid has doubled this year’s Brexit funding with today's announcement of an extra £2.1bn for no-deal preparations. This consists of an immediate cash boost of £1.1bn to prepare “critical areas” ahead of the UK’s October exit from the European Union, plus a further £1bn available to enhance operational preparedness this year “if needed”.
Business confidence continues to suffer in Hong Kong as the current unrest shows no sign of abating. Companies are beginning to realise the challenge of managing continued uncertainties as the former British colony’s government struggles with its biggest political crisis since the return to Chinese rule in 1997.
Protesters have closed part of Moorgate, demonstrating outside the offices of Drax Power. Drax appear to have been targeted because of its intention to build a new gas-fired power station in Yorkshire. Moorgate has been closed to traffic in both directions between the junction of Lothbury and London Wall due to the protests.
A major cyber attack at US financial services company, Capital One, in which the personal information of more than 100m people was stolen, highlights the vulnerability of perimeter-based and cloud security, according to cyber commissioner for former president Barack Obama. The hacker is thought to have stolen data including names, addresses and phone numbers of credit card applicants in the US and Canada.
In her first full week in the role, the UK’s new home secretary, Priti Patel is coordinating a strategic summit with her counterparts from the so-called ‘Five Eyes’ countries – Australia, Canada, New Zealand, the US and the UK – to agree joint action in countering current and emerging security threats.
Royal Navy vessel HMS Duncan has arrived in the Gulf, where the Type 45 destroyer will support the safe passage of British-flagged ships through the Strait of Hormuz, along with HMS Montrose. As the government continues to work to de-escalate the situation with Iran following the seizure of the Stena Impero, the new secretary of state for transport, Grant Shapps said the security of British-flagged ships is the priority. HMS Montrose has so far accompanied 35 merchant vessels during 20 separate transits.
More than 12 countries in Europe, including Belgium, Germany, the Netherlands and the UK, have confirmed record-breaking temperatures, following the warmest June since records began in 1880, according to meteorologists. All four countries remain on extreme heat alert, but buildings haven’t been designed to deal with high temperatures, and most businesses struggle to keep their offices cool when things go above the mid-20s.
Businesses can apply for a share of £30 million to support projects that use digital technology to improve the productivity and agility of UK manufacturing. Industrial digital technologies driven by artificial intelligence, robotics and the Internet of Things have the potential to significantly increase the productivity of UK manufacturing. The Made Smarter Review 2017 commissioned by the UK government estimated that industrial digitalisation could increase productivity by more than 25%.
PwC has announced the latest eight firms to have completed its 2019 Scale InsurTech programme, which focused on the UK insurance market. The insurance market offers some of the largest opportunities, with the potential for some £50bn of revenue to be created. Insurtech firms are looking to capitalise on this by providing innovative ‘plug and play’ solutions to incumbents, therefore creating more tech enabled and responsive solutions.
Following the extension of Article 50, the Financial Conduct Authority is to extend the proposed duration of the directions issued under the temporary transitional power to the end of December 2020. The temporary transitional power is intended to minimise disruption for firms and other regulated entities if the UK leaves the EU without a withdrawal agreement. Under the power firms do not generally need to prepare now to meet the changes to their UK regulatory obligations that are connected to Brexit.
SAP Ariba is to partner with Tokyo Shoko Research (TSR), a Japan-based commercial database, to integrate data on approximately 8.4m Japanese companies covering over 200 evaluation criteria into the SAP Ariba Supplier Risk solution.
The Met Office has warned that parts of Britain could become warmer than the Algarve as a heatwave sweeps across the UK, and Public Health England has responded by issuing an amber heat-health warning – just one level below the ‘national emergency’ red warning.
From a pleasant 25°C in Glasgow and Edinburgh to a scorching 35°C in London, the current heatwave could smash the high record of 36.7°C currently held for the hottest day in July. The highest ever UK temperature - 38.5°C - set in Faversham in August 2003, is also currently ‘under threat’.
Boris Johnson has numerous challenges to address as he takes office today, and EU negotiations are at the forefront. With a limited working parliamentary majority, the PM has already started on unequal footing, but he has pledged to deliver Brexit by 31st October, even if this means leaving without a deal.
The IRM has announced a partnership with East Africa-based Serianu Ltd to develop a localised cyber risk management framework, which aims to increase the number of competent risk professionals as well as enhance excellence in cyber risk management and reporting in the region, which currently faces a huge deficit of qualified risk managers.
Heightened tensions in the Middle East and particularly in the politically sensitive area in the Strait of Hormuz recently saw a British flagged tanker boarded by Iranian forces and diverted into Iranian waters. It is in direct response to this growing threat that Malicious Vessel Seizure has been developed by Hiscox to protect shipping in the event of being seized by a foreign government. Malicious Vessel Seizure will respond to a single peril of a ship taken by a foreign government, providing Loss of Hire costs and the services of Control Risks.
The election today of Boris Johnson as leader of the Conservative party and therefore Prime Minister represents both a pivotal time for politics and business, says business group the CBI, as it sets out the views of its members in a manifesto for the UK’s new PM. Designed to provide the new government with the group’s view of how best to get the UK economy back on track, the document is informed by conversations the CBI and intends to help “foster a more collaborative partnership between government and business”. Johnson has an opportunity to “inject a new lease of life into the economy” and to show the world the UK is open for investment.
The threats from extreme right and left-wing terrorism will from this week be reflected in the government’s official terrorism threat level. The changes, which follow a Joint Terrorism Analysis Centre review into the country’s approach to counter-terrorism following the 2017 attacks, mean the system reflects the threat posed by all forms of terrorism, irrespective of ideology.
The Institute of Risk Management and the Hubei University of Economics in Wuhan, China, have released a research report looking at how the university sector is responding to the growing demand from Chinese organisations for people with high quality risk management skills. It is believed that this is the first study of its kind to be conducted on the subject.
At Airmic’s annual conference in Harrogate in June, the risk and insurance professions came together to debate how we should respond – collectively and as individuals – to the challenges of the ‘new world’. We are in the early stages of a revolution driven by technology that will profoundly affect most aspects of our lives, our economy and our businesses. This revolution is different to previous ones because of the speed of change and the magnitude of the rewards and consequences. On the one hand, these changes give rise to unprecedented opportunities – on the other, to threats and vulnerabilities that we could not have imagined five years ago.
We often hear that political stability is essential for business continuity, yet we find ourselves in a position where we are having an election for a new prime minister while MPs in the candidates’ own party are openly questioning the immediate viability of their most fundamental commitments. It seems that political stability will not exist for a long time to come.
The principle of 100% compensation for personal injury claims is something that BIBA, along with others in the insurance sector, have been campaigning for since the Ogden rate – the multiplier used by insurers to calculate payments was reduced to -0.75% in 2017.
Ecclesiastical is encouraging brokers to speak to their clients about how best to protect themselves and the people who work, visit or volunteer at their heritage property by releasing a series of risk prevention guides. Slips and trips are the single most common cause of injury in the UK workplace and account for over a third of liability claims. Historic properties can present unique challenges in comparison to modern buildings when preventing slips and trips due to design constraints and the aesthetic of the building. For example, modern solutions like modern handrails, concrete repairs and infills to worn stone steps are often impractical and out of character with the rest of the building.
The Lord Chancellor, David Gauke, this month announced the outcome of the first discount rate review under the new methodology provided for in the Civil Liability Act 2018 – an outcome met with huge disappointment around the insurance industry. From 5 August 2019, the rate applicable to personal injury lump sum compensation payments will be minus 0.25%. Whilst not a complete surprise, the rate is considered to be at the low end of expectations, may still result in overcompensation to claimants, and, at the same time, may damage insurers’ balance sheets.
Analysis of claims data points to a changing risk profile in offshore wind, with foundations, cables and nat cats key areas of concern. Underwriter Gcube has warned today that, as the offshore wind sector expands globally, prices fall, and technology evolves, asset owners and investors are becoming increasingly exposed to technical and supply chain risks, alongside natural catastrophe and extreme weather risks. To address this, more sustainable approaches to risk management and insurance will ensure project delivery and successful long-term operations are not impacted.
The number of whistleblower reports to the ICO over data breaches has risen 175% in the year since the introduction of GDPR, from 138 in 2017/18 to 379 in 2018/19, according to figures obtained by law firm RPC. It says that the introduction of GDPR in May 2018 has made people significantly more vigilant and aware about the handling of personal data, and more likely to report potential data breaches. The firm adds that the sudden increase in whistleblower reports will be worrying for businesses, especially given the £283m in data breach fines recently issued by the ICO to British Airways and hotel group Marriott International.
There is a failure of transparency from major corporations regarding their impact on global deforestation, according to a new report released today by environmental non-profit CDP. Over 1,500 companies deemed to have a significant impact on deforestation or to be susceptible to deforestation risk were requested to disclose forests data through CDP’s reporting platform in 2018, but 70% failed to do so.
The cost of cyber security breaches to UK mid-market business has reached at least £30bn and yet many boards have yet to take steps to directly address the issue according to a new report. Research by Grant Thornton found that more than half (53%) of the companies interviewed reported losses equivalent to 3-10% of revenue following a cyber-breach. For those businesses hit most severely, losses can reach up to 25%.
FM Global has invested US$1 million in insurtech start-up RiskGenius, which applies artificial intelligence and machine learning to automate underwriting processes. It is the largest investment FM Global has made in a start-up to date.
Research by KPMG has found that over two-thirds (67%) of Brits say they care more about the environmental impact of the consumer goods they buy today compared to five years ago, but they mainly feel it is the responsibility of manufacturers and producers to tackle the issue. In the poll of over 2,000 consumers, when asked who they feel should be most responsible for ensuring the goods they buy are environmentally-friendly, over half (53%) of respondents said the companies producing or manufacturing products
Sword GRC has partnered with Brazil-based consultancy firm, Procurement Garage PG, which specialises in e-procurement and sourcing technologies covering supply chain, logistics, technology implementation and industry processes. Sword GRC’s Active Risk Manager (ARM) provides a platform to enable organisations to take a risk-based approach across the entire operation.
Use of transactional risk insurance significantly increased in 2018, with policy limits in excess of US$1 billion now available for single transactions, as private equity firms and strategic investors increasingly use insurance to reduce the risks associated with mergers and acquisitions.
The public has 'woken up' to the potential of its personal data, according to Information Commissioner Elizabeth Denham as she hails an ‘unprecedented’ year for the authority on the publication of its annual findings. “The ICO has covered an enormous amount of ground over the last year -- from the introduction of a new data protection law, to our calls to change the freedom of information law, from record-setting fines to a record number of people raising data protection concerns," Denham said.
Avalution Consulting has acquired business continuity research and staffing firm, BC Management with which the business continuity and IT disaster recovery consulting firm has worked for a number years. The combined firm's offering now includes business continuity consulting (both project-based and outsourced), the Catalyst Business Continuity Software solution, permanent placement staffing and data analytics, research and custom benchmarking.
Marriott International may be looking at a fine of over £99m for infringements of the General Data Protection Regulation. In a week of substantial news from the Information Commissioner's Office, these figures put an end to any doubt around how seriously the watchdog is taking the issue of data privacy.
Equipment breakdown now rivals fire loss in both frequency and severity of claims, according to an analysis of large risk losses reported in 2018 to FM Global. Of the company’s 232 large risk losses last year, 65 were the result of equipment breakdown resulting in 28% of FM Global losses across all industries in 2018.
Willis Re has launched a new solution for assessing US wildfire risk, and specifically how it correlates to a company’s portfolio level exposure. The new solution will be delivered at the point of quote through a partnership with geospatial analytics hub, SpatialKey, and builds on work initiated with the reinsurer’s wildfire risk score in 2016.
Pool Re has announced the placement of its new retrocession programme covering NDBI losses. Placed by Guy Carp with Liberty Specialty Markets as the lead and Munich Re and AXA XL also participating, the cover protects Pool Re with a limit of £40m and sits excess of both a £15m placement attachment and, separately, the member retentions.
The Information Commissioner’s Office this morning announced its intention to fine British Airways £183.39m for infringements of the General Data Protection Regulation (GDPR) following a cyber incident notified by the airline in September 2018. The unprecedented penalty sets the tone for future breaches.
Insurance governance consultant, Mactavish has hired Liam Fitzpatrick as client services director, where he will oversee the delivery of the firm’s technical output and be responsible for all aspects of client service. A former management liability broker within the private equity and M&A division of Marsh UK, Fitzpatrick previously spent 12 years as a corporate lawyer at Osborne Clarke.
Drone services company, DroneBase, has acquired Betterview’s drone roof inspection software and services, establishing the company’s first foray into analytics. The new software aims to help insurers and property managers assess damage and mitigate risk for commercial properties, and is currently in use by Berkshire Hathaway Homestate Companies. DroneBase Insights gives customers access to years worth of aerial data.
Lloyd’s has confirmed the targets for electronic placement for the remainder of 2019. Designed to accelerate digital transformation, the mandate was first issued in the first quarter of 2018 following discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Brokers’ Association (LIIBA) and the International Underwriting Association (IUA).
Global insurance premiums topped £4trn for first time ever in 2018 – a figure equivalent to more than 6% of global GDP and buoyed mainly by growth in non-life. And, according to analysts at Swiss Re, both life and non-life premiums look set to grow around 3% in real terms over 2019/20, based on strength in emerging markets across both sectors and solid growth in non-life in advanced markets.
Business standards company, BSI has just released a publicly available specification, PAS 11007:2019 Stakeholder engagement – specification, to help ensure interested parties are engaged throughout the lifecycle of the infrastructure project. This PAS addresses a recognised need to encourage better engagement and greater consistency in communications with infrastructure project stakeholders to enhance the overall effectiveness of their involvement, and the project.
Lloyd’s has launched a new software tool designed to improve the quality of insurance contract review. The tool aims to create more right-first time contracts, leading to fewer disputes, faster claims resolution and lower policy costs. It benefits insurers in the Lloyd’s market by reducing administration and claims costs, thereby improving profitability.
IEC and ISO have developed a toolbox of risk management standards to help businesses prepare, respond and recover more efficiently. The toolbox also features a newly updated standard on risk assessment techniques. IEC 31010, Risk management -- Risk assessment techniques, features a range of techniques to identify and understand risk, and complements the management ISO 31000.
The Chartered Insurance Institute has simplified the application and renewal process for corporate Chartered status. From this week, the new application form will automatically calculate whether a business meets the criteria for staff. For Chartered insurers and insurance brokers, it will automatically show if all of the board are members, and calculate if 90 per cent of customer-facing staff are members, marking a significant improvement on the previous manual process.
Markel International has launched its Markel Cyber 360 policy, on both a standalone and add-on basis. With limits of up to £10m/€15m/$20m per risk, Markel Cyber 360 is offered across most businesses, industries and geographies. The new policy offers insureds assessments of their vulnerabilities to cyber related incidents and recommendations on how to best address them. It also provides resources and expertise in breach response, incident management, legal, forensic investigation, credit monitoring and call centre management, loss control and public relations to deal effectively with a cyber incident, all supported by a 24/7 helpline which is open 365 days a year.
Lloyd’s of London has announced today that Jennifer Rigby is to be appointed chief operations officer. Rigby has been performing the role on an interim basis since March this year, following the departure of former COO Shirine Khoury-Haq. Her remit as Lloyd’s COO includes business transformation, global operations, data, IT, innovation and corporate real estate.
Analysis from S&P Global Ratings suggests that, while a no-deal Brexit may have short- and long-term implications for the country’s economy and financial markets, insurers’ capital adequacy is so strong as to be “sufficient to weather the immediate, short-term economic disruption or weakening of balance sheets" that a no-deal Brexit could trigger.
Human error is behind a vast majority of cyber claims, with around 75% considered easily preventable. This is according to research from specialists at CFC, whose own data suggests that, of claims notified in 2018, the vast majority involved theft of funds, ransomware, extortion and non-malicious data breaches, all of which usually start with a human error or oversight such as clicking on a phishing link or not following up a wire transfer request with a phone call.
The process of radicalisation and thus the very terrorist threat to the UK itself is changing, with the role of women, the changing profile of extreme right-wing groups and social media each contributing to the evolving dynamic. These are among the findings of Pool Re's latest Terrorism Threat Report, the reinsurer's regular review of the contemporary threat.
The UK's £4.7bn MGA market looks set to become an ever more popular feature of the London Market, despite increasing competitive and regulatory pressures. These are the conclusions drawn from a survey of more than 100 insurers and MGAs by global law firm, Clyde & Co. It says some 80% of carriers expect to increase MGA capacity in 2019, though the market is divided on whether this will come from new or existing MGAs (53% of insurers and 51% of MGAs saying there will be more MGAs), largely dismissing fears that an MGA bubble has formed and might burst.
Prime Minister Theresa May is today expected to use the G20 Summit to call for greater cooperation from social media and tech companies in stopping the online broadcast of atrocities. May will use the platform to highlight a new crisis response mechanism which is being developed by technology companies and supported by the UK as part of the Christchurch Call.
New research points to an acceleration in the growth of investment in digital transformation processes within the financial sector. The study of 1,050 financial institutions worldwide, conducted by IDC for NTT, showed businesses most active in the world of finance and capital management are driving transformation, implementing and experimenting with new technologies such as AI and advanced data services.
JBA Risk Management and FloodFlash have partnered to provide a breakthrough in event-based flood insurance, applying a parametric approach at property level for the first time. The product is an industry first and will provide bespoke insurance for policyholders in frequently flooded areas who have traditionally struggled to obtain cover.
Airmic has launched its third flagship Risk Leadership Programme, in partnership with Cass Business School. The bespoke programme aims to help risk management professionals develop strategy and leadership skills fit for the fast-paced digital world. It exposes delegates to cutting-edge thinking from academics and experts in organisational leadership, provides advice on how to build influential networks and includes a unique mentoring programme.
Failure to progress over the last year sees UK businesses falling behind in cyber incident response planning and cyber breach recovery times, handing the top spot to India -- now the best performing in the world for cybersecurity, according to a industry report. Performance in organisations in France, Germany and Singapore has also worsened in the last year, as have the financial services, telecommunications, chemicals, pharmaceuticals, oil and gas and private healthcare sectors.
Following the launch last week of an expert advisory group looking at alternative arrangements to the Northern Ireland backstop, the government has convened a second group of businesses and trade unions to help support decision-making. The group will ensure work on alternative arrangements to help replace the Northern Irish backstop by the end of 2020 is informed by the views of those trading within the island of Ireland and across the Irish Sea.
The deadline for the 2019 Risk Management Awards is approaching. Celebrating excellence in the field of risk management, these awards are the pinnacle of achievement in your sector – recognising the people, products and programmes to have excelled the most over the past year.
Price Forbes has launched a new security risks practice offering proactive, pre-incident cover designed to work alongside existing traditional insurance policies and with access to a panel of international incident response specialists as well as traditional security product lines.
Lloyd’s has created £53m of capacity to underwrite and expedite product development for emerging risks. The Product Innovation Facility, led by senior underwriters from Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo, will trial new types of insurance for complex and non-standard risks, including, but not limited to, intangible assets and supply chain
Reputational risk poses the biggest threat to charities over the next five years, while funding remains the biggest concern to charity leaders in the short-term, a new report has revealed.
A poll by the Wi-SUN Alliance cites a lack of funds or investment in projects, along with security and privacy as the key challenges to smart city development. Despite this, smart cities are expected to be commonplace within a decade.
A new study has highlighted the scale of the battle UK business leaders face when business disruption hits, as 54% admit to suffering from stress-related illnesses or damage to their mental wellbeing in the aftermath of cyber attacks, IT outages or network failures. Research from Sungard Availability Services highlights the extent to which senior executives are linked to their company’s resilience. Findings from the study of 250 C-Suite respondents in companies with 500+ employees in the UK, found 49% of CEOs have suffered from stress-related illnesses and/or damage to their mental wellbeing, a figure which rises to 62% among CIOs/CTOs.
Three EU countries are in danger of derailing the EU’s fraught climate change targets, with Hungary, Poland, and the Czech Republic unwilling to place the EU’s strategic programme for 2019-24 in writing. The original draft was to place a 2050 net zero target in place, as the UK has unilaterally done, but this has been removed.
The European Commission has published new guidelines on corporate climate-related information reporting, as part of its Sustainable Finance Action Plan. The guidelines are aimed at providing companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact of climate change on their business.
The introduction of the General Data Protection Regulation (GDPR) one year ago, together with the narrow reporting window, lack of detailed regulatory guidance and threat of multi-million pound fines within this, has changed the risk environment for organisations and led to a dramatic increase in data breach notifications to the ICO, suggests a new report by law firm Pinsent Masons. In the nine months from the implementation of GDPR (25 May 2018 – 25 February 2019) the ICO received a total of 11,562 notifications. A spike in notifications was seen almost immediately post GDPR, with a nearly five-fold increase from April 2018 (under 400 notifications) to June 2018 (over 1,700 notifications).
Lloyd's of London has announced the creation of new advisory committees to guide its future strategic direction. With separate committees for the Global and London aspects of its business, the panels draw on the experience of some of the insurance industry's most senior figures. The advisory committees will be responsible for supporting the creation of the future at Lloyd’s, which it says is focused on offering better value for customers through risk management products and services, simplifying access to the market, reducing the cost of doing business, and building an inclusive, innovative culture that attracts the best talent.
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.
Large shipping losses are now at their lowest level this century having declined by over 50% y-o-y, according to Allianz Global Corporate & Specialty’s Safety & Shipping Review 2019. In 2018, 46 total losses of vessels were reported around the shipping world, down from 98 12 months earlier, driven by a significant decline in activity in the global loss hotspot, South East Asia, and weather-related losses (10) halving after quieter hurricane and typhoon seasons.
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 Organisation (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.
Most jobs have the potential to create tension, stress and anxiety. You don’t have to be a teacher or a surgeon to experience stress. Even in professions considered to be ‘low risk’, the risk of work-related stress is ever present: workload, organisational change and workforce dynamics are all contributing factors within most office environments. And outside the office, any number of issues may be affecting the ability of staff to carry out their roles to the best of their ability – physically and mentally.
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.