We recommend reading Trans Re’s Cyber newsletter for the last quarter of 2017. The report covers cyber breaches including PayPal, Uber, Cryptocurrencies and others, and regulatory and legislative updates including news about Privacy Shield, Kaspersky and others. Enjoy the read.
We recommend reading the latest Trans Re's Cyber newsletter which covers notable cyber breaches and regulatory and legislative updates worldwide in addition to litigation news and cyber trends for 3Q 2017.
This Lloyd’s report introduces a much-needed new model to help fill the gap in earthquake modelling for the rapidly urbanising Middle East.
Developed by CATRisk Solutions and the Lloyd's market, the model uses a bespoke seismotectonic source that generates thousands of earthquake scenarios to give a more accurate assessment of earthquake risk. In 2017, almost a fifth of the population in the countries covered in this report is at risk from earthquakes. The model will help the market play its full potential in mitigating and transferring earthquake risk in the region.
We recommend you take a look at this interesting insight published by AIG.
This article briefly underlines that mergers and acquisitions are continuing at a steady level in spite of uncertain corporate and political landscapes in some regions.
The global M&A market reached US$3.9 trillion in 2016, down on 2015’s all-time high of US$4.7 trillion, but still representing the third best year on record, according to figures reported by JP Morgan.
The outlook is for more of the same this year; with on-going modest GDP growth expected globally many companies will look to M&A to accelerate their expansion.
We recommend you take a look at the Insurance Nexus Global Trend Map 2017.
The map is the results of a survey of over 50 international insurance and Insurtech influencers with the aim of understanding the global state of the insurance industry. The report identifies global trends and regional profiles and the key themes include analytics, IoT, fraud, cyber security, product development, and others.
It is an interesting read for insurance professionals worldwide.
We recommend taking a look at this informative Lloyd’s report.
The report, produced in association with KPMG in the UK, international law firm DAC Beachcroft and Lloyd’s insurers, helps companies understand the cyber threat better.
New Dawn Risk Group Limited announces that today it has become the latest broker to be approved as a Lloyd’s registered broker. This follows nine years of trading as an appointed representative, initially of Grosvenor Brokers (America) LLC and more recently of Carroll Insurance Group Limited.
New Dawn Risk was established in 2008, and has grown into a leading independent specialist intermediary for non-marine liability and specialty insurance / reinsurance, with 95% of its business emanating from outside the United Kingdom.
Max Carter, CEO of New Dawn Risk, commented: “We are delighted that we have taken the step of becoming a Lloyd’s registered broker in our own right. Having enjoyed the benefits of being an appointed representative from our start-up in 2008, this is a natural progression for us. We are now a full member of the Lloyd’s community, and we look forward to growing our Lloyd’s business significantly in the coming years.” Connie Dyson, Director of Broking at New Dawn Risk, added: “Lloyd’s remains as important a marketplace for specialty risks as it’s ever been, and is a centre of innovation in the global insurance industry. We are honoured to play our part in that.”
New Dawn Risk Group has its headquarters in the City of London, at the heart of the London insurance market.
Contact Katie Earl (email@example.com) for further information.
We recommend reading the latest Trans Re's Cyber newsletter which covers notable cyber breaches and regulatory and legislative updates worldwide in addition to litigation news and cyber trends for 2Q 2017.
We recommend reading this interesting White paper which was released in conjunction with Insurance Nexus Europe, for the upcoming Insurance Analytics Europe Summit taking place in London this October.
The White paper was contributed to by AIG and Zurich. The paper explains what Artificial Intelligence (AI) or machine learning is, and how it is revolutionising data analytics in insurance. Insurers can benefit from applying AI to claims, marketing, P&L analysis, etc. The paper is a must-read for anyone interested in the future of insurance.
Advisen and CyberScout recently partnered on a white paper that focuses on global preparedness in terms of cyber security insurance. The paper reviews how countries are gearing up to minimize cyber risk, and improve their risk transfer & mitigation strategies.
The white paper also presents cyber insurance take-up rates in Asia, Australia, Canada, Europe, the Middle East, the United Kingdom, and the U.S.
Click the link below to get a better understanding of the cyber insurance marketplace developments per region, and the reasons why businesses are buying cyber insurance.
Nirvana, an MGA with underwriting capacity provided by “A+” rated Lloyd’s syndicates Liberty 4472 and Renaissance Re 1458, has recently opened for business.
They focus exclusively on providing media, technology and cyber liability products for a range of customers from SMEs to multinationals.
Operating across several converging lines means that Nirvana can offer comprehensive cross-class solutions. They can write both primary and excess with a focus on UK, US and EU markets.
The seventh edition of Fitch Ratings’ Global Reinsurance Guide provides latest research on the global reinsurance sector and views on the ratings.
The report discusses the key drivers behind the negative sector outlook that Fitch maintains, as well as outlining the conditions that could lead the agency to revise its rating outlook to negative from stable.
The guide details four key issues that are expected to pose a challenge to reinsurers during 2017:
Profit deterioration is key rating sensitivity
Stabilising prices give false hope
Alternative capital capacity slows
Reinsurer consolidation stalls, but may heat up again
We recommend reading this Insurance Growth Report, published in March 2017 by Clyde & Co. The report outlines insurers growth strategies in the coming months, these include:
Merger or acquisition
Moving into new markets
Looking at opportunities to generate new products and services
Developing new processes and business models through the adoption of new technologies.
We recommend reading this report published by KPGM in January 2017.
In this report, KPMG discusses the likely impact of blockchain technology on the insurance industry, the potential it has to drive value and why major insurance companies are investing into it.
The conclusion is that blockchain technologies will create significant commercial and economic value for the insurance industry.
This is an excellent report from Allianz Global (published in March 2017) which analyses the top causes of liability loss for global businesses. The report looks at 100,073 claims with a total value of €8.85bn (750+ claims above €1m, average claim value €88,408 and median claim value €2,712) from 100+ countries in which the claims arose.
It’s a must read for liability experts, but here’s a summary of one of the main findings:
The top 10 causes of loss, accounting for over 80% of all liability losses, are:
Defective product / work
Collision / crash
Accidental nature / damage
Slips / falls / falling objects
Water / smoke / fire damage
Vandalism / terrorism
We recommend taking a look at the Lloyd’s City Risk Index 2015-2025.
The Index looks at the projected GDP of 301 cities over a ten-year period and calculates how much of it is at risk from 18 specific threats. This shows how governments, businesses and communities are highly exposed to systemic, catastrophic shocks and could do more to mitigate risk and improve resilience.
Beazley has today announced the launch of the "Anything Lineslip" in London offering terms for all US management, professional, cyber and healthcare liability risks, no matter how challenging.
The "Anything Lineslip" is led by Beazley, supported by a number of other carriers including Antares and ARK 4020 (Specialty Programs), and will seek to quote any US risk in the above classes that can be legally underwritten, provided that no other London insurer offers terms.
Adrian Cox, Beazley's head of specialty lines said, "Beazley has a strong track record in innovation and is at the forefront of promoting London as the world’s leading market for specialist insurance. The Anything Lineslip will give brokers placing these US liability risks in London the confidence that we can help even when others have said no.”
Two technological risks made it into the top ten in the evolving risk matrix, “massive incident of data fraud/theft” is in the 5th place and “large-scale cyberattacks" came 6th in the list of risks most likely to occur in the next 10 years.
The top 5 global risks in terms of likelihood are:
1. Extreme weather events
2. Large-scale involuntary migration
3. Major natural disasters
4. Terrorist attacks
5. Data fraud/ theft
We recommend reading Trans Re's excellent Cyber newsletter which covers notable cyber breaches and regulatory and legislative updates worldwide in addition to litigation news and cyber trends for March 2017.
Advisen has published an excellent infographic containing a number of 2016 D&O claims trends derived from the company’s proprietary D&O loss data of nearly 45,000 cases.
Lloyd’s, in collaboration with Arium, is publishing a new data-driven methodology that for the first time allows (re)insurers to model liability exposure probabilistically across their entire portfolios.
The new approach categorises casualty events based on a company’s business activities, - its products and services, operations and infrastructure. This allows insurers to map the economic relationships that reflect the journey of products and services as they move through the economy.
This helps (re)insurers to model liability risk systematically, regardless of risk classification, similar to the way in which they model catastrophe exposure.
This has not been possible previously and represents a big step forward in better understanding liability risk exposure.
Beazley are launching a new Owners Protective Professional Liability (OPPI) policy, Beazley DevelopPro. The product targets projects in the $100mm - $1bn range, and is intended to be purchased by the owner or developer. The limits purchased are intended to sit excess of annual policies purchased by the design team and benefit the owner / developer once any annual limits are exhausted.
Beazley will offer limits up to $10mm as a first OPPI layer, and can consider writing excess OPPI.
Beazley will consider all project types except condominiums.
Please follow the links for the wording and application. Please contact Max Carter to discuss in more detail.
Underwriters from Beazley and Hiscox will be travelling around the US in the next couple of months to talk about this new coverage with US brokers. If you would be interested in having a meeting with one of them, please let us know and we will find out when they are available.
The new Entity Inquiry & Investigation Endorsement amends the London Market Advanced Boardroom and Company Protection ABC policy. In short, the effect of this endorsement is to create broader Side C coverage to respond to costs incurred by the entity in respect of SEC inquiries and investigations.
For coverage to be triggered, there has to be a securities class action law suit filed against the company, however coverage for investigation costs (both formal and informal) incurred prior to the filing of such a law suit would also be covered.
Inquiry and investigation costs incurred prior to the actual filing of a class action law suit are subject to a 25% co-insurance by the Insured. Effectively the policy will be triggered and will pay costs retrospectively once a suit is filed. A similar coinsurance provision applies to costs for an ongoing inquiry or investigation subsequent to the settlement of the class action law suit. No coinsurance applies for costs incurred whilst a “live” class action law suit exists.
Beazley and Hiscox have indicated that this endorsement will attract an additional premium for most Insureds within a range of 15% - 20%, although some Insureds could pay more or less than this.
This is a new coverage that is not offered by other markets at this time.
Please don’t hesitate to get back to us with any specific questions or comments.
2015 was an eventful year for D&O liability. The article below lists ten top stories that impacted on the D&O market.
The long awaited GDPR is (nearly) here. Will it encourage more European businesses to focus on, and prepare for, the threat?
Punitive damages are awarded on top of compensatory damages (potentially up to 1000 multiples) to punish the defendant and deter others where the conduct of the defendant is considered egregious, wanton or malicious. Although many European countries consider punitive damages unenforceable and view them as a violation of the ‘Order Public’, this review of the most salient points and famous cases of Punitive Damages is a reminder that prudent underwriting is crucial when writing public liability and products liability business. One of the aspects to consider is what a business does with customer complaints and how it reacts on the first suspicion that a product may be defective.
This is the tenth in a series of report by the WEF on the most significant risks worldwide. Technological Risks ‘Cyber Attacks’ and ‘Data fraud or theft’ made the Top 10 Risks in terms of Likelihood out of a total of 28 global risks. This puts Technological Risks introduced by the rise of hyperconnectivity in the rank of major economic, geopolitical and environmental risks like Extreme Weather Events, Natural Catastrophes, Climate Change, and Interstate Conflicts.
To save the report and read later:
It may have been said 1000's of times before - but this article highlights why it is vital to get your IT departments involved in your Cyber insurance process from the start. It is staggering to hear that in 2013 a third of company IT departments did not get involved at all in determining adequacy of insurance coverage.
Some countries, such as Mexico, already prohibit the payment of ransoms. The US appears to have slightly shifted its position on this recently. Was this just a public relations exercise, or is there a real change of policy here?