June 26th, 2019

Global Technological Threats

Posted at 1:00 AM ET

mena_risks_briefing_paper_cover-thumbnail1Technology plays a profound role in shaping the global risks landscape in the near and longer term. Concerns about data fraud and cyberattacks were prominent again in the World Economic Forum’s Global Risks Perception Survey, with 82 percent of respondents expecting cyberattacks in the form of theft of data or money and 80 percent expecting it in the form of disruptions of operations or infrastructure to increase in 2019. Similarly, “data fraud or theft” and “cyberattacks” ranked as the fourth and fifth risks, respectively, in terms of likelihood over the next decade.

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June 25th, 2019

U.S. Terrorism Risk Backstop Up for Renewal in 2020

Posted at 1:00 AM ET

The federal backstop created by the Terrorism Risk Insurance Act (TRIA) and reauthorized as TRIPRA - along with similar public-private mechanisms that exist in other countries - remains crucial to the continued stability and health of the property terrorism insurance market.

As TRIPRA’s expiration on December 31, 2020 approaches, Marsh & McLennan Companies colleagues have spoken with Treasury Department officials and legislators in both chambers of congress, who generally recognize TRIPRA’s importance and appear optimistic about its extension.

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June 24th, 2019

Advancing Cyber Risk Management – From Security to Resilience

Posted at 1:00 AM ET

report-thumbnail-cover-imagesmallIn an increasingly digital economy, cyber threats and vulnerabilities evolve fast. But despite growing anxieties around cyber, traditional security strategies and investments continue to lag. For organizations focused on balancing their growth plans and cyber security priorities both challenges and opportunities remain.

The new report from Marsh & McLennan Insights, Advancing Cyber Risk Management: From Security to Resilience, reviews the cyber risk and regulatory landscape against the backdrop of the digital global economy. Developed in partnership with Mandiant, a FireEye company, it outlines the key factors that increase cyber risk and the complications that impact resilience, particularly for multinationals whose operations span geographies and regulatory jurisdictions.

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June 21st, 2019

Week’s Top Stories: June 15 - 21, 2019

Posted at 10:00 AM ET

2019 Terrorism Risk Insurance Report: Terrorism remains a dynamic global risk and a serious threat for people and organizations. The evolution of terrorism risk exposes many countries to complex threats from both international and home-grown groups, as well as individuals acting on their own, known as “lone wolves.” And the evolution of terrorism risk in recent years challenges risk professionals to adopt new strategies to protect properties, employees and balance sheets.

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A Dynamic Approach to Managing Life Reinsurance Arrangements: The traditional life reinsurance model typically involves perpetual treaties linked to an underlying product. In order to create alignment between the contracting parties, the treaty would follow the underlying terms of the product. However, the treaty structure may concurrently include provisions that reduce alignment between the insurer and reinsurer, to the insurer’s detriment. This approach is often wrapped in the reinsurer’s “value proposition” - providing services to support the pricing, underwriting and claims management of the underlying product.

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Seasonal North Atlantic Hurricane Outlook: Seasonal outlooks generally call for a near-normal hurricane season, relative to the 1981-2010 average. The 2019 season comes after an active 2018 season with 15 named storms, including significant impacts from Hurricanes Florence and Michael. While the traditional hurricane season begins June 1 in the North Atlantic Basin, Subtropical Storm Andrea made a brief appearance roughly two weeks before the start of the season. We have seen early beginnings to a hurricane season before, and 2019 is the fifth consecutive year with a named storm before June 1.

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As We Enter the Era of the Ecosystem Economy, Are We Prepared for the Risks? We are entering the era of the ecosystem economy, in which complex networks of companies across industries collaborate to provide seamless experiences for customers. The economic opportunity of operating in an ecosystem is sizable and unprecedented - but so are the risks.

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Sir Richard Dearlove plays down Brexit but warns insurers of risks posed by “new international order”; MMC Young Professionals’ Global Forum 2019: The impact of Brexit on the London insurance market will be minimal, according to Sir Richard Dearlove, OBE, Non-executive Chairman of Ascot Underwriting, describing Brexit as “a sideshow.” Addressing delegates at the MMC Rising Professionals Global Forum, Mr. Dearlove said: “The London insurance industry is a global industry, not a European industry, so the effect of Brexit will probably be very small.”

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And, you may have missed….

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus  “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of “silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

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Click here for additional insights from Guy Carpenter >>

June 20th, 2019

One-Year Anniversary of the GDPR: A Look Back and Ahead

Posted at 1:00 AM ET

When the European Union’s General Data Protection Regulation (GDPR) took effect in May 2018, it signaled the start of more aggressive privacy oversight and enforcement in an era of rapidly advancing technology. The diversity and scope of enforcement actions, and the intersection of data privacy regulation with technology, are likely to pose increasing challenges for regulators and for businesses.

This briefing from Guy Carpenter affiliate Marsh describes where we are one year later as the convergence of GDPR and other data privacy regulation with evolving technology - 5G networks, IoT, AI, the Cloud - will challenge businesses’ ability to foster technology innovation while also protecting privacy.  Businesses should expect the EU to take an active approach to AI’s consumption and processing of personal data, especially when it distinguishes individuals based on race, gender, political beliefs or other sensitive categories, even where the consequences are unintentional.

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June 19th, 2019

Seasonal North Atlantic Hurricane Outlook

Posted at 1:00 AM ET

hurricane1-sm

Seasonal outlooks generally call for a near-normal hurricane season, relative to the 1981-2010 average. The 2019 season comes after an active 2018 season with 15 named storms, including significant impacts from Hurricanes Florence and Michael. While the traditional hurricane season begins June 1 in the North Atlantic Basin, Subtropical Storm Andrea made a brief appearance roughly two weeks before the start of the season. We have seen early beginnings to a hurricane season before, and 2019 is the fifth consecutive year with a named storm before June 1.

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June 18th, 2019

As We Enter the Era of the Ecosystem Economy, Are We Prepared for the Risks?

Posted at 1:00 AM ET

Leslie Chacko, Managing Director of Digital, Technology and Innovation at Marsh & McLennan Solutions

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We are entering the era of the ecosystem economy, in which complex networks of companies across industries collaborate to provide seamless experiences for customers. The economic opportunity of operating in an ecosystem is sizable and unprecedented - but so are the risks.

Digital ecosystems - enabled by data, emerging technologies and innovative platforms - are anticipated to be a major contributor to unlocking the so-called USD 100 trillion digital dividend by 2025. That is larger than global GDP today.

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June 17th, 2019

New products and data key to building more resilient societies, says Schauble; MMC Young Professionals’ Global Forum 2019

Posted at 9:34 AM ET

As climate change rises up the agenda, there are huge opportunities to help companies manage risk in the burgeoning weather protection market, said Barney Schauble, Managing Principal, Nephila Advisors. Speaking at the MMC Rising Professionals’ Global Forum, he said: “It feels like the early days of the catastrophe ILS market.”

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June 17th, 2019

2019 Terrorism Risk Insurance Report

Posted at 1:00 AM ET

Terrorism remains a dynamic global risk and a serious threat for people and organizations. The evolution of terrorism risk exposes many countries to complex threats from both international and home-grown groups, as well as individuals acting on their own, known as “lone wolves.” And the evolution of terrorism risk in recent years challenges risk professionals to adopt new strategies to protect properties, employees and balance sheets.

Continue reading…