Companies are uncertain of how much coverage to acquire and whether their current policies provide them with protection. One of the roots of the uncertainty stems from the difficulty in quantifying potential losses because of the dearth of historical data for actuaries and underwriters to model cyber-related losses. Furthermore, traditional general liability policies do not always cover cyber risk. In the United States, ISO’s revisions to its general liability policy form consist primarily of a mandatory exclusion of coverage for personal and advertising injury claims arising from the access or disclosure of confidential information.
Posts Tagged ‘Casualty’
Cyber insurance has grown out of recognition that cyber-crime and data privacy are among the most concerning risks facing organizations today. With the increasing severity and frequency of cyber-attacks and data breaches worldwide, the demand for cyber-specific insurance is growing. Cyber-related risk to critical infrastructure and the overlap with cyber-terrorism are also issues that have come to the forefront.
The development of information technology and online connectivity has changed the way businesses operate. “Big data” and intricate information technology systems are vital to today’s economy. As such, we look at risk associated with cyber technology as an example of the realm of emerging “technology risk.”
A cursory reading of just a few of the publications on the topic of emerging risks quickly resembles a crash-course in risk aversion therapy. We have been subjected to a bewildering and ever lengthening series of lists of emerging risks. Swiss Re recently identified 26 such risks (1), Hannover Re has an ongoing list of 14 while the World Economic Forum in its Global Risks 2014 (2) lists 31 global risks (3).
(Re)insurers today face a degree of change and uncertainty that appears to be evolving at an ever quickening pace. Guy Carpenter has published a report, Ahead of the Curve: Understanding Emerging Risks, highlighting emerging risks facing the (re)insurance sector, including cyber-attacks, terrorism and new compensation structures for long-term bodily injuries. The report seeks to identify and categorize these risks that are now confronting the sector, as well as analyze their implications on businesses and (re)insurers.
Here we review a recent series of GC Capital Ideas Videocast interviews with a panel of experts from the Middle East and North Africa (MENA) region.
GC Videocast - MENA Insights: Nick Frankland, CEO, Guy Carpenter’s EMEA Operations: Welcome to the beginning of a new series of video interviews with an esteemed panel of experts from the MENA region. The MENA Insights interviews, conducted by Guy Carpenter, offer a snapshot of how (re)insurance in MENA is developing and the many opportunities for (re)insurers.
GC Videocast - MENA Insights: Dr. Cherif Chentir, Chief Underwriting Officer from SCOR SE: In our first MENA Insights interview, Dr. Cherif Chentir, Chief Underwriting Officer, Middle East, South Eastern Europe, Greece, Cyprus, Malta, SCOR SE, talks about the mega-projects taking place in the region and his belief that insurance penetration can only move in one direction. He looks back over his long career and charts the development of a market that has changed beyond all recognition.
GC Videocast - MENA Insights: Michael Watson, Chairman and CEO, Canopius: In our second MENA Insights interview, Michael Watson, chairman and chief executive of Canopius, talks about how the MENA region has all the right ingredients for a growth-minded reinsurer, reveals what he thinks of Lloyd’s decision to open an office in the DIFC and why Canopius is considering establishing its own presence in the region.
GC Videocast - MENA Insights: Fadi AbuNahl, Chief Executive, Trust Re: In our third MENA Insights interview Fadi AbuNahl, chief executive of Trust Re, describes how the MENA (re)insurance market has developed in recent years and what has prompted greater risk retention within the underlying market. He thinks there is plenty of reinsurance premium to go around but cautions against competing on price alone.
GC Videocast - MENA Insights: Mahomed Akoob, Managing Director, Hannover Re Takaful: In our fourth MENA Insights interview Mahomed Akoob, managing director of Hannover Re Takaful, considers the huge potential of the Takaful and Retakaful market in the region, which he thinks could grow at a faster pace than Asia. Islamic finance is driving much of the demand for Shariah compliant insurance coverage to be taken out for major infrastructure projects.
GC Videocast - MENA Insights Speaks To Guy Carpenter’s Chris Pleasant: In our fifth and final MENA Insights interview, Chris Pleasant, Managing Director of Guy Carpenter, offers an upbeat vision of the future. While the current soft market presents challenges, it belies the greater (re)insurance opportunity ahead. As local insurance markets mature and the approach to reinsurance buying becomes more sophisticated, MENA will enter the next chapter of growth.