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 ‘Guy Carp’
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.
Hurricane Gonzalo approached Bermuda late Friday as a Category 3 hurricane on the Saffir-Simpson scale, before making direct landfall as a strong Category 2. Maximum sustained winds at landfall were 110 mph according to the U.S. National Hurricane Center (NHC). The hurricane caused widespread structural damage and flooding, with downed trees and power lines. However, damage was less severe than expected, with no reported fatalities or major injuries in Bermuda. After clearing Bermuda, Gonzalo made a close approach to Atlantic Canada, bringing very large waves and storm force winds, but with minimal impacts. Gonzalo is now approaching the northern United Kingdom as a powerful post tropical cyclone, where it is expected to render very heavy rain and gusty winds exceeding 60 mph (100 kilometers per hour) over the next 24 hours.
Guy Carpenter hosted “The Reinsurance Industry of the Future,” the Reinsurance Symposium held in Baden-Baden, Germany on October 19. A distinguished line-up of industry luminaries expressed their views on whether the current changes impacting the reinsurance sector are permanent and structural in nature, are a tactical response to short-term conditions, or are part of the normal evolutionary process.
Matthew Day, Head of Rating Agency Advisory, Strategic Advisory EMEA - Capital Optimization
What drives (re)insurer capital planning? Maybe it is risk appetite, internal dynamic capital modeling or actuarial analysis. Or perhaps it is external pressure from regulators, rating agencies or investors. In reality, it is probably a combination of all of these factors. Faced with conflicting views of what constitutes both the available capital and the assessment of the amount required relative to the risk, optimizing (re)insurer capital adequacy is likely to be a key challenge confronting a company. Rarely will the company be able to fully satisfy all the demands. Developing a management framework to evaluate, analyze and compare these divergent needs is therefore essential to extract the maximum efficiency from (re)insurer corporate capital structure.
Massimo Reina, CEO, Continental Europe & MENA, Guy Carpenter & Company, LLC
It should come as no surprise that there is a general trend among larger cedents to centralize reinsurance buying decisions and retentions and to bundle homogeneous products. This has become possible with the improvement of available portfolio data. This practice has some obvious advantages for buyers, such as reduced spend, reduced administration, improved control over counter-party credit risks and, possibly, retention of additional profits that would otherwise be ceded to reinsurers.
Hurricane Gonzalo is now a dangerous Category 3 hurricane on the Saffir-Simpson scale and is expected to make a close approach to Bermuda, with closest approach this evening. Model guidance is in close agreement on this scenario. Gonzalo will be the strongest hurricane to affect Bermuda since Hurricane Fabian (2003), also a Category 3. Tropical storm winds are already affecting the island of Bermuda, and the onset of hurricane conditions is expected this afternoon. A significant surge event can be expected with battering 30 foot waves.
Hurricane Gonzalo is forecast to make a direct hit or close approach to Bermuda sometime on Friday, most likely as a Category 3 hurricane on the Saffir-Simpson scale. Hurricane and tropical storm force winds extend outward up to 45 miles (75 kilometers) and 150 miles (240 kilometers) from the center of circulation, respectively. After clearing Bermuda, Gonzalo should eventually make landfall in Eastern Atlantic Canada as a strong post-tropical cyclone.
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.”