New Ways for Insurance Buyers to Evaluate Appropriate Limits

January 21, 2016

11:00 am - 12:00 pm ET 

How is Advisen changing the way insurance buyers evaluate and select appropriate limits? Which loss types would exceed your limits? What dollar amount can you attribute to the known losses that exceed your limits? By marrying Insurance Program Benchmarking with Loss Data, you can now point to specific losses that would penetrate any given limit.

On Thursday, January 21 at 11am EST, join Daniel Hobbs & Jeff Cohen to discuss how Advisen upticks the conventional ways that limits are evaluated. Learn how you can use Loss Benchmarking to evaluate how your peer group’s loss experience compares to your current limit and how those events would impact your financial position.

Click here to register for the event: http://www.advisenltd.com/events/webinars/2016/01/21/new-ways-to-evaluate-appropriate-limits/

2016 Predictive Modeling Insights Conference – New York

January 14, 2016

8:00 am - 6:00 pm ET 

New York Law School 

185 West Broadway

New York, NY, 10013

USA

212.431.2100

Our first Predictive Analytics Conference in 2015 looked at empowering decision-makers in insurance organizations to make strategic decisions on using analytics in their business.

In its second year, this conference digs deeper and looks at turning information into insights, getting your data working for you and reaping the rewards of driving your business forward with a data-informed strategy.

Click here for more information about this event: http://www.advisenltd.com/events/conferences/01/14/2016-predictive-modeling-insights-conference-new-york/

Business Interruption Losses Increasing in Frequency, Severity, Allianz Report Finds

Corporate risk managers cite business interruption as the most significant risk they face these days, due to the interconnected nature of systems, industries, and supply chains, according to a new report, “Global Claims Review 2015: Business Interruption In Focus,” from Allianz Global Corporate & Specialty (AGCS).

AGCS found that business interruption losses now account for the majority of nearly all large property insurance claims, at an average of $2.38 million, 36 percent higher than the related average direct property damage loss. In the last five years, BI claims have been a primary loss driver for large losses following fires, storms, floods, and earthquakes, according to AGCS’ review of over 1,800 large BI claims from 68 countries.

Read more at http://www.advisenltd.com/2015/12/10/business-interruption-losses-increasing-in-frequency-severity-allianz-report-finds/

Ayers, Erin. ‘Business interruption losses increasing in frequency, severity, Allianz report finds’. ©2015 Advisen Ltd. 18 December 2015.

Wyndham Agrees to Settle Landmark Legal Battle with FTC over Data Breaches

Wyndham Worldwide Corp. will set up a wide-ranging information security program to protect cardholder data as part of a settlement reached with the US Federal Trade Commission to end a case, filed in 2012, that effectively clarified the commission’s authority to regulate data security practices.

Wyndham is not required to pay any monetary fine but its obligations under the settlement will last for 20 years. The settlement does not apply to any other categories of personally identifiable information

“We chose to defend against this litigation based on our strong belief that we have had reasonable data security in place, and that the FTC’s position could have had a negative impact on the franchise business model,” said Wyndham, in a statement. “This settlement resolves these issues, and sets a standard for what the government considers reasonable data security of payment card information.

Read more at http://www.advisenltd.com/2015/12/10/wyndham-agrees-to-settle-landmark-legal-battle-with-ftc-over-data-breaches/

Hemenway, Chad. ‘Wyndham agrees to settle landmark legal battle with FTC over data breaches’. ©2015 Advisen Ltd. 16 December 2015.

DOJ Collects More than $3.5 Billion in Fraud Settlements in 2015

The U.S. Department of Justice last week announced more than $3.5 billion False Claims Act (FCA) recoveries for fiscal year 2015. According to the department’s fraud statistics, total recoveries exceeded $3.5 billion for the fourth consecutive year, but were the lowest since 2011.

“The False Claims Act has again proven to be the government’s most effective civil tool to ferret out fraud and return billions to taxpayer-funded programs,” said DOJ’s Principal Assistant Attorney General Benjamin C. Mizer, in a December 3, 2015 press release.  “The recoveries announced today help preserve the integrity of vital government programs that provide health care to elderly and low income families, ensure our national security and defense, and enable countless Americans to purchase homes.”

Read more at http://www.advisenltd.com/2015/12/08/doj-collects-more-than-3-5-billion-in-fraud-settlements-in-2015/

Bradford, Josh. ‘DOJ collects more than $3.5 billion in fraud settlements in 2015’. ©2015 Advisen Ltd. 14 December 2015.

Risk Diagnostic Series: Environmental Report

December 2015

Advisen wrote a white paper that examines the environmental risk landscape, the risk management response, and the role of insurance in addressing environment risks. The free, 4-page paper is sponsored by Starr Companies.

Addressing Environmental Risk

Regulations including the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA or Superfund Act) and the Resource Conservation and Recovery Act of 1976 (RCRA) increasingly expose businesses with operations that could impact the environment to fines and penalties, civil liability, and criminal prosecution. Environmental contamination has been a focus of regulatory enforcement for decades, yet many companies, especially those from industries not traditionally perceived as environmental offenders, may be unaware of their potentially devastating exposure to environmental risks.

Read more at http://www.advisenltd.com/2015/12/01/risk-diagnostic-series-environmental-report/

Download the Risk Diagnostic Series: Environmental Report

A Guide to Emerging Wage & Hour Exposures

December 2015

Advisen wrote a white paper that takes a closer look at the rules and regulations recast by the pro-employee administration, as well as how Wage and Hour policies are responding to these market changes. The free, 10-page paper is sponsored by Allied World.

A Closer Look at the Evolving W&H Landscape

Advisen data show Wage and Hour cases have increased 58 percent from 2013- 2015, with a 28 percent increase in cases in the past year (2014-2015). According to another source, Seyfarth Shaw, W&H claims have risen in each of the last 15 years to 8,066 in 2014. This makes these types of claims the only growth area in workplace litigation.

Read more at http://www.advisenltd.com/2015/12/01/a-guide-to-emerging-wage-hour-exposures/

Download the Wage & Hour White Paper

Risk Diagnostic Series: Energy Report

December 2015

Advisen wrote a white paper that examines the risks faced by companies in the energy sector. It also looks into risk preparedness and the role of insurance in addressing energy risks. The free, 4-page paper is sponsored by Starr Companies

Energy Risk Management Solutions

Energy companies frequently operate in volatile and often politically charged economic and business environments which can result in rapid changes to their risk profiles. Factors such as energy price volatility, changing technology, regulatory scrutiny, and political instability increasingly expose organizations to risk.

Read more at http://www.advisenltd.com/2015/12/02/risk-diagnostic-series-energy-report/

Download the Risk Diagnostic Series: Cyber Report

Unlocking the Value in Cyber Data

December 02, 2015

11:00 am - 12:00 pm ET 

Received wisdom in the cyber marketplace says historical data on the frequency and severity of cyber risk events is not sufficient to fully quantify the financial risk of cyber exposures.

But is this true? After all, the insurance industry typically refines models. It does not wait to have the perfect data. Rather than waiting decades, do we now have enough information for organizations to understand cyber vulnerabilities—and for insurers to build the marketplace and strengthen its role in improving cyber resilience?

On December 2, Advisen will host a webinar to explore what data the industry actually has today and uncover the value of this data for quantifying cyber risk.

This free, one-hour webinar is sponsored by PivotPoint Risk Analytics.

Read more and register at http://www.advisenltd.com/events/webinars/2015/11/05/unlocking-the-value-in-cyber-data/

2015 Executive Risk Awards

December 01, 2015

6:00 pm - 10:00 pm

We're going digital!

Advisen’s Executive Risk Awards 2015 will recognize and reward excellence & innovation across the globe in the field of Executive Liability insurance. The 12 awards are open for voting, so get online and have your say on recognizing the most deserving individuals and teams in the executive risk sector. The winners of the 4 individual and 8 team Award categories will be announced exclusively in our FPN Professional editions through December 1st-8th. The Award announcements will include an exclusive interview with the winner and maybe a few kind words from their peers… You have to be a subscriber to FPN Professional to receive the good news, so sign up today.

Click here for more information.

The Power of Predictive Models in Workers’ Compensation Claims Handling

November 2015

Advisen released a white paper that addresses how the creation and correct application of predictive models in workers’ compensation claims management can help to catch patterns and trends in claims data and identify potentially serious claims before they get out of hand. The free, 9-page paper is sponsored by ACE.

The business case for predictive models

Adjusting workers’ compensation claims is part-art and part-science, which produces mixed results for carriers, adjusters and employers over time.

Read more at http://www.advisenltd.com/2015/10/21/the-power-of-predictive-models-in-workers-compensation-claims-handling/

Download the white paper titled “The Power of Predictive Models in Workers’ Compensation Claims Handling”

Cyber Loss: The Incidents are Adding Up for Accounting Firms

November 2015

What do accounting firms stand to lose in the event of a data breach? Apart from losing sensitive client information to data thieves, an accounting firm stands to lose what it values most – its reputation – the key to building a solid client base.

As custodians of financial information, accounting firms, regardless of size and location, have become a prime target of data breach. These firms may be all too familiar with crunching numbers and handling sensitive financial information, but are they well-prepared to face the magnitude of cyber incidents that confront the industry?

Read more at http://www.advisenltd.com/2015/11/13/cyber-loss-accounting-firms/

Advisen Ltd. ‘Cyber Loss: The incidents are adding up for accounting firms’. ©2015 Advisen Ltd. 18 November 2015.

Navigating the Cybersecurity Storm

November 2015

This free, 136-page digital book authored by Paul A. Ferrillo and edited by Bill Brown, seeks to answer everything about cybersecurity.

"Paul Ferrillo’s new book on cybersecurity is exactly what today’s marketplace so desperately needs: the insights of a great legal mind guided by a keen sense of the reader’s business needs. Here are the specific questions each officer and director needs to be asking."

  – Richard S. Levick, Chairman & CEO, LEVICK

"This elegantly-written treatise is a tour de force.  Paul Ferrillo explains zero day attacks, threat vectors and wiperware in simple terms and then describes their potentially awesome impact on every aspect of our lives."

 – Peter J. Beshar, EVP & General Counsel, Marsh & McLennan Companies, Inc.

Download the Navigating the Cybersecurity Storm book.

Enhancing Risk Managers’ Strategic Influence

Various surveys indicate that executive decision-makers and corporate risk managers have different enhacing-risk-managers-strategic-influence-250x324priorities, and may not even be speaking the same language, as concerns risk. This apparent disconnect may create a barrier for professional growth for risk managers who desire more influence in strategic decision making. 

Advisen published a paper that analyzes the different risk perspectives and priorities within organizations and provides actionable suggestions for bridging the gap and expanding risk manager influence and responsibilities. This free, 11-page report is sponsored by FM Global.

Read more at http://www.advisenltd.com/2015/11/02/enhancing-risk-managers-strategic-influence/

Download the Enhancing Risk Managers’ Strategic Influence Report.

An Allied World View…

In an exclusive interview with Advisen, Lou Iglesias shares his views on excess capital, industry consolidation, Allied World’s growth strategy and product innovation.

Since its inception in 2001 with 4 employees, Allied World has grown to a $3.5 billion market cap corporation with a network of global offices offering specialty property and casualty solutions to its mid-market clients.

Lou Iglesias has almost 30 years of insurance industry experience and took over as President of Allied World’s North America operations in January 2014. He now oversees 13 offices across the North American region.

Read more at http://www.advisenltd.com/2015/10/01/an-allied-world-view/

Advisen Ltd. ‘An Allied World View…’. ©2015 Advisen Ltd. 04 November 2015.

Business Leaders Ramp Up Efforts on Cybersecurity – PwC Survey

Global executives across all industries agree that maintaining a proactive cybersecurity posture has become a key to business success, and their actions now indicate that they plan to meet the risk head on by preventing and detecting cyber threats, according to Pricewaterhouse Coopers’ recent Global State of Information Security survey.

“Many executives are declaring cyber as the risk that will define our generation,” said Dennis Chesley, Global Risk Consulting Leader for PwC. “As a result, businesses are taking an enterprise-wide business-oriented view of this important risk area.”

Read more at http://www.advisenltd.com/2015/10/14/business-leaders-ramp-up-efforts-on-cybersecurity-pwc-survey/

Ayers, Erin. ‘Business leaders ramp up efforts on cybersecurity – PwC survey’. ©2015 Advisen Ltd. 30 October 2015.

Directors Need to Take Their Cybermetrics

Companies tend to narrowly focus on IT risks that are limited to personally identifiable information and the related systems that protect such information.

But that is only a part of the discussion that should be happening in the boardroom, according to a report by PwC.

Read more at http://www.advisenltd.com/2015/10/15/directors-need-to-take-their-cybermetrics/

Chapman, Cate. ‘Directors need to take their cybermetrics’. ©2015 Advisen Ltd. 28 October 2015.

Where’s the Beef?

The Justice Dept. has sued Nebraska Beef Ltd. for failing to comply with the terms of a settlement agreement that the parties entered to resolve a civil rights investigation.

The complaint alleges that Nebraska Beef entered into a settlement agreement with the Justice Dept. on Aug. 24, 2015, to resolve the department’s investigation into whether the Omaha-based company was discriminating against work-authorized non-citizens, the DOJ said in an Oct. 13 press release.

Read more at http://www.advisenltd.com/2015/10/14/wheres-the-beef/

Chapman, Cate. ‘Where’s the beef?’. ©2015 Advisen Ltd. 26 October 2015.

New study, recent criminal conviction sheds light on the ‘malicious insiders’ threat

While large cyber attacks and data breaches may get the headlines, a recent study prepared by the Ponemon Institute and Hewlett-Packard and a recent criminal conviction of a Los Angeles Times reporter that disclosed corporate passwords on a hacker website serve as additional reminders that “malicious insiders” still pose the largest security threat to an organization.

Ponemon Institute/Hewlett-Packard Study: Malicious Insiders Can Cause the Most Serious Cyber Incidents

The Ponemon Institute and Hewlett-Packard (HP) published the study, “2015 Cost of Cyber Crime Study: Global,” which provides insight into the increasing frequency and costs of cyber attacks against governments and businesses around the world.

Read more at http://www.advisenltd.com/2015/10/13/new-study-recent-criminal-conviction-sheds-light-on-the-malicious-insiders-threat/

Rowe, Todd. ‘New study, recent criminal conviction sheds light on the ‘malicious insiders’ threat’. ©2015 Advisen Ltd. 23 October 2015.

2015 Cyber Risk Insights Conference – New York

http://www.advisenltd.com/events/conferences/2015/10/20/2015-cyber-risk-insights-conference-new-york/ The WORLD’S LARGEST Cyber Risk event for P&C Professionals is a one day program that will feature the top experts in the cyber insurance space. 

U.S. Senator Presses Experian for Info on T-Mobile Breach

The top ranking Democrat on the U.S. Senate Banking Committee pressed data collection and credit firm Experian for information on the recent data breach that exposed the personal details of around 15 million T-Mobile customers, hinting that Experian’s credit monitoring and identity theft resolution services should be questioned for effectiveness.

Sen. Sherrod Brown (D-OH) wrote to the company, “Experian has files on more than 220 million people. Protection of this information is of the utmost importance, especially because the scope of the information is vast and virtually no consumer can apply for credit without entering your system.

Read more at http://www.advisenltd.com/2015/10/15/u-s-senator-presses-experian-for-info-on-t-mobile-breach/

Ayers, Erin. ‘U.S. senator presses Experian for info on T-Mobile breach’. ©2015 Advisen Ltd. 21 October 2015.

Cyber Loss: Your Data May Not Be As Immune As You Think

The healthcare industry had more than its fair share of cyber incidents in 2014. Among the biggest health data breaches involved Community Health System, Sutherland Healthcare Solutions, and Touchstone Medical Imaging. 

2015 is also shaping up to be another bad year as a spate of cyberattacks were reported for the UCLA Health System, Premera BlueCross BlueShield, Anthem, and many other health institutions.

Read more at http://www.advisenltd.com/2015/10/15/cyber-loss-healthcare-data/

Advisen Ltd. ‘Cyber Loss: Your data may not be as immune as you think’. ©2015 Advisen Ltd. 19 October 2015.

Can Statistics Be Used To Predict Data Breaches?

As the East Coast closely watched meteorologists’ models and predictions to prepare for Hurricane Joaquin, it may be a good time to consider the role of using statistics and models to predict the next data breach.

A recent study entitled Hype And Heavy Tails: A Closer Look At Data Breaches uses statistics and modeling to call into question how we view data breaches. Despite the increase in media reports on data breaches since 2005, the statistical models in this study suggest large-scale data breaches, such as those seen with Anthem and Home Depot, may actually be decreasing.

Read more at http://www.advisenltd.com/2015/10/08/can-statistics-be-used-to-predict-data-breaches/

Rowe, Todd. ‘Can statistics be used to predict data breaches?’. ©2015 Advisen Ltd. 16 October 2015.

US-EU Safe Harbor decision raises uncertainty, data privacy concerns

The U.S.-EU Safe Harbor agreement, used since 2000 by multinational companies for legally transferring data owned by European Union citizens to the U.S., is invalid, due to the determination by the EU’s Court of Justice that the United States may provide government access to private citizen data.

Privacy experts say that the decision thrusts businesses that rely upon the Safe Harbor to move data freely around the globe into a state of uncertainty, with the possibility of examinations of company privacy practices, potential lawsuits, and added costs of developing alternatives to the agreement.

Read more at http://www.advisenltd.com/2015/10/08/us-eu-safe-harbor-decision-raises-uncertainty-data-privacy-concerns/

Ayers, Erin. ‘US-EU Safe Harbor decision raises uncertainty, data privacy concerns’. ©2015 Advisen Ltd. 14 October 2015.

Higher and Higher: Cyber Insurance Towers Take Careful Construction

Much like the physical construction of a skyscraper, building a cyber insurance tower requires a strong foundation, careful planning of each layer, plenty of ventilation, and a healthy dose of innovation to meet the needs of all insureds and insurers involved on an account.

With cyber events occurring with regularity in nearly every industry, no insurer wants to be the sole company on the hook for a claim. Crafting an insurance tower means as many as 45 to 50 insurers can handle a portion of the hundreds of millions in coverage large multinational corporations seek nowadays.

Read more at http://www.advisenltd.com/2015/09/24/higher-and-higher-cyber-insurance-towers-take-careful-construction/

Ayers, Erin. ‘Higher and higher: Cyber insurance towers take careful construction’. ©2015 Advisen Ltd. 30 September 2015.

7 Cyber Risk Stakeholders and Why They Matter

Imagine you’re the CFO at a firm involved in sensitive M&A discussions with your bankers and you receive an email asking for a small bit of non-public information on your company, the kind you’ve passed on before. You send the information—and later find you were the victim of a sophisticated cyber-attack.

Now imagine you’re in charge of operations at a manufacturing facility. Out of the blue, your employees report that they have lost control of key systems. It’s impossible to shut down a blast furnace correctly, endangering the safety of employees and others and threatening massive damage. You, too, have been the subject of a cyber-attack.

These events underscore the new reality in cyber risk management: It is no longer just an IT issue. Everyone—from individual employees to risk managers to your board of directors—now has a stake in managing cyber risk comprehensively, across the enterprise.

Read more at http://www.cyberrisknetwork.com/2015/09/24/7-cyber-risk-stakeholders-and-why-they-matter/

Reagan, Thomas. ‘7 cyber risk stakeholders and why they matter’. ©2015 Cyber Risk Network. 29 September 2015.

Mid-market, HNW join Fortune 1000 in purchasing KRE insurance in increasingly global world

Several years ago the demand for Kidnap, Ransom and Extortion (KRE) insurance was driven by increases in reported kidnappings, with many more going reported.

Today, kidnappings remain a large concern and still many—as many as 80 percent—go unreported but demand for KRE products may result more from globalization than headline-grabbing incidents.

Read more at http://www.advisenltd.com/2015/09/16/mid-market-hnw-join-fortune-1000-in-purchasing-kre-insurance-in-increasingly-global-world/

Hemenway, Chad. ‘Mid-market, HNW join Fortune 1000 in purchasing KRE insurance in increasingly global world’. ©2015 Advisen Ltd. 23 September 2015.

Female farmworkers in Fla. win $17M in harassment suit

A federal jury in Miami returned a unanimous verdict awarding a total of $17,425,000 to five former female employees of Moreno Farms Inc., a produce growing and packing operation in Felda, Fla., who suffered sexual harassment and retaliation, the EEOC said.

Two sons of the owner of Moreno Farms and a third male supervisor engaged in graphic acts of sexual harassment against female workers in Moreno Farms’ packaging house, including regular groping and propositioning, threatening female employees with termination if they refused the supervisors’ sexual advances, and attempting to rape, and raping, multiple female employees, according to the US Equal Employment Opportunity Commission.

Read more at http://www.advisenltd.com/2015/09/14/female-farmworkers-in-fla-win-17m-in-harassment-suit/

Chapman, Cate. ‘Female farmworkers in Fla. win $17M in harassment suit’. ©2015 Advisen Ltd. 21 September 2015.

Variable Pay Hits Record as Companies Weigh Risk Against Optimism

Companies are spending the most ever on variable pay for salaried exempt workers, according to Aon Hewitt, as optimism about the economy is tempered by a greater emphasis on risk management.

Funds allocated for incentives, bonuses and cash awards climbed to a non-inflation-adjusted 12.9 percent of payroll spending in 2015, the highest in the 39 years of the US salary increase survey.

Read more at http://www.advisenltd.com/2015/09/09/variable-pay-hits-record-as-companies-weigh-risk-against-optimism/

Chapman, Cate. ‘Variable pay hits record as companies weigh risk against optimism’. ©2015 Advisen Ltd. 18 September 2015.

Cyber Espionage Takes Center Stage for Foreign Relations

Cybercrime continues to increase, plaguing businesses, governments, and citizens, but one form of attack – cyber espionage — threatens intellectual competitiveness and economic and military security while potentially going unnoticed and with few cyber insurance options in the marketplace.

This week, reports indicated that the White House may implement sanctions against China over the stealing of state secrets and private sector business research and development. The move would be the first to formally employ an executive order issued by Pres. Barack Obama last spring, and it follows the massive data breach at the U.S. Office of Personnel Management (OPM) that experts have speculated allowed nation-states to tap into the personally identifiable information of government intelligence agents.

Read more at http://www.advisenltd.com/2015/09/03/cyber-espionage-takes-center-stage-for-foreign-relations/

Ayers, Erin. ‘Cyber espionage takes center stage for foreign relations’. ©2015 Advisen Ltd. 11 September 2015.

NLRB Redefines Joint-Employer Status, Potentially Extending Liabilities

The National Labor Relations Board has restored an earlier, more expansive definition of what it means to be a joint employer in a decision with ramifications for franchisers such as McDonald’s and companies that use staffing agencies, independent contractors and other non-traditional work arrangements.

The 3-2 decision on Aug. 27 involving Browning-Ferris Industries of California could make the companies more liable for wage and hour and other employment practices liabilities.

Read more at http://www.advisenltd.com/2015/08/28/nlrb-redefines-joint-employer-status-potentially-extending-liabilities/

Chapman, Cate. ‘NLRB redefines joint-employer status, potentially extending liabilities’. ©2015 Advisen Ltd. 9 September 2015.

Gender Diversity on Boards Grows Organically If Slowly in US

While countries like Germany legislate against all-male company boards, the US chips away at the status quo without government quotas or targets.

“It’s easy to say, put a woman on the board,” said Charlotte Laurent-Ottomane, executive director of Thirty Percent Coalition and former executive vice president at Alcatel-Lucent. “We want a qualified woman.”

Read more at http://www.advisenltd.com/2015/08/26/board-gender-diversity-grows-organically-if-slowly-in-us/

Chapman, Cate. ‘Gender diversity on boards grows organically if slowly in US’. ©2015 Advisen Ltd. 2 September 2015.

Bank of England Probes Insurers’ Cyber Readiness

The Bank of England recently sent questionnaires to insurers under the regulatory agency’s authority, requesting information on the companies’ specific plans to mitigate cyber risk, as well as the cyber insurance they write.

The Bank asked such questions as “How is consumer Personally Identifiable Information (PII) classified, how long is this data retained, how is it secured, if encrypted once stored then to what standard is it encrypted?” and what type of vulnerability testing insurers do.

Read more at http://www.advisenltd.com/2015/08/23/bank-of-england-probes-insurers-cyber-readiness/

Ayers, Erin. ‘Bank of England probes insurers’ cyber readiness’. ©2015 Advisen Ltd. 28 August 2015.

Cyber Risk Could Ground Drones Before They Take Off, Lloyd’s Report Suggests

The vulnerability to cyber attacks could threaten the development of the drone industry, according to a new report from Lloyd’s of London, which suggested that insurers must take into account the potential liability associated with drones that could be hacked while underwriting.

Despite the wide potential for positive uses of drones in the fields of agriculture, media, insurance, and more, more attention must be paid to cybersecurity by the manufacturers of drones, as well as the insurance industry as it adds this risk to other more traditional aviation risks, Lloyd’s commented. Much as cyber risk blurs the line for many other lines of business, drone operators face risks arising out of privacy breaches, property damage, and hacking.

Read more at http://www.advisenltd.com/2015/08/20/cyber-risk-could-ground-drones-before-they-take-off-lloyds-report-suggests/

Ayers, Erin. ‘Cyber risk could ground drones before they take off, Lloyd’s report suggests’. ©2015 Advisen Ltd. 26 August 2015.

Pressure on CISOs Increases Amid Few Resources, Deloitte Says

Chief information security officers (CISOs) face new pressures every day to safeguard data and critical assets against increasing cyber threats as well as new regulatory scrutiny, according to a new report from Deloitte.

As their job requirements multiple, CISOs find that resources and funding to address security problem do not always materialize, Deloitte research indicates. In addition, the firm found that ineffective communication and reporting can stymie proper information security efforts, as can lack of support from other executives.

Read more at http://www.cyberrisknetwork.com/2015/08/13/pressure-on-cisos-increases-amid-few-resources-deloitte-says/

Ayers, Erin. ‘Pressure on CISOs increases amid few resources, Deloitte says’. ©2015 Cyber Risk Network. 18 August 2015.

Cybercriminals in the Crosshairs as Authorities File Charges Against Hackers

In recent weeks, authorities have indicted or charged several individuals allegedly involved in cybercrime, prompting the hope that those responsible for cyber attacks, loss of sensitive personal information, and identity theft can begin to be held accountable for their actions.

In the last two weeks, the Department of Justice and U.S. attorneys in Pennsylvania, Georgia, and the District of Columbia announced the ‘dismantling’ of Darkode, a notorious online cybercrime forum. The forum allowed hackers a password-protected online venue for selling, sharing, buying, and trading stolen information as well as tricks and tools for unauthorized access to computer systems and electronic devices.

Read more at http://www.advisenltd.com/2015/07/23/cybercriminals-in-the-crosshairs-as-authorities-file-charges-against-hackers/

Ayers, Erin. ‘Cybercriminals in the crosshairs as authorities file charges against hackers’. ©2015 Advisen Ltd. 14 August 2015.

Cyber Reinsurance Pool Recommended to Boost UK’s Coverage Options

A new report calls upon the United Kingdom government and cyber insurance marketplace to band together to form a catastrophe reinsurance fund to better combat cyber risk, especially on property damage, third-party liability, and business interruption.

Taking the economy’s reliance on information and communications technology as a given, a new report notes that our cyber world, while vital, is also vulnerable. That vulnerability has been met with improved cybersecurity practices available from a wide range of security firms, as well as a rapidly growing cyber insurance marketplace. However, for the insurance industry to fully address cyber risk, the report, developed by Long Finance and Z/Yen Group and sponsored by APM Group, asserted that a public-private partnership in the form of a catastrophe reinsurance pool would help.

Read more at http://www.advisenltd.com/2015/08/06/cyber-reinsurance-pool-recommended-to-boost-uks-coverage-options/

Ayers, Erin. ‘Cyber reinsurance pool recommended to boost UK’s coverage options’. ©2015 Advisen Ltd. 12 August 2015.

EPLI Takes Stock of New Guidance on Worker Classification

Brokers and lawyers in the EPLI space have been rapidly regrouping around new guidelines issued earlier this month by the US Dept. of Labor that effectively extend employee status to many more workers.

“At the end of the day, the guidelines seem to make it even more clear that the DOL simply expects that most independent contractors are really employees under the definitions of the Fair Labor Standards Act,” said Thomas Hams, managing director and national EPLI practice leader at Aon Risk Services Central.

Read more at http://www.advisenltd.com/2015/07/29/epli-takes-stock-of-new-guidance-on-worker-classification/

Chapman, Cate. ‘EPLI takes stock of new guidance on worker classification’. ©2015 Advisen Ltd. 07 August 2015.

The Biotech Industry: Sophisticated Buyers in a Challenging Class

A sophisticated buyer is one who understands risk and program structure, is transparent, and can have high-level conversations. This is how biotech industry insurance buyers were described by panelists on Advisen’s quarterly D&O Claims Trends webinar.

While it may sound more like a broker and underwriter dream than reality, it is one of the benefits of working with this challenging class, according to the panelists.

Read more at http://www.advisenltd.com/2015/07/22/the-biotech-industry-sophisticated-buyers-in-a-challenging-class/

Bradford, Josh. ‘The Biotech Industry: Sophisticated buyers in a challenging class’. ©2015 Advisen Ltd. 31 July 2015.

Hacking in the Headlines

With the recent hack of online affair website Ashley Madison, cyber-crime is in the spotlight. However, it’s been an issue plaguing both companies and users for many years and one that shows no signs of halting.

Thanks to the increased fame of ‘hacktivists’ like the group Anonymous, who use hacking as a social justice tool, hacking is sometimes regarded as a method of extracting justice on corporations the public can’t touch.

Such is the case for Ashley Madison, who are now suffering a backlash that hinges on the negative perception of their website. To most, the hack is justified because their site promotes affairs.

Unfortunately, the idea of hacking being pro-public couldn’t be further from the truth. Despite high profile hacks against governments and businesses, the customer and average home user is still the main victim of cyber-crime. This was highlighted in 2014 when eBay was hacked and users had to change their passwords to prevent their accounts from being compromised.

Read more at http://www.cyberrisknetwork.com/2015/07/28/infographic-hacking-in-the-headlines/

Imprima. ‘Infographic: Hacking in the Headlines’. ©2015 Cyber Risk Network. 30 July 2015.

2015 Cyber Risk Awards

http://www.advisenltd.com/events/awards/2015/06/17/2015-cyber-risk-awards/ Advisen’s Cyber Risk Awards are bestowed by “People’s Choice” and leverage Advisen’s vast contact database of over 40,000 P&C professionals who care about Cyber Risk.

Settlement Reached in Grand Central Post-It Notes Insider Trading Case

A Brooklyn man has entered into a cooperation agreement to help the SEC mount evidence in an insider trading scheme in which illegal tips were passed via napkins or post-it notes at Grand Central Terminal in New York.

The US Securities and Exchange Commission last year charged a law firm clerk and a stockbroker with insider trading in a scheme that used a mutual friend to pass material, nonpublic information from the law firm’s computer systems about clients’ pending corporate transactions. That middleman was later identified as Frank Tamayo in a complaint filed in federal court in New Jersey, the SEC said July 13.

Read more at http://www.advisenltd.com/2015/07/13/settlement-reached-in-grand-central-post-it-notes-insider-trading-case/

Chapman, Cate. ‘Settlement reached in Grand Central post-it notes insider trading case’. ©2015 Advisen Ltd. 29 July 2015.

EEOC Sues UPS for Alleged Religious Discrimination

The EEOC charged United Parcel Service with violating federal law by discriminating against applicants and employees whose religious practices conflicted with its uniform and appearance policy.

UPS, the nation’s largest package delivery company, prohibits male employees who have contact with customers or who are supervisors from wearing beards or growing their hair below collar length, according to a complaint by the US Equal Employment Opportunity Commission.

Read more at http://www.advisenltd.com/2015/07/16/eeoc-sues-ups-for-alleged-religious-discrimination/

Chapman, Cate. ‘EEOC sues UPS for alleged religious discrimination’. ©2015 Advisen Ltd. 24 July 2015.

Competing Approaches to Executive Pay Seen in US, Europe: Mercer

While European companies double down on meeting “prescriptive” new regulations for executive compensation in the wake of the financial crisis, those in the US are strengthening clawback provisions and continuing to develop long-term incentive plans as an alternative to bonuses, a Mercer survey showed.

Read more at http://www.advisenltd.com/2015/07/15/competing-approaches-to-executive-pay-seen-in-us-europe-mercer/

Chapman, Cate. ‘Competing approaches to executive pay seen in US, Europe: Mercer’. ©2015 Advisen Ltd. 22 July 2015.

2015 Property Insights Conference – New York

http://www.advisenltd.com/events/conferences/2015/06/04/2015-property-insights-conference-new-york/ Advisen's 4th annual Property Insights Conference in New York City with a full-day program that last June 4, 2015.

Hamilton’s Duperreault Says Progress of Women in Insurance Still Slow

NEW YORK—Brian Duperreault walks the walk. The CEO of Hamilton Insurance Group, and former CEO of Marsh, said it’s only when people like him “get personal” in explaining the importance of gender diversity that middle management responds to the need for promoting women in insurance.

Read more at http://www.advisenltd.com/2015/07/08/hamiltons-duperreault-says-progress-of-women-in-insurance-still-slow/

Chapman, Cate. ‘Hamilton’s Duperreault says progress of women in insurance still slow’. ©2015 Advisen Ltd. 15 July 2015.

10 Traps in your D&O Insurance

By William G. Passannante and Joshua Gold, Anderson Kill

D&O Insurance Policy Improvements & Claims Strategies

D&O insurance typically provides broad coverage for alleged “wrongful acts.” Despite this breadth of coverage, disputes are not uncommon — especially where the claims are large. When buying or renewing D&O insurance coverage, it is important to work with an experienced risk manager or insurance broker who can focus not only on price, limits and structure, but on the fine print too. Below are 10 areas that can be enhanced in your D&O policies and management of claims to head off improper coverage defenses.

1. Notice Terms

The notice terms of D&O insurance policies can be made specific to a particular set of individuals within a corporation or organization. A notice condition that is tied to any “Insured” can lead to an inappropriate argument from your D&O insurance company given that the term “Insured” means any past, present or future officer or director.

Read more at http://www.advisenltd.com/2015/07/01/10-traps-in-your-do-insurance/

Passannante, William. ‘10 traps in your D&O insurance’. ©2015 Advisen Ltd. 10 July 2015.

Meeting the Challenges of Environmental Risks in International Construction

September 23, 2015 at 11am EDT

A growing number of U.S. contractors are bidding, and winning, contracts abroad. In addition to addressing the cultural and legal differences of foreign projects, contractors also should consider the significant risks posed by varying environmental regulations of each country they operate in. Before embarking on a project abroad, they should assess local environmental regulations to assure their construction work will  be in compliance. They also should review their insurance program to guarantee they have the coverage they require.

A panel of international construction and environmental law experts will examine the global environmental regulation landscape, explain risk management best practices, and discuss the insurance needs of contractors taking on projects in foreign lands.

This free, one-hour webinar is sponsored by ACE.

Panelists

The following panelists will participate in the webinar:

• David Bradford, President, Research & Editorial division, Advisen (Moderator)

• Diana Eichfeld, Assistant Vice President, ACE Environmental Risk

• Andrea Nelson, Vice President of Risk Management, Manhattan Construction Company

• Bryan Weiss, Associate General Counsel, ACE North American Office of General Counsel

Register for the Webinar

Register for Meeting the Challenges of Environmental Risks in International Construction webinar.

Read more at http://www.advisenltd.com/events/webinars/2015/07/15/meeting-the-challenges-of-environmental-risks-in-international-construction/

Federal Judge Rules Sony Plaintiffs Have Standing in Breach Lawsuit

A federal judge in California has denied an attempt by Sony Pictures Entertainment Inc. to dismiss a class-action lawsuit brought by nine employees who claim the company’s lack of adequate cybersecurity caused a massive breach that exposed financial, health and other personally identifiable information of at least 15,000 current and former Sony employees.

Sony had argued the employees lacked Article III standing because the employees failed to allege injury.

Read more at http://www.advisenltd.com/2015/06/17/federal-judge-rules-sony-plaintiffs-have-standing-in-breach-lawsuit/

Hemenway, Chad. ‘Federal judge rules Sony plaintiffs have standing in breach lawsuit’. ©2015 Advisen Ltd. 26 June 2015.

2015 Management Liability Insights Conference – Chicago

http://www.advisenltd.com/events/conferences/2015/05/19/2015-management-liability-insights-conference-chicago/photos/ Advisen’s unique Management Liability Insights Conference series will make its first appearance in Chicago with a half-day program that takes place on Tuesday, May 19, 2015. Please note that we take lots of pictures at our events, and we post them on our website.

Advisen Announces 2015 Cyber Risk Award Winners

NEW YORK— June 18, 2015 – ACE Group’s Toby Merrill, CFC Underwriting’s Graeme Newman and ACE Group’s Marcel Van Peenen were each named Cyber Risk Industry Person of the Year in the USA, London and International markets respectively at the P&C industry’s second annual Cyber Risk Awards presented by Advisen Ltd., the single source solution for insurance intelligence.

Winning companies – determined by People’s Choice voting – took home trophies in six other categories during an evening gala event at the Grand Hyatt in New York, emceed by Tom Srail of Willis who headlined this year’s program and was joined by CFC Underwriting’s Graeme Newman and XL Catlin’s Jeremy Gittler.

Additionally, Richard J. Bortnick of Traub Lieberman Straus & Shrewsberry LLP received the Cyber Risk Network 2015 Person of the Year award for his outstanding contributions.

Read more at http://www.advisenltd.com/2015/06/17/advisen-announces-winners-cyber-risk-awards/

2015 Cyber Risk Insights Conference – Chicago

http://www.advisenltd.com/events/conferences/2015/05/18/2015-cyber-risk-insights-conference-chicago/ Advisen brings back the Cyber Risk Conference series to Chicago with a full-day event addressing the critical privacy, network security and cyber insurance issues confronting risk professionals and their organizations.

Heads on a Blatter? US Indictments Target Subordinates of FIFA President, For Now

The Dept. of Justice announced the arrest in Zurich early Wednesday of seven of the 14 FIFA officials and corporate executives it charged with racketeering, wire fraud and money laundering conspiracies in connection with “a 24-year scheme to enrich themselves through the corruption of international soccer.”

But the name of Sepp Blatter–Swiss football administrator and president since 1998 of the Federation Internationale de Football Association–was absent from the list of the high ranking officials who were indicted.

Read more at http://www.advisenltd.com/2015/05/27/heads-on-a-blatter-us-indictments-target-subordinates-of-fifa-president-for-now/

Chapman, Cate. ‘Heads on a Blatter? US indictments target subordinates of FIFA president, for now’. ©2015 Advisen Ltd. 17 June 2015.

SwissRe Sees Biggest Risk for Business Insurers in the Internet of Things

Emerging risks with the highest short-term potential impact for insurance are so-called super natural catastrophes, de-globalization and the “great monetary experiment,” according to SwissRe.

The wholesale provider of reinsurance and insurance said it crowdsourced its own risk managers to identify and evaluate new threats in the third edition of its SONAR report. Highlights include pandemic risks, the proliferation of vertical cities and the dangers of LED light.

Read more at http://www.advisenltd.com/2015/05/27/swissre-sees-biggest-risk-for-business-insurers-in-the-internet-of-things/

Chapman, Cate. ‘SwissRe sees biggest risk for business insurers in the Internet of Things’. ©2015 Advisen Ltd. 10 June 2015.

Helpful Hacking — Efforts to Identify Security Flaws Increase

As it becomes clearer that anything can theoretically be hacked, security researchers have set out to warn businesses and individuals of the potential risks. However, views differ on whether security flaws in software or equipment should be widely broadcast, or even whether cybersecurity experts should be tampering with connected devices, planes, cars, or medical equipment to test them.

For example, Chris Roberts, the security researcher who was barred from boarding a plane after Tweeting about the numerous times he had hacked into airplane computer systems. Roberts and his attorneys at the Electronic Frontier Foundation claimed that his efforts had only been to improve airplane security.

Read more at http://www.advisenltd.com/2015/05/28/helpful-hacking-efforts-to-identify-security-flaws-increase/

Ayers, Erin. ‘Helpful hacking — efforts to identify security flaws increase’. ©2015 Advisen Ltd. 05 June 2015.

US Proposes Guidance for Contractor Compliance with Workplace Rules

The Department of Labor has proposed guidance for federal contractors on how to comply with basic workplace protections.

President Obama last year signed the Fair Pay and Safe Workplaces Executive Order, which will require prospective federal contractors to disclose labor law violations.

Read more at http://www.advisenltd.com/2015/05/28/us-proposes-guidance-for-contractor-compliance-with-workplace-rules/

Chapman, Cate. ‘US proposes guidance for contractor compliance with workplace rules’. ©2015 Advisen Ltd. 03 June 2015.

Data Breach Costs Projected to Hit $2 Trillion in 2019

New research from Juniper suggests that the annual cost of data breaches will top $2 trillion in 2019, the brunt of it striking North America.

“While it is responsible for under 80% of global criminal data breaches, the high-value nature of US breaches means they account for over 90% of the global cost of data breaches,” stated UK-based Juniper Research. “We assume that the cost-per-record is going to increase in future, as more sensitive data is stored online as a matter of course.”

Read more at http://www.advisenltd.com/2015/05/14/data-breach-costs-projected-to-hit-2-trillion-in-2019/

Ayers, Erin. ‘Data breach costs projected to hit $2 trillion in 2019’. ©2015 Advisen Ltd. 29 May 2015.

Why Advisen Conferences?

http://www.advisenltd.com/events/conferences/ Advisen hosts conferences worldwide for the global P&C insurance industry. We consistently deliver an audience that is 25% or more comprised of Risk Managers & Insurance Buyers, Brokers (25%-30%), Insurance Companies (30%), Lawyers (10%), and other insurance professionals (5%).

Information Assets Underinsured From Cyber Attack, Aon/Ponemon Study Says

Companies are only insuring 12 percent of global information assets from the risk of cyber attack, compared with 51 percent of tangible property, according to a global study by Aon and Ponemon Institute.

The survey of more than 2,200 companies in almost 40 countries, looked at how companies qualify and quantify the financial risk to their tangible and intangible assets in the event of a network privacy or security incident.

Read more at http://www.advisenltd.com/2015/05/11/information-assets-underinsured-from-cyber-attack-aonponemon-study-says/

Chapman, Cate. ‘Information assets underinsured from cyber attack, Aon/Ponemon study says’. ©2015 Advisen Ltd. 28 May 2015.

Enterprise Risk Management Pays Dividends Across the Board, RIMS Says

Organizations employing mature risk management practices–as assessed with the RIMS Risk Maturity Model–realize a valuation premium of 25 percent, the Risk Management Society said.

“Anecdotal evidence of the business value of ERM is abundant, but organizations of all types and their management teams, committees and regulators have been looking for value measurements verified by independent research,” RIMS said in a report. It cited a 2014 valuation study by Mark Farrell and Ronan Gallagher using RMM data on publicly traded companies.

Read more at http://www.advisenltd.com/2015/05/13/enterprise-risk-management-pays-dividends-across-the-board-rims-says/

Chapman, Cate. ‘Enterprise risk management pays dividends across the board, RIMS says’. ©2015 Advisen Ltd. 27 May 2015.

Prescription for Trouble: Healthcare Industry Faces Rising Risk, Rising Losses

As personal health information (PHI) reaches a new level of popularity among cybercriminals, the healthcare industry finds itself at a challenging crossroads – how to deflect cyber attacks while following regulatory standards and keeping information accessible for medical professionals and patients.

Several recent studies, as well as Advisen data, illustrate the problems faced by healthcare entities. Medical identity theft skyrocketed over the last few years, with a McAfee Labs report estimating that a single health credential can sell for 10 to 20 times as much as a credit card number on the darknet. Medical ID theft can be both harder to detect and prevent, costing consumers thousands of dollars to resolve.

Read more at http://www.advisenltd.com/2015/05/14/prescription-for-trouble-healthcare-industry-faces-rising-risk-rising-losses/

Ayers, Erin. ‘Prescription for trouble: healthcare industry faces rising risk, rising losses’. ©2015 Advisen Ltd. 25 May 2015.