Stochastic Modelling of Liability Accumulation Risk

Lloyd’s in collaboration with Arium, published a report that sets out a new data-driven methodology that for the first time allows (re)insurers to model liability exposure probabilistically across their entire portfolios. Advisen provided casualty loss data to support the historical analysis in this paper.

This innovative approach categorizes casualty events based on a company’s business activities – its products and services, operations and infrastructure. This allows insurers to map the economic relationships as products and services move through the economy.

Read more at http://www.advisenltd.com/2017/03/20/stochastic-modelling-liability-accumulation-risk/

This story is an excerpt of the original. The content originally appeared in Advisen White Paper Resources.

Home Depot to Pay $25 Million to Settle Data Breach Lawsuit by Banks

Home Depot has reached an agreement to pay $25 million to banks and credit unions to settle a lawsuit over the retailer’s 2014 data breach.

The lawsuit and settlement represent the consolidation of over 25 class actions against Home Depot by 50 financial institutions. The banks claimed that lax security practices led to Home Depot’s breach of information from an estimated 56 million payment cards.

“Investigation revealed hackers placed malware on Home Depot’s self-checkout kiosks in stores across the country, allowing them to steal customers’ personal financial information, including names, payment card numbers, expiration dates, and security codes,” noted the US District Court for the Northern District of Georgia in its discussion of the settlement, which still requires final approval.

Read more at http://www.advisenltd.com/2017/03/20/home-depot-pay-25-million-settle-data-breach-lawsuit-banks/

Erin Ayers, Home Depot to pay $25 million to settle data breach lawsuit by banks (March 20, 2017), available with subscription at Advisen Cyber Front Page News.

Relevancy in Cyber Requires Innovation and Collaboration

LONDON – Is the concept of “cyber insurance” already becoming outdated?

A panel of experts at Advisen’s Cyber Risk Insights conference on March 7 in London discussed the evolving cyber risk landscape and how it is shaping the industry’s business models and product initiatives.

Common threads throughout the discussion were the need for continued product innovation and collaboration outside traditional insurance silos.

“The risk is multidimensional and as insurers we need to evolve and be multidimensional for our clients to really address their needs,” said Juliet White, vice president at XL Catlin. “Our brokers also need to help us educate our insureds.”

Read more at http://www.advisenltd.com/2017/03/20/relevancy-cyber-requires-innovation-collaboration/

Josh Bradford, Relevancy in cyber requires innovation and collaboration (March 20, 2017), available with subscription at Advisen Cyber Front Page News.

A Sobering Truth: Cyber is ‘Tool of First Resort’ in Conflict

LONDON—Get your act together, folks. Cyber is going to change the way we fight and you’d best start thinking more in those terms.

For one man, this fact was good for business. General Sir Richard Barrons, former commander of the Joint Forces Command, told a packed room at the Advisen Cyber Risk Insights Conference here on March 7 that cyber is now the “tool of first resort” in conflict.

Cyber attacks are effective, and more importantly, they are easier and cheaper to carry out in order to “bend the will of an opponent” or “just bring life to a halt,” Barrons said to the captivated audience. As examples, Barrons mentioned North Korea’s attack on Sony, Russia’s attacks on Estonia and the Ukraine power grid, and the Dyn attack by a yet unknown perpetrator.  The point is to “destabilize and weaken” an enemy,” he said.

Read more at http://www.advisenltd.com/2017/03/20/sobering-truth-cyber-tool-first-resort-conflict/

Chad Hemenway, A sobering truth: Cyber is ‘tool of first resort’ in conflict (March 20, 2017), available with subscription at Advisen Cyber Front Page News.

Will Cyber-Related Business Interruption Coverage Pave the Road to Real Market Growth?

SAN FRANCISCO—One broker sitting on a panel at Advisen’s Cyber Risk Insights Conference here offered advice to his underwriting comrades: Be aggressive because the market is wide open.

“Go after manufacturers, go after industrial companies,” said Bob Parisi, managing director of cyber for Marsh, during the February 15 event. “We all know what happens in healthcare, retail, [financial institutions]—write those all day long and there will be claims. But if you want to diversify your book you’re going to have to learn how to write the property for an industrial control system.”

The discussion focused on cyber-related business interruption coverage and revealed some needs in the marketplace—at least through the eyes of the brokers on the panel.

Read more at http://www.advisenltd.com/2017/03/20/will-cyber-related-business-interruption-coverage-pave-road-real-market-growth/

Chad Hemenway, Will cyber-related business interruption coverage pave the road to real market growth? (March 20, 2017), available with subscription at Advisen Cyber Front Page News.

Increase Underwriting Efficiency Without Sacrificing the Art

Webinar Date: Tuesday, April 18, 2017

11:00 AM ET

Is underwriting an art or a science? Both! Advisen’s new Underwriting Framework combines new technologies with proprietary loss data to make the review of potential red flags faster and more streamlined. While the art of underwriting will always center on interpreting known facts, the scientific aspect has been enhanced for more efficient review, quicker renewals, and the incorporation of best practices.

On Tuesday, April 18th at 11:00 AM ET, we will showcase how our state-of-the-art Underwriting Framework can impact your ability to quote/renew/decline. This free, 30-minute webinar will share how insurers are expediting individual submissions by leveraging company information, proprietary loss data, and third-party news sources. Whether you customize your own framework or use our standard templates, you’ll spend less time gathering company information and more time evaluating it for success.

For more info and registration of the webinar, visit http://www.advisenltd.com/2017/04/18/increase-underwriting-efficiency-without-sacrificing-art/

Advisen Ltd. (2017). Increase Underwriting Efficiency Without Sacrificing the Art [Webinar].

Advisen 2017 Cyber Risk Insights Conference Chicago

Advisen again brings its acclaimed Cyber Risk Insights Conference series to Chicago with a full-day and a half event addressing the critical privacy, network security and cyber insurance issues confronting risk professionals and their organizations. An expert faculty comprised of leaders in network security, regulation, law enforcement, risk management and cyber risk insurance will offer their insights on managing risk on a rapidly evolving and increasingly dangerous threat landscape. This day of learning and networking for risk managers, CISOs, CROs, insurance brokers, underwriters, reinsurers and other risk professionals will present a global perspective on cyber threats, but also will examine how the business and regulatory environment of the Midwest influence cyber risk management decisions.

For more info and registration about this upcoming event, visit the link below:

http://www.advisenltd.com/events/conferences/05/16/2017-cyber-risk-insights-conference-chicago/

Reports on Demand Makes Benchmarking Your Renewals Simple

Webinar Date: Thursday, March 23, 2017

11:00 AM EST

When it comes to preparing for renewals or client meetings, Advisen’s automated on-demand reports make benchmarking as easy as 1-2-3. Why do it yourself on our website or rely on colleagues to assist when a summary report illustrating premiums, limits, retentions, and indicative losses is just a few clicks away? Advisen’s enhanced Client Insight tools – including Limit Adequacy, Loss Benchmarking, Placement Analytics, and indicative loss event data – export easily to Word docs which then get delivered straight to your inbox.

For more info and registration, visit http://www.advisenltd.com/events/webinars/2017/03/23/reports-demand-makes-benchmarking-renewals-simple/

Advisen Ltd. (2017). Reports on Demand Makes Benchmarking Your Renewals Simple [Webinar].

The Next Wave of Cyber Regulation

February 2017

The New York Department of Financial Services’ (NYDFS) cybersecurity rules, the European Union Global Data Protection Regulation (GDPR), and the E.U.-U.S. Privacy Shield are some of the recently introduced or updated pieces of cyber regulation featured in a paper released by Advisen. Sponsored by CyberScout, the 7-page paper examines commonalities in these regulations, discusses steps toward compliance, and provides guidance for remaining compliant and competitive worldwide.

Learn more about the paper and download it here: http://www.advisenltd.com/2017/02/27/next-wave-cyber-regulation/

Advisen Ltd | CyberScout (2017). The Next Wave of Cyber Regulation [White Paper]. Retrieved from www.AdvisenLtd.com

Silent Cyber Coverage: The Reckoning

If the headline sounds like a title to a horror movie, that may be appropriate because according to panelists here at Advisen’s Cyber Risk Insights Conference, detecting “silent” cyber coverage risks is a nightmare.

Due to an increasingly complex interconnected world, the potential for a cataclysmic cyber event cascading across multiple lines of coverage casts a shadow over the industry.

The issue is “far more of a concern than affirmative cyber [coverage] we underwrite and price,” said Brad Gow, senior vice president at Endurance. “We’re talking about legacy lines of business drafted far before this was a concern. With the Internet of Things, the attack surface grows exponentially.”

Read more at http://www.advisenltd.com/2017/02/24/silent-cyber-coverage-reckoning/

Chad Hemenway, Silent cyber coverage: The reckoning (February 24, 2017), available with subscription at Advisen Cyber Front Page News.

US Firms More Likely to be Cyber-Prepared than UK, German Firms: Hiscox

A survey of managers and IT specialists in the United States, United Kingdom, and Germany found that more than half (53 percent) of businesses are not well-prepared to handle cyber attacks, despite increases in cybersecurity spending and a clear awareness of the risk.

In its “Cyber Readiness Report 2017,” specialist insurer Hiscox evaluated survey respondents on cyber strategies, resources, technology, and processes, ranking them from novice to expert. The firm found more expertise in the US, but under a third (30 percent) of respondents overall could be considered “experts.” The gap between novices and experts most often appeared to be in their strategies and processes for addressing cyber risk.

Read more at http://www.advisenltd.com/2017/02/24/20170224us-firms-more-likely-to-be-cyber-prepared-than-uk-german-firms-hiscox/

Erin Ayers, US firms more likely to be cyber-prepared than UK, German firms: Hiscox (February 24, 2017), available with subscription at Advisen Cyber Front Page News.

FCC Proposed More Cyber Regulation for Internet Providers

The Federal Communications Commission (FCC) recently recommended greater cybersecurity oversight for internet service providers, it remains to be seen whether the advice, issued in the final days of President Obama’s administration, will be followed.

The FCC’s report, requested by Congress last fall in response to the distributed-denial-of-service attack on Dyn, Inc, indicated that ISPs have not only the ability to reduce cyber risk associated with their services, but also the responsibility to do so. The FCC emphasized the increased risk to critical infrastructure that rely on Internet connections that could occur without proper risk management on the part of ISPs, as well as cyber risks related to supply chain and mergers and acquisitions.

Read more at http://www.advisenltd.com/2017/02/24/fcc-proposed-more-cyber-regulation-for-internet-providers/

Erin Ayers, FCC proposed more cyber regulation for Internet providers (February 24, 2017), available with subscription at Advisen Cyber Front Page News.