‘Potentially the Most Risk-Laden Situation:’ Allianz Analyzes Product Recall Claims

Product recall and defective product losses for insurers have been growing steadily in recent years, costing over $2 billion in insured liability losses over the last five years, according to a new report from Allianz Global & Corporate Specialty (AGCS).

Product recalls most frequently affected the automotive industry, with the food and beverage sector coming in second, followed by IT/electronics, according to data analyzed by AGCS. The $2 billion in claims made defective products the largest driver of liability losses, according to the insurer.

“Product recalls have risen steadily in the past decade. We are seeing record levels of recall activity in size and cost today,” said Christof Bentele, head of global crisis management at AGCS. “Tougher regulation and harsher penalties, the rise of large multi-national corporations and complex global supply chains, growing consumer awareness, impact of economic pressures in research and development (R&D) as well as production and even growth of social media are just some of the contributing factors behind this.”

Read more at https://www.advisenltd.com/2017/12/06/potentially-risk-laden-situation-allianz-analyzes-product-recall-claims/

Erin Ayers, ‘Potentially the most risk-laden situation:’ Allianz analyzes product recall claims (December 6, 2017). ADVISEN FPN.

Global Breach Response – How to Select Your Key Partners

Thursday, January 18, 2018 | 11 AM EDT

It is time to get your head out of the sand and really start taking General Data Protection Regulation (GDPR) compliance seriously, because a lack of preparedness and protocols are going to cost you.

A likely reason for procrastination may have to do with the amount of work staring a company in the face. Help is needed but choosing a vendor adds another complication, right? Not if you ask some good questions to find a partner to guide your company out of the muck to peace of mind.

For more info and registration of this upcoming webinar, visit https://www.advisenltd.com/2018/01/18/global-breach-response-how-to-select-your-key-partners/

Experian |Advisen Ltd. January 2018. Global Breach Response – How to Select Your Key Partners [Webinar].

Coalition: Underwriting Cyber Like an Adversary

Coalition, launched December 5, said it has the capability to quote, bind and issue a customized cyber insurance policy online in less than 5 minutes by looking at companies like a hacker.

“We are looking at companies like a real-life adversary would for all the things we might use to hack them,” added Joshua Motta, co-founder and CEO of Coalition—described as a provider of a full suite of cybersecurity products for small and midsize businesses, including cyber and tech E&O insurance of up to $10 million, backed by Swiss Re Corporate Solutions and Argo.

Coalition’s software “thinks like an underwriter without any underwriters,” said Motta, who started his first company at 13 years old. Microsoft subsequently bought the software Motta created and then hired Motta at age 15. After high school, Motta joined information operations at the CIA where he learned “how offense works” as a component to cybersecurity.

Read more at https://www.advisenltd.com/2017/12/06/coalition-underwriting-cyber-like-adversary/

Chad Hemenway, Coalition: Underwriting cyber like an adversary (December 7, 2017), available with subscription at Advisen Cyber Front Page News.

US Senators Push for Jail Time for Executives Who Conceal Data Breaches

Fueled by anger over recent high-profile security breaches, congressional lawmakers on Nov. 30 filed a bill to potentially subject executives at organizations that do not disclose breaches to up to five years of jail time.

Members of the United States Senate Commerce Committee introduced a bill to propose prison sentences for any executives that conceal data breaches that cause any individual to lose more than $1,000. The bill, called the Data Security and Breach Notification Act, would also implement nationwide data breach notification standards, a topic that garnered significant attention during congressional hearings over breaches at Equifax, Yahoo, and Uber.

Read more at https://www.advisenltd.com/2017/12/04/jail-time-executives-conceal-data-breaches/

Erin Ayers, US senators push for jail time for executives who conceal data breaches (December 4, 2017), available with subscription at Advisen Cyber Front Page News.

No Rest for the Cyber-Wicked in 2018, Security Researchers Warn

After an active year in 2017, with some of the biggest hacks in history, businesses shouldn’t expect any relief in 2018 from cybercriminals, according to security experts. In fact, 2018 is likely to result in more advanced attacks than ever.

Research from several cybersecurity firms predict that hackers have no intention of letting up in their lucrative, disruptive cyber campaigns. One report, issued by McAfee Labs, predicted that attackers will leverage connected devices, machine learning, and artificial intelligence in order to disrupt commerce. The firm warned that this would have the effect of making social engineering efforts more difficult to detect and signal a new wave of ransomware-style attacks.

Read more at https://www.advisenltd.com/2017/11/30/no-rest-cyber-wicked-2018-security-researchers-warn/

Erin Ayers, No rest for the cyber-wicked in 2018, security researchers warn (November 30, 2017), available with subscription at Advisen Cyber Front Page News.

Cyber Trends 2017: Business Interruption a Top Concern

Cyber-related business interruption quickly became a top issue in 2017 as high-profile ransomware attacks demonstrated that just about any company can be victimized.

A panel of experts speaking on Advisen’s cyber risk trends webinar last week discussed the impact cyber-related business interruption (BI) claims have had on the insurance industry.

“This is probably one of the top issues facing clients in 2017,” explained Stephanie Snyder, SVP & national sales leader, cyber insurance at Aon. “It’s something that every company needs to consider, cyber insurance is not just about data breaches, it’s much broader than that.”

Read more at https://www.advisenltd.com/2017/11/20/cyber-trends-2017-business-interruption-top-concern/

Josh Bradford, Cyber trends 2017: Business interruption a top concern (November 20, 2017), available with subscription at Advisen Cyber Front Page News.

Holiday Parties Gone Wrong: When Holiday Celebrations Turn Into Losses

Holiday parties are oftentimes happy, enjoyable affairs meant to wind up the year in celebration. Unfortunately, that is not always the outcome for everyone. The following are some of the holiday party-related losses that are tracked in Advisen’s loss database.

Read more at https://www.advisenltd.com/2017/12/06/holiday-parties-gone-wrong-holiday-celebrations-turn-into-losses/

Advisen Ltd. December 2017. Holiday Parties Gone Wrong: When Holiday Celebrations Turn Into Losses [Notable Losses].

Preparing for the Unexpected with Umbrella and Excess Coverage

December 2017

CNA and Advisen are proud to release a white paper that highlights the advantages of getting umbrella & excess insurance coverage to keep liability claims from reaching crisis levels. The paper underscores that in terms of crisis management expense coverage, getting an umbrella insurance policy and excess coverage is like getting the right kind of prompt, empathetic response that can keep catastrophic loss from happening. It also features an infographic that shows what an umbrella policy does to assist a in mitigating reputational damage to the company and avoiding financial ruin.

Read more at https://www.advisenltd.com/2017/12/01/preparing-for-the-unexpected-with-umbrella-and-excess-coverage/

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

CNA | Advisen Ltd. December 2017. Preparing for the unexpected with umbrella and excess coverage [White Paper].