Insurance Research Letter – February 2018

2017 Was the Costliest Year to Date – Here’s Why
“In 2017, there were 16 weather and climate disaster events with losses exceeding $1 billion each across the United States. These events included 1 drought event, 2 flooding events, 1 freeze event, 8 severe storm events, 3 tropical cyclone events, and 1 wildfire event. Overall, these events resulted in the deaths of 362 people and had significant economic effects on the areas impacted.”

According to NOAA data, 2017 became the costliest year to date, surpassing 2005, the year of Hurricane Katrina. Previously, 2005 topped the chart with $215 billion in losses. Hurricanes Harvey, Irma and Maria helped propel 2017 to a total of $306 billion in losses. Harvey created the most financial damage, resulting in nearly 41 percent of the total yearly cost, or $125 billion. Login to read more….

Tanzania insurance update

On December 11, 2017 The Tanzanian Insurance Regulatory Authority (TIRA) introduced new requirements relating to reinsurance arrangements for insurance companies registered to transact insurance business in the United Republic of Tanzania.

Insurance Research Letter – January 2018

One of Several Featured articles:
Sexual Harassment Litigation Climbs to One of Top Risks for 2018
The Time Magazine people of the year were 6 women who personified the movement to highlight the prevalence of sexual harassment globally. An ABC News-Washington Post poll released on October 17, 2017 reported that more than half of all American women—54%—have experienced “unwanted and inappropriate sexual advances” at some point in their lives. And no industry is immune.

Insurance Research Letter – December 2017

Asking Questions for Learning Lessons from the Las Vegas Mass Murder Shooting: Did Poor Communication Planning, Lack of Communication Procedures and Limited Communication Tools Technology Hamper Effective Response in the Vegas Sniper Massacre

On the night of October 1, 2017, a gunman fired hundreds of rifle rounds from his suite on the 32nd floor of the Mandalay Bay Hotel into a large crowd of concertgoers attending the Route 91 Harvest music festival near the “Las Vegas Strip,” leaving 58 people dead and 546 injured. The incident is the deadliest mass shooting committed by an individual in the United States. The sniper’s motive is still unknown.

Insurance Research Letter – November 2017

NFIP Again Under Scrutiny, Is The Private Sector A Viable Alternative?
Recent storm activity has consumers and agents alike refocused on the need for flood insurance. The Atlantic hurricane season, which officially ends on November 30, has been particularly active most notably with back-to-back storms Harvey and Irma which may have total losses, inclusive of flood, of up to $150 billion.

The basic rule of property insurance is simple: if physical property suffers physical damage, the resulting losses are covered. But what if the property isn’t physical?

Cyber data may not be physical as we usually define it, but there’s no doubt it can be damaged and losses can result. We’ve all seen files corrupted and data lost. And we’ve all seen news stories about cyber criminals threatening the data that is the lifeblood of business in the 21st century. But the question remains: how do we insure these losses?

This summer, European Union member states will finalise implementation of the European Union’s Fourth Anti-Money Laundering Directive into their respective national laws. The Directive requires member states to update their national money laundering legislation to include the directive’s changes in certain key areas. While Anti-Money Laundering is addressed in various pieces of national legislation…

Insurance Research Letter – October 2017

US & EU sign covered agreement
The US Department of the Treasury and the Office of the US Trade Representative on Friday September 22 signed the bilateral agreement with the European Union on Prudential Measures Regarding Insurance and Reinsurance. The two sides said that the agreement provides “benefits to EU and US insurers and reinsurers operating across the Atlantic by offering them regulatory certainty, while maintaining consumer protections.”

In a nutshell, The agreement – which is a “covered agreement” in the meaning of the Dodd-Frank Act and an agreement under Article 218 of the Treaty on the Functioning of the European Union – addresses three areas of insurance oversight: reinsurance; group supervision; and the exchange of insurance information between supervisors.

Insurance Research Letter – September 2017

Protecting Cyber Property With Property Insurance – The basic rule of property insurance is simple: if physical property suffers physical damage, the resulting losses are covered. But what if the property isn’t physical? Cyber data may not be physical as we usually define it, but there’s no doubt it can be damaged and losses can result. We’ve all seen files corrupted and data lost. And we’ve all seen news stories about cyber criminals threatening the data that is the lifeblood of business in the 21st century. But the question remains: how do we insure these losses?

Hurricane disaster preparedness & recovery

In the September edition of the Insurance Research Letter we featured an article (Batten Down the Hatches: Getting Your Business Prepared for Hurricane Season) about hurricane preparedness that was written before the horrific hurricane Harvey made landfall near Corpus Christi, Texas and devastated Houston with record setting rain fall and flooding. Can you image more than four feet (51.88 + inches) of rain in Houston in just a matter of days? Read how small businesses can update disaster preparedness and recovery plans.

Insurance Research Letter – August 2017

As the ever-looming threat of a cyberattack hangs ominously over the corporate world, organizations continue to shore up their defenses against the possibility of outside and insider threats. However, many of these defenses have been disproportionately devoted to technology protections. While technology is a crucial aspect of any sound cybersecurity strategy, organizations are increasingly realizing that they have been overlooking another key element – the risk that their own employees pose towards their cyber security efforts. Recent claims data from Willis Towers Watson shows that employee negligence or malicious acts account for two-thirds (66%) of cyber breaches, where by contrast only 18 percent were directly driven by an external threat, and cyber extortion accounted for just 2 percent. The data further show that approximately 90 percent of all cyber claims are the result of some type of human error or behavior.

IRL Hot Topics By Insurance Research Letter

As the ever-looming threat of a cyberattack hangs ominously over the corporate world, organizations continue to shore up their defenses against the possibility of outside and insider threats. However, many of these defenses have been disproportionately devoted to technology protections. While technology is a crucial aspect of any sound cybersecurity strategy, organizations are increasingly realizing that they have been overlooking another key element – the risk that their own employees pose towards their cyber security efforts. Recent claims data from Willis Towers Watson shows that employee negligence or malicious acts account for two-thirds (66%) of cyber breaches, where by contrast only 18 percent were directly driven by an external threat, and cyber extortion accounted for just 2 percent. The data further show that approximately 90 percent of all cyber claims are the result of some type of human error or behavior.

Insurance Research Letter – July 2017

On September 8, 2016, the Federal Register posted the final rule Emergency Preparedness Requirements for Medicare and Medicaid Participating Providers and Suppliers. The regulation went into effect on November 16, 2016. Healthcare providers and suppliers affected by this rule must comply and implement all regulations by November 16, 2017. This rule establishes a consistent framework that mandates incorporation of best practices and lessons learned in emergency preparedness. The rule details the 17 types of healthcare facilities that are covered under the regulation. This final rule will be enforceable as of November 15, 2017. Failure to comply will cause loss of…(subscribe to read more)

This podcast is about the competitive advantages associated with pre-claim workplace triage for workers’ comp carriers…

Insurance Research Letter – June 2017

The Greatest Workplace Violence Threat to Employees is Denial
All too often in working with clients after an episode of workplace violence, we hear: “I never believed it could happen here.” Everyone must have an understanding not only of what can go wrong, but that it can go wrong in every organization anywhere, including yours, today. Learn more on page 22

Insurance Research Letter – May 2017

UK and Europe Brexit: What does it mean for the insurance industry?
By Mark Compton

Probably the most wide-ranging UK and EU regulatory development of 2016 comes out of “Brexit,” the UK’s vote to leave the EU. On June 23, 2016, voters decided, with a majority of 51.9 percent to 48.1 percent, that the UK should no longer be part of the European Union (“EU”).

The decision has wide economic and political implications but will have specific effects on

Read how the hacker-in-chief, at the direction of the Russian agents, began to identify accounts of espionage interest. This fascinating article about the recent indictment of two Russian intelligence agents and two accomplices of hacking into Yahoo’s computer systems in a breach that compromised 500-million user accounts reveals an unprecedented breach. It occurred over a several year period beginning in 2014 and was only shut down in late 2016. The Yahoo criminal indictments reveal a near “perfect storm” of hacking crimes with a combination of Russian intelligence officers committing espionage–theft of trade secrets and eavesdropping in partnership with for-hire criminal hackers stealing passwords and credit information for old-fashioned thievery.