IRL Preview – March 2020


Highlights Evolution, Growth and Challenges of Cyber Threats in South America Learn what the main causes of cyber incidences are, which industries are most vulnerable and the best approach to managing cyber risks on page 12 The Insurance Fraud Hall of Shame (podcast 28:59) – Find out what the crooks do! Insurance fraud costs upwards of $80 billion a year and it’s coming out of your pocket. James Quiggle director of communications at the Coalition Against Insurance Fraud (CAIF) is interviewed HERE (secure). Peru Has Become the Most Stable Country for Investment in Latin America According to the latest data provided by the US-based financial services JP Morgan Chase, Peru ranks first in Latin America, among other countries such as Colombia, Mexico and Chile. It not only affects positively the risk perception, but also about shows the opportunities in the internal market. Read more on page 13 Policyholders Face Substantial Challenges in Obtaining Coverage for Cyber Claims Under First-Party Property Policies Notwithstanding the wide array of cyber specific insurance products available in the market, policyholders have and will continue to look for coverage for cyber, data breach, and privacy claims under commercial general liability and first-party property policies when confronted with a claim or suit. Policyholders face numerous hurdles in obtaining coverage under these policies, which often do not apply at all or provide only limited coverage for such claims. A must read on page 14 The Biggest Security Vulnerability – People This article describes the biggest vulnerability to any organization – social engineering. It’s the art of manipulating individuals into trust, convincing them to provide confidential information. Read how easy it can be to fool people and the future implications of social engineering on page 14 Credit and Political Risk: The Effect of Climate Change With scientists predicting more severe natural disaster events, the potential impacts are becoming a growing fact for underwriters as they assess credit and political risk in emerging markets. When a natural catastrophe hits the developed world, it will not necessarily have a material impact on a country’s wider economy, political stability or credit rating. But in less-resilient regions, the economic and political effects of natural disasters can be far reaching. Learn more on page 16 Q&A with Marine market specialist Peter Townsend Marine insurance specialist Peter Townsend recently joined Miller Insurance in London to support the growth of its’ Marine business in North America. Peter has built up invaluable technical expertise and knowledge and here he talks about his role, how client needs are always evolving, and shares a few of his thoughts on recent market trends. Read what this veteran mariner thinks about the market today on page 16 Considerations of the Risk Manager on a D&O Programme – Insurance Premium Tax For risk managers the line of insurance that guarantees the most attention and focus of the board is undoubtedly directors’ and officers’ liability (D&O). In the current hardening market, terms and conditions are paramount, but when looking at the various ways in which a global insurance programme can be structured, it’s important that the risk manager is fully aware of the consequences of how the programme is written, especially potential responsibilities for compliance and additional costs to the corporate policyholder. Insurance Premium Tax (IPT) is a consequence of any insurance programme, not a driver, more on page 17 Brexit: let’s get shirty*! The UK formally left the European Union on the 31st January and pretty-well straight away the tone of communications coming out of this country has descended into threats and insults. There are eight main bones of contention at the moment; more will arise as time goes by. Each of these issues has been given a Combustibility Rating meaning whether or not the UK government would be prepared to back down. You must read George Worsley’s take on the situation post-Brexit on page 18

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Posted by Alex Hodges
Alex has 40+ years of experience in the industry with a specific interest in the international P&C business. Alex began his career with Rollins Burdick Hunter Co in Chicago; moved to New York with the firm; then back to Chicago HQ after the acquisition of RBH by Aon. As part of Aon’s global acquisition team, he moved to The Netherlands to help with the integration of Hudig-Langeveldt and Frank B. Hall in Europe, Scandinavia, United Kingdom and the Middle East. Alex has expertise managing large multinational insurance programs. His last position with Aon was managing the Aon-owned Strategic Underwriters International MGA for Kidnap, Ransom & Extortion, Workplace Violence and Political Risk. Alex is the founder of Insurance Services Network Corporation and Editor-in-Chief of the IRL – Insurance Research Letter.



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