July2014

Talk Around the Bazaar

Insurers and reinsurers can now map all their flood exposures for 168 countries and for the first time get a single, consistent view of all their global flood risks, thanks to a partnership between JBA Risk Management and ImageCat. Launched in May 2014, inhance offers JBA’s Global Flood Maps as part of its comprehensive range of hazard datasets. By using the JBA flood maps in inhance international property owners and re/insurers can get a better understanding of their flood exposures at address level, particularly for areas where they have non-modelled risks. For more detail, please go to http://www.jbarisk.com/pressrelease/jba_inhance

Cambodia’s Council of Ministers has approved a draft law aimed at improving the regulation of insurance products. Insiders believe that the original insurance laws, drafted more than a decade ago, are no longer reflective of the current industry. The international award winning newspaper, Phnom Penh Post reports on this at http://www.phnompenhpost.com/business/insurance-law-reform-under-way

The cost of cyber crime for the global economy has been estimated at $445 billion (£266 billion) annually. Cyber espionage and stealing individuals’ personal information is believed to have affected more than 800 million people during 2013.  Financial losses from cyber theft could cause as many as 150,000 Europeans to lose their jobs. These are facts presented in a report from the Centre for Strategic and International Studies. Punch has an interesting summary of the findings at http://www.punchng.com/business/technology/cybercrime-costs-global-economy-445bn-annually-report/

The International Federation of Adjusting Associations held its Educational Conference in London recently and one of the issues highlighted was facing up to communications challenges when dealing with catastrophe claims. Two articles by our friend at Worsfold Media Services can be accessed at WoRdS – Newsletter – 97 – IFAA 1 andWoRdS – Newsletter – 97 – IFAA 2.

Guernsey has been named ‘best in class’ for Insurance Linked Securities (ILS) at the Professional Adviser International Fund and Product Awards 2014. An event studded with the stars of international financial centres and fund managers saw some deserved winners. Guernsey is rightfully proud of its award and readers can share this at http://www.guernseyfinance.com/press-room/news/2014/06/guernsey-wins-award-for-insurance-linked-securities/

Delta Insurance in New Zealand is the country’s only locally owned and operated specialist liability underwriter. Recently the firm was launched in Auckland and is backed by Allied World Assurance and has Lloyd’s Coverholder status and offers niche, commercial liability insurance products for financial, professional, casualty and cyber risks. For more on this exciting venture, get it from the horse’s mouth at http://www.deltainsurance.co.nz/

Pakistan should set up a Terrorism Insurance Pool according to experts in Karachi. In other countries such as India, Nepal and Sri Lanka, one can buy terrorism insurance and following the attack at Karachi Airport, there is an obvious need for this form of cover. The debate has two sides as Business Recorder tells us at http://www.brecorder.com/money-a-banking/198/1194124/

Does Canada need a national flood insurance programme? If you remember the havoc caused by the floods in Alberta last year, you would agree that there is a good argument in favour of this idea – especially when more frequent weather-related disasters are being forecast. It is not quite that simple, however, as News1130 tells us at http://www.news1130.com/2014/06/22/insurance-industry-anticipating-more-frequent-weather-disasters/

Another country very recently hit by flooding is Bulgaria where houses, roads and railway tracks were destroyed and 12 people were killed. There is no flood insurance programme in place but the prime minister has said that the government can provide financial aid after the damages are assessed. For a report on what happened, Bloomberg can tell you at http://www.bloomberg.com/news/2014-06-20/floods-kill-11-people-after-torrential-rains-flood-east-bulgaria.html

Famous quotations. Here are some words of wisdom which have survived the passage of time…

  • “Civilisation is nothing more than the effort to reduce the use of force to the last resort” – José Ortega y Gassett
  • “It has been said that democracy is the worst form of government except all those other forms which have been tried from time to time” – Sir Winston Churchill