August 2015


WORDSTM is the e-newsletter of Worldwide Risk SolutionsTM, a UK based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information, please go to

WORDSTM – August 2015

Comment of the Month According to the Center for Strategic and International Studies in Washington DC, cyber crime costs the global economy a staggering US$445 billion a year – that is about the size of the total GDP (nominal) of Austria, number 28 on the IMF’s list of 188 countries around the world. Cyber risk is the number one risk facing the non-Life insurance industry. Almost every global insurance and risk management conference and forum attended by buyers, brokers and carriers underlines the need for understanding the risks and identifying solutions.

The Cyber Risk & Insurance Forum (CRIF) is dedicated to raising the awareness of information assurance within the cyber insurance market and risk management community through raising cyber security awareness and developing best practice guidelines and they say that only 2% of businesses are properly insured against cyber risks.

What actually is a cyber attack? A deliberate exploitation of computer systems, technology-dependent enterprises and networks. Cyber attacks use malicious code to alter computer code, logic or data, resulting in disruptive consequences which can compromise data and lead to cybercrimes, such as information and identity theft.

What is cyber insurance? Cyber insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. The ABI in England has a clear description and it reads as follows:

First-party insurance covers your business’s own assets. This may include:

  • Loss or damage to digital assets such as data or software programmes
  • Business interruption from network downtime
  • Cyber exhortation where third parties threaten to damage or release data if money is not paid to them
  • Customer notification expenses when there is a legal or regulatory requirement to notify them of a security or privacy breach
  • Reputational damage arising from a breach of data that results in loss of intellectual property or customers
  • Theft of money or digital assets through theft of equipment or electronic theft

Third-party insurance covers the assets of others, typically your customers. This may include:

  • Security and privacy breaches, and the investigation, defence costs and civil damages associated with them
  • Multi-media liability, to cover investigation, defence costs and civil damages arising from defamation, breach of privacy or negligence in publication in electronic or print media
  • Loss of third party data, including payment of compensation to customers for denial of access, and failure of software or systems

At the time of writing, a recommendation has emerged in London for the creation of a cyber catastrophe insurance pool with government support. As we hear more of cyber crime, hacking, etc, the successful insurance brokers are refining their approach to the risks and exposures and, along with specialist support from carriers, they are offering their clients valuable solutions.

Talk around the BazaarWhat has WBN been up to recently? Which countries have made important changes to their Insurance Premium Tax rates? What is the latest news on piracy in Asia? We keep you abreast of the latest developments with our comments and hyperlinks.

Spotlight – In international business, almost every market around the world does things in a different way. This often leads to misunderstandings and unfulfilled expectations. However, different does not need to mean difficult and knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. These articles help you understand different aspects of the insurance industry around the world, enabling those who do business there to feel more “at home, abroad.”

In spite of a sluggish economic environment, the global insurance industry gained momentum in 2014 and total direct premiums went up after a languid period in 2013. The Life sector did very well while the non-Life sector saw a recovery. The peerless Sigma has produced yet another valuable report on the state of the world’s insurance market which includes comments on advanced markets and emerging regions. There is a wealth of figures plus a link to world insurance data dating back to 1980.

We are very pleased to be able to provide a link to 04/2015 World Insurance in 2014 at and are grateful for Swiss Re’s support. Any questions or comments should be directed to the charming Magda Ponce de León Lijs, AVP Group Strategy at

Madrid, 8th October 2015

Hotel Hesperia, Paseo de la Castellana 57, 28046 Madrid

Consumer expectations with regards to products and services are changing fast, as usage of Digital Channels becomes more common both inside and outside financial services. Certain age groups and consumer demographics are more affected by this trend than others. Certain countries are ahead on the game in this transformation, while others are following.

The “Global Summit for Insurance Innovation” Forum will bring together market leaders from many different European countries at different level of maturity with regards to Innovation and Digital to discuss the newest trends and challenges in meeting and exceeding customer expectations.

Insurance leaders have to address these strategic and operational challenges in order to build an integrated Customer Experience which brings together their value propositions across multiple touch-points, distribution channels and customer segments.

So, in the Forum, we will hear and learn from these business leaders both about “disruptive” / revolutionary innovation to the insurance established business models, as well as incremental / evolutionary changes which insurers, even those with more traditional business and distribution models, can bring into their proposition.

Come and join us at the “Global Summit for Insurance Innovation” Forum, share your experiences and discuss your point of view with the most influential executives, so you can take your business to the next level!

To register, please go to

The Presse Internationale des Assurances – “PIA”

How often is it that with market overviews and statistics, there are more ‘Notes’ at the bottom of the page than facts and figures. An exception to this is the Information on Insurance Market Development study put together by leading authority and PIA member, Ceská Asociace Pojistoven (Czech Insurance Association, and this can be accessed here.

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  • · Australia
  • · Belgium
  • · Canada
  • · Czech Republic
  • · Guernsey
  • · Netherlands
  • · Spain
  • · Switzerland
  • · United Kingdom
  • · USA

We continue to work with a growing number of networks to improve and expand their international capabilities.  If you have not already spoken to us about expanding your international markets, now might be the right time for us to conduct a feasibility study. For more information, please see the contact details below.

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As part of the on-going service of assistance to our friends around the globe, Worldwide Risk Solutions is ideally placed to help unlock the mysteries of the Lloyd’s and London insurance market. With new products and market entrants, there is always something new going on. In many cases the solution to your problem is around the corner. Send us an e-mail and we can start the process of finding that elusive solution

Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. And should you be passing through London, please let us know.

George Worsley, Editor
WORDSTM a member of

Telephone +44 (0)1444 450 919



Information appearing in WORDSTM is checked for technical accuracy but is not intended to provide a basis of knowledge upon which advice can be given. Worldwide Risk SolutionsTM accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this newsletter.