Daily Market Update

Daily Market Update | Insurance Business

Daily Market Update
Was Sony hack the work of an ex-employee?
The official line from the FBI is that the cyber attack on Sony Pictures was the work of North Korea; additional sources close to the investigation suggest that the country may have hired foreign attackers. There are other theories though and a cybersecurity firm that has been looking into the incident says it believes it could have been the work of a disgruntled employee. Sony made a group of employees redundant in May and one of them had been with the company for a decade. Silicon Valley firm Norse says that the woman, known only as ‘Lena’ and hackers with a dislike of Sony. Security and risk management professionals have been highlighting employees as a risk to cyber security for some time and surveys show that even when a staff member is dismissed passwords and protocols are often not changed. Read the full story.
Devastating year for aviation but experts say flying is very safe
For the aviation industry – and its insurers – 2014 will be remembered as a low point. The two Malaysian Airlines incidents earlier in the year and then the AirAsia crash last weekend have made headlines around the world but in total there were 22 crashes during the year, resulting in 992 deaths; 8 of the incidents involved passenger airlines. The Aviation Safety Network told NBC News that the eight passenger airline crashes was a record low since the mid-50s. This is in spite of the rapid growth in the volume of flights. Experts say that the safety of aircraft and the replacement of older stock by airlines is contributing to the reduction in disasters. Read the full story.
Homeowners blame FEMA flood maps for insurance bills
Homeowners say that have been saddled with unnecessary insurance bills because FEMA got its flood maps wrong. The agency reviewed its map of areas designated as being at risk of flooding two years ago but some homes have ended up in flood-risk zones despite being away from water and even on hills. Properties with mortgages that are guaranteed by Fannie Mae and Freddie Mac are required to have additional flood insurance. FEMA admits that it has made some errors but says homeowners can submit a ‘letter of map amendment’ to insurers absolving them from the additional insurance requirement. New maps are being drawn up to address the mistakes made. Read the full story.