Daily Market Update

Call for insurers to be more transparent with risk data for homeowners... World cup website attacks highlight cyber risks… US federal home loan giants spread risk to the private sector… And skills shortage looming for risk professionals…

Call for insurers to reveal risk data
A report from an Australian organisation is calling for insurers to be more transparent about how premiums are set. The independent Fire Levy Monitor says that consumers are frequently ‘in the dark’ as to why their premiums have increased. Professor Allan Fels says that “Insurance companies in Australia are more profitable than banks and this suggests an absence of effective competition. One of the things that would help drive effective competition is for consumers to be better informed.” He is hoping that regulators will take up the organisation’s recommendations which also suggests that insurers should issue short-form Product Disclosure Statements to provide further clarity to consumers. Read the full story.

World Cup websites suffer cyber attacks
Highlighting the level of risk from cyber attack, a group called Anonymous have carried out a number of attacks on websites connected to the World Cup. The ‘hacktivists’ have targeted online assets of sponsors and other organisations with ties to the football tournament; it’s in protest at the vast amount of money spent on the event. As a stark reminder that even the biggest brands are vulnerable, the attacks included the websites of Coca-Cola, McDonalds, Adidas and the Bank of Brazil.

Insurance protection for Fannie and Freddie
The US federal home loan backers Fannie Mae and Freddie Mac have insured themselves against loses of billions of dollars in the last year. The firms obtained the policies, a move encouraged by their regulator, to move more of the risk to the private sector. The risk bonds deal spreads the risk to groups of insurers and reinsurers rather than exposing the US taxpayers to the burden of sub-prime mortgages. Read the full story.

Shortgage of risk professionals
There’s a shortage of skilled risk professionals, according to recruitment consultancy Robert Walters.  The firm has surveyed employers and report that thirty-seven per cent are concerned that they may not be able to hire the risk professionals with the right skills set. While junior staff are important for succession planning, the report finds that most of those businesses looking to recruit risk managers are seeking those with experience at an intermediate level. 

Lloyds director looks back at the last decade
As he prepares to step down as Director of Finance and Operations, Luke Savage of Lloyds has been looking back at his ten years with the iconic business. He says the financial crisis was the biggest challenge for the financial industry as a whole, but believes that the well-managed insurance industry fared better than most of the sector. He has also paid tribute to the team at Lloyds who he says are ‘clever, committed and loyal’.

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