Daily Market Update

Financial watchdog considers cyber regulations following Anthem attack… Global insurance sector M&A increases for first time in 3 years… Technology will dominate insurance but brokers are important says ABI strategist…

Daily Market Update

Insurance News


Financial watchdog considers cyber regulations following Anthem attack
Insurance companies have been warned to strengthen cyber defenses following the recent attack on Anthem. The New York Department of Financial Services superintendant says that the data breach of 80 million health insurance customers should serve as a “stern wake-up call” and vowed that the regulator would be focusing on insurers in the coming months. The NYDFS has published the results of a study into cyber security in the insurance sector and found that 95 per cent believe they have well-staffed security departments and 58 per cent had not experienced a cyber breach in the last three years. However there was a lack of top-executive involvement in cyber security with just 14 per cent of CEOs receiving monthly briefings. Read the full report.
Global insurance sector M&A increases for first time in 3 years
The level of M&A activity in the global insurance sector has reached its highest level in three years according to a report from Clyde & Co. Each six month period of last year saw 192 deals, a rise of 21 per cent from the previous year. However there are sharp regional differences. In the US and the Middle East activity surged, while in Europe it dropped back. In Asia-Pacific there was a marginal rise. Andrew Holderness, head of the law firm’s corporate insurance group says that the environment is exciting: “Looking ahead there is a sense of renewed energy around transactions across the re/insurance market which has spurred the increase in the number of deals over the last 12 months. With the number of deals announced already in 2015, it is likely that this will persist.”
Technology will dominate insurance but brokers are important says ABI strategist
Technology is a “systemic megatrend with more scope than any other to revolutionise how insurance businesses operate.” That was a key message delivered to delegates at a conference in London by Matt Cullen, the chief strategist of the Association of British Insurers. He said that technology is changing the way the industry operates, particularly with the use of big data, but also creates opportunity for the industry to find solutions to new challenges, such as insuring new digital risks. Cullen said that as well as working within new insurance environments the industry will need to find ways to access and use data while recognising the concerns of consumers with regards to their privacy. The UK has been an early-adopter of price comparison websites but Cullen told the conference that “price isn’t everything” and reminded them of the importance of brokers for their ability to offer far more than comparing prices. He said that traditional methods of buying insurance should not be replaced by technology: “I think they are just as relevant as they have ever been.” Read the full story.

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