Daily Market Update - June 26, 2014

Daily Market Update - June 26, 2014 | Insurance Business America

Daily Market Update - June 26, 2014

The rise to power of bank risk officers… A report says insurance firms need to share more data… Lift-sharing smartphone app firms to be better insured… And Asia’s environmental risk management could be a model for the world…

Risk officers more powerful than before the economic crisis
With financial institutions having got burnt and regulators demanding tighter controls, the role of risk managers has never been more important. Previously a bank’s risk department assessment would have been considered, but potentially overruled; now they are king. At the multinational Wells Fargo for example, even losing business to competitors is less of a concern than taking a too greater risk. Michael Loughlin heads up a risk management team of 2,300 and has seen his department grow by 600 in two years. This is far greater than the regulatory minimum requirements but such is the importance of effective risk management by the finance sector. Mr Loughlin says that when his department says no to a strategy or product, it usually means no.  Read the full story.
 
Insurance firms must learn to share
A new report says that insurers need to share their data to allow greater analysis for business insights. The study, albeit by an insurance software company, suggests that the ability to share and analyse big data from across the industry is key to future success. The head of claims operations at global brokers Willis, says that data is beneficial to the industry and creates healthy competition. Read the full story.
 
Ride sharing firms to boost insurance cover
A bill was approved by a Senate Insurance Committee yesterday that will require greater levels of insurance cover for ‘ride-share’ firms such as Uber and Lyft. Currently the firms provide cover only when the customer makes a booking with a driver; the new rules will mean that drivers will be required to have cover of a minimum of $750,000 whenever they are available for bookings. The Committee say that the changes are to ensure protection for passengers and that it is not its place to stand in the way of technology. Read the full story.
 
Environmental risk management in Asia could be model for the world
Asian countries should work together to manage environmental risk across the continent. That was a key message yesterday, from the Indian minister of state for home, Kiren Rijiu, addressing the Asian Ministerial Conference on Disaster Risk Reduction. My Rijui said that getting public and private sectors working together was an important part of the strategy. The conference, held in Bangkok, and organised by the UN office on disaster risk reduction (UNISDR), heard that India had done commendable work on evacuation of people during recent disasters in the country. The head of the UNISDR, Margareta Wahlstrom, said that the ways that Asian countries have saved lives and economic losses over the last few years can be “a model for the world”. Read the full story.
 
Dubai health authority to regulate health insurance
The Dubai Health Authority will take control of regulating healthcare cover both at the provider and insurer ends. Mandatory health cover is being introduced in phases and the Health Authority’s involvement is designed to ensure that prices are within set parameters and that disputes are settled out of court. Read the full story.