Daily Market Update - July 8, 2014

Cyber threats now out of this world… Data, the biggest risk to our privacy… Insurance market triples in the Gulf… College football association highlights concussion risk…

Risk Management News


Growing risk in cyberspace
While many businesses and our industry is busy learning more about the relatively new risk of cyber-attack it seems our concern should not end on Earth. It’s not something most of us ever need to think about but space insurance is a niche that is growing, not least because of the reliance on satellite technology and if you thought it was all a bit ‘hi-tech’ to be vulnerable, think again. Satellites, like any other electronic equipment, have the potential to be hacked. Add to that the huge amounts of money, power and politics that come with the territory and you can soon see the risk. Whether its criminals, terrorists or unfriendly states involved, there is certainly a cyber risk and with it, challenges and opportunity for insurers. Read the full story.

Data – the growing risk to privacy
Whether it’s an online survey, internet shopping or a simple Google search, we are providing new data almost constantly. Our phones link to satellites, revealing our whereabouts; our bank accounts are online with the potential to be hacked. Our privacy is being eroded by the data that we both willingly and often unknowingly share. While our personal risk includes theft of data or our identity, for business the risk of the data they hold being compromised is huge. While financial institutions may be the first thought; all kinds of organizations hold information that competitors or criminals could find useful and the more we use connected devices, the more the risk grows. Writing in the Wall Street Journal, Richard Clarke of Good Harbor Security Risk Management suggests that privacy is a commodity that may end up being a luxury for the super-rich. Read the full story.

Insurance market triples in the Gulf
A report from Moodys credit rating agency shows that the insurance market in Saudi Arabia and other Gulf states has tripled since 2006. The growth is largely down to mandatory insurance for health, unemployment, third party motor and liability. The market is now worth $18.4 billion and growing. There has been a lot of volatility in the pricing of policies due to increased competition and a lack of regulation, although this is now changing. Moodys predict that the Gulf insurance market will continue to grow as more mandatory insurances are required across more states and this in turn creates greater awareness of products. Read the full story.

College football association highlights concussion risk
Sport can be a risky business. The US National Collegiate Athletic Association has issued new guidance to teams suggesting that they limit the amount of contact that occurs in practice sessions. The NCAA faces several concussion lawsuits and hopes to bring about a culture change in college sports. The advice, which may become legislation for college football at some point, suggests limits for the number of live practice sessions at various times of the year, and the amount of contact during those sessions. The risk management guidelines also cover medical care and the need for staff to be aware of the best procedures for dealing with an injured player. Read the full story.

Ambulance crashes into insurance office
There’s no good place to have a motor accident and no good vehicle to have it in, but there is some element of irony when an ambulance crashes into an insurance office. It happened in London yesterday and thankfully no one was seriously injured. Twitter of course was soon buzzing with reports and pictures. Read the full story.

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