Insurers assess the financial impact risk of Ebola
As concern grows about Ebola, insurers are assessing the potential risk. Although officials insist that the risk of catching the illness is low, as is an outbreak here, there is the potential for far more cases than we have currently seen. The Insurance Information Institute says that the industry has the financial reserves to cope even if there was an outbreak affecting tens of thousands in the US. The estimate is that even 100,000 deaths would only increase the cost of life insurance claims by 5 per cent. Read the full story.
Russian cyber hackers exploit Windows
A bug in the Windows operating system is allowing Russian hackers to spy on western organizations. That’s according to a report from cyber-intelligence firm iSight Partners which says that the bug exists in all modern versions of the software including the server editions from 2008 and 2012. In total 68 per cent of the world’s computers are at risk. iSight says that the attacks have been ongoing for some months but it has only just been discovered. Microsoft has responded with a security patch.
Fossil fuel companies found paying lip-service to climate risks
New research by the Carbon Tracker Initiative (CTI) reveals that 99 per cent of sampled coal, oil and gas companies recognise climate change poses a risk to their businesses – but only 7 per cent appear to adequately integrate the risk into corporate project and capital expenditure assessments. Every company in the sample acknowledges the existence of climate change as an issue with 86 per cent highlighting physical risks presented by climate change to its business. 99 per cent see potential regulatory risks arising, in particular carbon taxes and cap and trade schemes. However, these companies are failing to connect the dots by providing detailed information on resilience to low demand and price futures consistent with carbon constraints. Read the full report.
Insurers well placed to help G-20 achieve its growth aims
As a major source of long-term investment, insurers can provide significant support to the G-20 in achieving its aim of 2 per cent collective growth over the next five years. In order to do this policymakers must, however, ensure that the right regulatory and framework conditions are in place, according to a letter sent by the Global Federation of Insurance Associations to the G-20 Presidency. The letter also highlights the need for appropriate and balanced regulation, especially given the significant increase in global regulatory scrutiny that insurers now face. The need for market barriers to be removed is another issue tackled in the letter. The GFIA is particularly disappointed that certain jurisdictions, including a small number of G-20 members, have introduced new restrictive measures in their markets.
