Daily Market Update - October 22, 2014

Healthcare workers get new Ebola guidelines… Auto industry weighs the risk of terrorism… New report suggests insurers are backing away from climate change risk…

Risk Management News

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Healthcare workers get new Ebola guidelines
Following the infection of two nurses who’d been caring for Ebola patient Thomas Eric Duncan in Dallas, the US Centers for Disease Control and Infection has issued more detailed guidelines to healthcare workers. Guidelines have been in place since 2008 and were updated recently but this latest information is designed to ensure a more robust set of procedures. A key element of risk is the use of PPE, or personal protective equipment. It must be correctly used to be effective; that means putting it on correctly and taking extreme care when it is taken off. Training is being increased to ensure the correct use of PPE.
 
Auto industry weighs the risk of terrorism
The automobile industry has so far been considered at low risk of cyber attack, compared to the financial or retail sectors, but that could change. Motor manufacturers and the US National Highway Traffic Safety Administration (NHTSA) are working together to assess the possible risk from cyber attacks; a new center will be open within the next year or so that will collate and respond to cyber security risks. A former administrator of the NHTSA says that while car computer systems are not generally stolen, they could be hacked, potentially allowing criminals to take control of vehicles and there is scope for terrorists to exploit weaknesses; this will become a bigger issue with driverless cars. Read the full story.
 
Are insurers backing away from weather risks?
A new report due today from sustainability charity Ceres suggests that the insurance industry is moving away from exposure to weather-related incidents. As climate change brings greater challenges across the world the report concludes that losses from natural catastrophes have increased in the last 30 years while the insured portion is smaller. Reinsurer Swiss Re says that of last year’s US$116 billion in worldwide losses from weather incidents less than a third were covered by insurance. The report says that the insurance industry is not fully up to speed with the potential risks of climate change. It says that those in property and casualty lines are better prepared for increases in risk, while health insurers are less so, despite the likelihood of greater disease and poor health. As governments seek solutions to climate issues there will be further compliance requirements too. Read the full story.

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