Daily Market Update - September 18, 2014

Hackers’ network undetected for 12 years… Risk of working with underground storage tanks… California boosts insurance requirements for ‘taxi’ apps… And 500 fraudulent motor claims per day in UK alone…

Risk Management News

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Hackers’ network undetected for 12 years
Every day there’s a new story about cyber attacks and the targets and scale of attacks are increasingly worrying. The latest involves a group of hackers from Germany who have managed to target some highly-sensitive data from banks, corporations and governments for 12 years. Cyber security firm CyberTinel discovered and blocked the attacks and says that data that was accessed includes sensitive financial, security and even warfare documents. The group of hackers have exploited a regulatory weakness in the UK which has allowed them to set up companies as a front for their operations and obtain security certificates to gain access to the affected computer networks. Read the full story.
 
Risk of working with underground storage tanks
ACE Group has released an advisory discussing the current and emerging challenges faced by underground storage tank business owners and operators. The new report examines specific changes in state and federal regulations, increased financial responsibility requirements and presents comprehensive strategies to better manage these risk exposures. The advisory also describes the importance of working with risk and insurance professionals to ensure that the right training, maintenance management, and appropriate insurance coverage are all in place. Specific tank insurance products are available. Read the full story.
 
California boosts insurance requirements for ‘taxi’ apps
A proposal to increase insurance requirements for Transportation Network Companies such as Uber and Lyft has been signed by the Governor of California. The new law will require networks to have ‘reasonable insurance’ and will protect personal auto insurance policyholders from subsidizing commercial activities. Among the changes, it ensures California Public Utilities Commission oversight of transportation network companies, lowers the primary insurance coverage requirement in the timeframe formerly known as, “App On to Match,” to: $50,000/$100,000/$30,000 with excess coverage of $200,000 and expedites the approval process for new TNC insurance products. The law has a delayed implementation date of 1st July 2015 to allow for new products to be developed for the marketplace.
 
500 fraudulent motor claims per day in UK alone
A new report from the Association of British Insurers shows that more than 180,000 fraudulent motor claims were detected in 2013, the equivalent of almost 500 a day. These figures are in line with a report earlier this year from insurance company Aviva which has seen a sharp increase in fraudulent claims this year. Most of the attempted frauds involve non-disclosure of previous claims or motoring convictions. The ABI says that many see lying on applications or claims as a way to keep their insurance premiums low and consider insurance fraud to be a ‘victimless crime’ despite the impact on premiums for everyone. Read the full story. 

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