Daily Market Update - September 26, 2014

Panic as computer bug causes clear and present danger… Expert warns of complacency on hurricanes… What ‘big data’ could be doing for the insurance industry…

Risk Management News

By

Panic as computer bug causes clear and present danger

A new computer virus is causing major concern among governments, financial institutions and even military operations. The bug could allow millions of devices to be hacked, taking down systems and compromising data. ‘Shellshock’ as it’s been called targets a piece of software called Bash, found in Apple Mac and Linux operating systems and internet servers. The US National Cyber Security Division has given Shellshock its highest rating for severity but rates it as low for complexity, meaning it is easier for hackers to exploit the weakness, which has existed for two decades. With the Bash software being used in so many industrial and infrastructure control systems this vulnerability has the potential for maximum impact and an expert from the University of Surrey in the UK says that hackers are already exploiting the bug but not enough is known of how. This issue could affect 500 million computers and consumers are being advised not to use credit and debit cards online until a solution is in place. Read the full story.
 
Expert warns of complacency on hurricanes

Generally speaking this time of year means that the worst of the hurricane season will be over and this year has seen a low rate of ‘named’ storms in the Atlantic US. However, an expert from Texas says that we should not be complacent and assume that the season is over. Bill Read from TV station KPRC says that there are many incidents of devastating storms in late September and into October. In 1989, a hurricane hit in mid October and although it was a relatively small one it caused considerable damage and three people died. Read says that forecasting can only really look five days ahead so despite a quiet outlook he’s keeping his hurricane supplies for now. Read the full story.
 
What ‘big data’ could be doing for the insurance industry

The insurance industry could benefit hugely from the greater use of ‘big data’ according to Gil Allouche, the Vice President of Marketing at Qubole. Writing for the Smart Data Collective, Allouche highlights five key areas that the industry could use big data to gain better insights into risks. Firstly, predicting future diseases; using data about clients’ current health and the likelihood of them being diagnosed with illnesses. Shaping premiums and settling claims; using data to better analyse risk will allow a better service and more targeted products and premiums, while being able to settle claims faster will always impress consumers. Reducing fraud is a big one for the industry and Allouche says that data can help combat it “like never before”. Finally, advertising. Big data allows better targeting of marketing. Read the full story.

Keep up with the latest news and events

Join our mailing list, it’s free!