“Is water the new oil?” insurer asks
A report published by global insurance firm
Zurich this week warns of the growing risk to businesses from water scarcity. “Is Water the New Oil?” examines the reasons behind shortages including high demand, pollution and drought. Among the risks that businesses face are increased costs, supply chain and business interruptions, relocation and closure, political risk, tougher regulations and legal challenges. Many businesses have recognized the potential exposures and are now starting to disclose the financial impact of water risks to investors.
“Water is a precious commodity that is literally drying up and forcing businesses to carefully manage this resource and the risks associated with not having enough,” said James Breitkreitz, risk engineering executive technical director for Zurich Services Corporation. “While agriculture is, by far, the largest water user, this exposure can affect all types of businesses, including food and beverage companies, chemical companies and manufacturers, to name a few.” The Swiss-based insurer is urging businesses to consider the risk now and put plans in place to mitigate it.
Self-driving cars will need law, insurance to catch up
Following the news that self-driving cars are to be tested on the roads of Ontario legal and insurance experts say that there will need to be an updating of current laws and policies. Steve Kee of the Insurance Bureau of Canada says it is too soon to calculate how premiums might be affected but that the Bureau will be forming a working group to discuss the issues in the coming weeks. Legal expert Edward Prutschi told NewsTalk1010 that deciding on blame is one issue that needs to be addressed: "Am I guilty of dangerous driving if my autonomous car is speeding? Am I guilty of dangerous driving if my autonomous car swerves out of the way of another vehicle and ends up running a stop sign?" He says that sorting legal and insurance issues will likely take longer than sorting out the technology.
Insurers need to act on cyber insurance to gain advantage
Insurance companies can gain an early advantage by acting to offer wider cyber insurance coverage as demand increases. That’s according to a new Insight Report from Timetric called “The Future of Cyber Risk Insurance.” The report notes that demand for specific cyber policies is growing as more businesses acknowledge the risk and realize that commercial general liability and professional indemnity products do not usually cover cyber attacks and data breaches.
The report highlights that insurance policies that cover a broad range of cyber risks may need to be customized for the specific risks of individual business sectors. It also notes the increasing collaboration between insurers and cybersecurity specialists to boost risk management for clients.
