Daily Market Update
Digital dangers are still underestimated
Cybercrime continues to rise rapidly in the ranking of disruptive scenarios, according to new research from Allianz. In the United States, UK and Germany cyber risks are now among the top three corporate risks. Although awareness of these risks is increasing, many companies are still underestimating the severity of the various impacts. The full report is available from today at Allianz.com
Reaction to Obama signing terrorism insurance act
President Obama signed the renewed act to protect insurance companies from potentially devastating losses from a terrorist attack on Monday. The Terrorism Risk Reauthorization Act of 2015 comes with some changes, most notably the level at which the program is triggered will be raised to an eventual $200 million, double the previous amount. Leigh Ann Pusey, president and CEO of the American Insurance Association said: “A well-functioning private terrorism insurance marketplace has been preserved because Congress and the Administration made TRIA’s reauthorization an immediate priority. The program, which has overwhelming bipartisan support, will continue to protect our nation’s economy against major acts of terrorism. AIA thanks Congressional leadership and the Administration for moving so quickly to reauthorize TRIA.”
Natural catastrophe insurance losses hit five-year low
A new report reveals that 258 separate global natural disasters occurred in 2014, compared to a ten-year average of 260, causing a combined total insured loss of USD39 billion. That’s 38 percent below the ten-year average of US $63 billion, and the lowest annual insured loss total since 2009. The Annual Global Climate and Catastrophe Report from AON Benfield’s Impact Forecasting team also highlights that despite 75 percent of 2014 natural disaster losses occurring outside of the United States, the territory accounted for 53 percent of global insured losses, driven by its relatively high insurance penetration. The top ten insured loss events of 2014 comprised five severe weather outbreaks (four in the U.S.), two winter weather events (Japan and the U.S.), Hurricane Odile (Mexico), flooding (United Kingdom), and drought (U.S.).
by Insurance Business | Jan 14, 2015