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Regardless of whether you are the Broker or the Purchaser of a Property Insurance policy, each party will usually understand what the process will involve: - Insured Name, Location, Business Activities conducted at the premises - Identify Building Construction Materials - Identify Fire Protection - Identify Security Protection - Make recommendations on improvements to the Building to get better insurance outcomes prior to approaching Insurers - Set adequate Sums Insured - Collate all the risk information into an attractive package to present to Insurers - Obtain initial multiple options from a range of quality insurers - Review each set of options and then negotiate premiums, sub limits and endorsements/exclusions offered by each individual Insurer based on what is required for the risk exposure - Explain or understand the positives and negatives of each option, depending on which side you’re on, and be comfortable with the decision - Place the policy. So, if you already have a General Insurance Broker, or you are a General Insurance Broker, why would you need to engage a specialist for Cyber Insurance? Because Cyber Insurance, just like Cyber Security, is often conducted in a completely foreign language to other Insurance policies, and Cyber Security is constantly changing. Words like Brick Walls, Fire Extinguishers, Deadlocks and CCTV are usually well understood by the majority of people on either side of the interaction. Terms like RDP, PII, Attack Vectors and Air Gapping are not. The infrastructure and risks you’re dealing with this year, may be completely different next year. A fire extinguisher has remained relatively the same for decades. A brick for centuries. My point is, to be able to place an adequate insurance policy, you must be confident in what you are recommending, and to do that, you need to understand the landscape and languages you are dealing with. If you do not understand Cyber Security, and you don’t have the time to learn it, that is completely fine. But engage a Cyber Insurance Specialist.

As the first day of the Target Markets Program Administrators Association (TMPAA) 2024 Mid-Year event draws to a close, our CEO Layla T. Atya shared some valuable insights from the floor. Please see the details in her post below. Stay tuned for more updates from the TMPAA Mid-Year event, and feel free to share your thoughts and experiences in the comments below. #2024MidYear #TMPAA #insurance #innovation #MGAs

Cyber insurance is a complex product that demands specialized knowledge and expertise. Despite these challenges, it also presents opportunities for profitable expansion and innovation within the insurance sector,

The general insurance market is a crucial component of the overall insurance industry. It covers a wide range of risks faced by individuals and businesses, providing financial protection against unforeseen events such as property damage, liability claims, etc. In recent years, the general insurance sector has been experiencing various trends and challenges that impact businesses significantly. Firstly, there has been a rise in the frequency and severity of natural disasters like hurricanes, floods, and wildfires. These events can cause extensive property damage, leading to increased insurance claims and higher premiums for businesses. Another significant factor affecting the general insurance industry is the evolving cybersecurity landscape. As businesses become more digitalized, the risk of cyberattacks and data breaches has increased substantially. This has prompted insurance companies to offer specific cyber insurance policies, covering losses resulting from cyber incidents. The ever-evolving nature of cyber threats means that businesses need to assess and mitigate their risks to ensure adequate coverage. Additionally, changes in regulatory environments can impact the general insurance market. Stricter regulations imposed by governments may affect premium rates, coverage requirements, and overall market competitiveness, impacting businesses' ability to secure insurance at reasonable terms. On the customer side, businesses are increasingly demanding customized insurance solutions tailored to their specific needs. Insurtech companies are leveraging technology to offer more personalized policies through innovative data analytics and risk assessment tools. This trend is likely to continue, providing businesses with more flexibility and cost-effective insurance options. The COVID-19 pandemic also had a significant impact on the general insurance industry. Business interruption claims soared, as many companies had to shut down or operate at reduced capacity due to lockdown measures. Insurers faced immense pressure to settle claims promptly, leading to discussions around policy wordings and coverage disputes. Overall, the current state of general insurance presents both challenges and opportunities for businesses. While the increasing frequency of motor accidents, fire ,natural disasters and cyber risk can lead to higher premiums, businesses can benefit from more tailored insurance products and solutions. Given the dynamic nature of the industry and the ever-changing risk landscape, it is crucial for businesses to stay informed and work closely with insurance providers to ensure adequate coverage for their operations.

6 Advantages of High-Net-Worth Insurance... High net worth insurance (HNWI) is designed specifically for individuals with substantial assets, offering tailored coverage that goes beyond standard insurance policies. Here are some advantages of high-net-worth insurance 1. Comprehensive Coverage Broader Protection: HNWI policies typically cover a wider range of risks, including high-value homes, luxury vehicles, fine art, jewelry, and other valuable possessions. Worldwide Coverage: Often includes global protection, ensuring assets and liabilities are covered no matter where they are located or where incidents occur. 2. Higher Coverage Limits Sufficient Limits for High-Value Assets: Standard policies may not provide adequate coverage for high-value items. HNWI policies offer higher limits, ensuring full protection of expensive assets. Umbrella Liability: Enhanced liability coverage that goes beyond what standard policies offer, protecting against large claims or lawsuits. 3. Tailored Policies Customizable Plans: These policies are often bespoke, allowing clients to tailor coverage to their specific needs, from insuring unique items to covering specific risks. Risk Assessment Services: Insurers often provide personalized risk management services, including home safety evaluations, security advice, and loss prevention strategies. 4. Exceptional Claims Service Priority Handling: Claims are often handled more swiftly and efficiently, with dedicated claims adjusters who specialize in high-value claims. 5. Lifestyle Coverage Travel and Vacation Homes: Coverage for second homes, vacation properties, and travel-related risks. Cybersecurity: Protection against cyber threats, identity theft, and other digital risks, which are increasingly important for wealthy individuals. 6. Personalized Service Clients often receive personalized service from dedicated account managers who understand their unique needs and can offer tailored advice.   Overall, high net worth insurance offers a level of protection and service that aligns with the complex needs of affluent individuals, providing peace of mind.

It is the time for Target Markets Program Administrators Association (TMPAA) 2024 Mid-Year event. And here are my Day 1 observations: 1. Cyber Insurance Dynamics Most Managing General Agents (MGAs) specializing in cyber insurance are actively seeking capacity. A notable trend among the MGAs present at the event is their robust endpoint monitoring capabilities, which are essential for real-time cyber underwriting. This advancement highlights a shift towards more dynamic and responsive underwriting processes that can better manage the risks associated with cyber threats. Despite the overall growth in the cyber insurance sector, there remains a cautious approach to coverage limits. Many providers are focusing on offering excess insurance, which has traditionally been profitable due to smaller limits and the bulk of the risk being borne by primary carriers. Interestingly, collaborations with large Managed Security Service Providers (MSSPs) have not yielded the expected financial outcomes. 2. Challenges for Established MGAs Established MGAs are facing significant challenges in acquiring additional capacity, highlighting a broader issue within the insurance industry regarding the flow of capital. The need for alternative capital solutions is becoming increasingly apparent, and there is a clear call to action for those interested in innovative approaches to capital management in the insurance sector. 3. Capacity Providers: Opportunity and Caution There is no shortage of capital among capacity providers, who are eager to find new insurance programs. These providers are looking for opportunities that require minimal effort on their part but expect potential insurance partners to demonstrate both solvency and the ability to scale effectively. The cautionary tale of “insurtechs” that failed to deliver despite substantial investments serves as a reminder of the importance of traditional underwriting practices. The past experiences of significant non-renewals by A/E carriers due to poor underwriting and inadequate pricing further emphasize the need for a conservative and disciplined approach to underwriting. I ahve been working closely with companies on both ends of the tail. Feel free to reach out during the event or here to discuss how Zala for Insurtech Innovation can help address these challenges!

Hey, everyone....cyber is NOT something to be taken lightly (see forwarded post from Kurtis Suhs). Most policies are written to exclude bad foreign agents, who are the vast majority of violators. Your Captive Insurance Company can write policies to cover these holes in coverages and EXPAND the breadth and width of them, AND, if you have reasonable claims, YOU can reap the rewards of your good claims history by keeping your premiums....not the insurance companies. If you want to know more about how Captives can work for you and your business, happy to have a conversation. Stay safe out there! #CPA #CFO #riskmanagement #insurance #business #finance #financialmanagement #advisor #financialadvisor #interimCFO #insuranceagent #broker

In 2001, I was the Chief Distribution Officer for Nationwide Financial Services (Bermuda) Ltd. and was down in Miami to present to a group of private bankers serving LATAM. The plan was to get the group excited about my U.S.-style life insurance products issued from Bermuda that were for their LATAM clients. First, though, a wholesaler from Hiscox presented. He was a visibly tough guy who was fromer Army CID (like NCIS) and he launched into a frightening presentation about all the things that could happen if you are kidnapped and do not have proper coverage. "How would you like to open a box with your child's arm in it?!" 😨 It was like when Edward Scissorshands went to show-and-tell and the class thought it was so cool. When it was my time to present, the group was riled up (and terrified) and I couldn't do much better than, "Yeah, if your clients buy my life insurance, when they die, their families will get money." I learned my lesson to never present with a Kidnap and Ransom rep as I have yet to see life insurance reach that level of crowd engagement! ("Do you like having both of your eyeballs?! Then you need K&R!!) Here is some news related to this: Global specialist insurer Hiscox has today announced the launch of a new Personnel Security Plus product. Designed to complement an existing Hiscox Kidnap and Ransom insurance policy, Personnel Security Plus provides businesses with additional protection for their employees who are becoming increasingly vulnerable to a wide range of risks. The policy covers 22 different and diverse perils including workplace violence, cyber stalking, abduction, bribery, blackmail, social engineering, and acts of terrorism. With Personnel Security Plus, businesses will have access to specialist global risk consultancy, Control Risks, who can provide pre-event threat assessment and evaluation, as well as recovery and post-incident support and advice. This is accessed through Control Risks' state-of-the-art 24/7 Global Risk and Operations Centre. Depending on the type of risk and broader circumstances, policyholders can also benefit from the immediate deployment of a Control Risks crisis management expert to their location to help manage the incident on-the-ground. Stuart Allen, Kidnap and Ransom Line Underwriter for Hiscox, commented: "It's not just in unstable parts of the world where employee safeguarding can be a challenge, but in countries and regions where you might not expect to experience security issues like cyber stalking, workplace violence or terrorism. Personnel Security Plus will help employers respond to crises involving their employees wherever they are in the world; helping to keep them safe, while effectively carrying out their duty of care as an employer." #KidnapAndRansom #lifeinsurance

Union Risk Services July 2024 Insurance Market Update Welcome to Union Risk’s July Newsletter! As we progress through 2024, we want to provide you with an update on the current insurance market and key trends that may impact your business. Market Conditions The insurance industry continues to navigate a challenging landscape marked by evolving risks and economic pressures. Despite these challenges, there are opportunities for growth and strategic advantage, particularly for those exploring alternative risk solutions like captive insurance. Premium Trends Overall, we are observing a stabilization in premium rates across various sectors. However, certain industries, such as construction and transportation, continue to experience upward pressure due to heightened claims activity and regulatory changes. Our focus remains on helping you mitigate these cost increases through tailored risk management strategies and innovative insurance solutions. Regulatory Developments New regulatory frameworks aimed at enhancing transparency and accountability within the insurance sector are being introduced. Staying compliant with these regulations is crucial, and we are here to guide you through any changes that may affect your coverage and risk management practices. Captive Insurance Growth Captive insurance continues to gain traction as businesses seek more control over their risk management and insurance costs. By creating a captive, companies can benefit from lower premiums, improved cash flow, and greater customization of their insurance programs. This trend is particularly strong in industries with high-risk profiles, such as manufacturing, construction, and transportation. Emerging Risks Cybersecurity remains a top concern for many businesses, with cyber insurance premiums reflecting the increasing frequency and severity of attacks. We recommend reviewing your cyber risk management practices and ensuring your coverage is adequate to protect against potential threats. Climate change is also influencing the market, with insurers adjusting their models to account for more frequent and severe weather events. Companies should consider proactive measures to mitigate these risks and explore insurance solutions that address their specific exposures. Our Commitment At Union Risk Services, we are committed to helping you navigate the complexities of the insurance market. Our expertise in captive insurance and alternative risk strategies allows us to provide you with customized solutions that enhance your risk management and financial performance. We encourage you to reach out to our team to discuss how we can support your business in optimizing your insurance program. Together, we can turn challenges into opportunities and ensure your company is well-positioned for future success. Thank you for your continued trust in Union Risk Services. #insurance #captiveinsurance #riskmanagement

The insurance broker, Marsh, stated that as of Friday more than 75 clients had notified their cyber insurers of potential business interruption claims relating to the CrowdStrike software glitch. Today, Delta Airline's CEO stated that 3,500 flights were canceled last Friday. Delta Airlines has cancelled additional flights for the third straight day as it struggles to recover. According to the Marsh U.S. Cyber Purchasing Trends, 24% of their clients with $10B in revenue or greater have purchased higher cyber insurance limits over the past year. 26% of those surveyed reduced their self insured retention due to the softening market. Here's some numbers to ponder: Many large enterprise organizations maintain cyber insurance limits between $100 Million and $500 Million in aggregate limits. Crowd Strike has 28,000 clients. - If 10% or 2,800 of CrowdStrike's enterprise clients tender a cyber insurance claim, each for $10 million, that translates to $28 Billion. - If 10% or 2,800 of CrowdStrike's enterprise clients tender a cyber insurance claim, each for $100 million, that translates to $280 Billion. - If 50% or 14,000 of CrowdStrike's enterprise clients tender a cyber insurance claim, each for $10 million, that translates to $140 Billion. - If 50% or 14,000 of CrowdStrike's enterprise clients tender a cyber insurance claim, each for $100 million, that's $1.4 Trillion. Will this software glitch harden the cyber insurance market? #ConciergeCyber