The average price of insurance for all U.S. businesses remained the same in April 2015 as it was in April 2014, according to the latest analysis from online insurance exchange MarketScout. MarketScout CEO Richard Kerr noted that the market remained flat with a zero percent increase in April 2015, down from a 1.5 percent increase...
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Cyber Losses vs. Property Losses
The financial impact of cyber exposures is close to exceeding those of traditional property, yet companies are reluctant to purchase cyber insurance coverage. These are the striking findings of a new Ponemon Institute survey sponsored by Aon. Companies surveyed estimate that the value of the largest loss (probable maximum loss) that could result from theft...
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How To Insure A $120 Million Horse
The Kentucky Derby is upon us and insurers are more than just spectators at this major sporting event. Bloodstock and equestrian insurance is big business with underwriters who specialize in offering tailored protection for high value animals. Consider the staggering values at stake. A BloombergBusiness article by Mason Levinson tells the tale of American thoroughbred...
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Time to Consider Product Recall Insurance?
The decision by Texas-based Blue Bell Creameries to recall all of its products after two samples of its ice cream tested positive for listeria is a timely reminder of the importance of product recall insurance. Product recalls can be costly and logistically complex. In Blue Bell Creameries’ case the expanded voluntary recall announced Monday night...
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100 Year Event Losses vs. Insurer Estimates
A major hurricane or earthquake hitting a densely populated metropolitan area like Miami or Los Angeles will leave insurers facing losses that far exceed their estimated 100 year probable maximum loss (PML) due to highly concentrated property values, a new report suggests. In its analysis, Karen Clark & Company (KCC) notes that the PMLs that...
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Terrorism Risk and Economic Stability
The April 2013 Boston bombing may have marked the first successful terrorist attack on U.S. soil since the September 11, 2001 tragedy, but terrorism on a global scale is increasing. Yesterday’s attack by the Al-Shabaab terror group at a university in Kenya and a recent attack by gunmen targeting foreign tourists at the Bardo museum...
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West Coast Ports Dispute and Supply Chain Risk
A protracted labor dispute that continues to disrupt operations at U.S. West coast ports underscores the supply chain risk facing global businesses. Disruptions have steadily worsened since October, culminating in a partial shutdown of all 29 West coast ports over the holiday weekend. The Wall Street Journal reports that operations to load and unload cargo vessels...
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What Insurers Can Learn From Errant Forecasts
Most actuaries know about projections that go awry, so we have quite a bit of sympathy for the weather forecasters who missed the mark early this week, says I.I.I.’s Jim Lynch: Weather forecasts have improved dramatically in the past generation, but this storm was odd. Usually a blizzard is huge. On a weather map, it...
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Cyber Value-At-Risk
Measures and methods widely used in the financial services industry to value and quantify risk could be used by organizations to better quantify cyber risks, according to a new framework and report unveiled at the World Economic Forum annual meeting. The framework, called “cyber value-at-risk” requires companies to understand key cyber risks and the dependencies...
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Winter Weather and Cat Losses
With frigid temperatures and snow expected to fall around the New York City area and other parts of the United States this week, it’s a good time to review how winter storms can impact catastrophe losses. For insurers, winter storms are historically very expensive and the third-largest cause of catastrophe losses, behind only hurricanes and...
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