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FROM THE EDITOR
Compiled by staff from news and wire services.
They say true pros like a challenge.
Insurance professionals, have we
got one for you: cyber risk.
Let’s leave aside the dizzying
complexity around which
commercial insurance policy a cyber
incident may strike, because you can’t
get into that in less than 500 words.
But before we leave the policy
question aside, let me say that I
attended a RIMS session on cyber.
After Starr Companies’ Shiraz
Saeed got through outlining the
different ways a cyber event can
contort, bust and evade coverage, he
asked if anyone had questions.
No one raised their hand.
Was it because everyone felt
comfortable, and they knew what to
do about cyber risk coverage? Hardly.
Rather, let’s focus on the
importance of a cyber response
plan. Here is where those that like a
challenge can really get into it.
It’s a top-down effort. If you find
your board of directors isn’t keen on
giving the resources needed to craft a
cyber incident response plan, maybe
it’s time to get some fresh blood on
the board; or perhaps it’s time to find
another place to work.
Those companies doing a good
job of preparing their response to a
cyber event use experts to test their
cyber defenses. They’re holding
mock press exercises to prepare their
communications, collaborating across
disciplines to create and test their
response plan and sharing the results
of their defense testing with their
That’s just a handful of what our
experts think are best practices. Risk
managers believe it’s the response
that matters most, because hackers
are always two or three steps ahead.
How about this for an additional
incentive? The deadline for our
annual Risk All Star award is July 6.
Got a cyber incident response
plan you’re really proud of? We’d
love to see it as an award submission.
WORKERS’ COMP LEGEND RETIRES
Christine Baker, instrumental in the
passage of workers’ comp reform
in California, has retired from her
position as director of the Department
of Industrial Relations (DIR). Her
retirement follows a 34-year career
with the state.
Before her tenure at the DIR,
Baker worked for the Commission
on Health, Safety and Workers’
Compensation, which played a large
role in Baker’s time as director. She
brought her knowledge and deep
understanding of California’s workers’
comp system with her.
The WC reform took place in
2012, increasing permanent disability
benefits to injured workers and saving
employers billions in costs. Since its
adoption into law, the workers’ comp
reforms have seen six straight rate cuts.
ALLIANZ BACKS GO-JEK
The Indonesian-based ride-hailing
and local transport services company
Go-Jek now has an ally in Allianz X,
insurer Allianz’s digital investment
arm. Allianz X confirmed a $35 million
deal with Go-Jek, which is also backed
by Google and Tencent and boasts a
value of more than $4.5 billion.
Allianz and Go-Jek have been
partners for two years, with Allianz
Indonesia offering health insurance for
Go-Jek drivers and their families. With
the growing relationship between
the two companies, Allianz Indonesia
intends to increase insurance products
and services for the Go-Jeck partners.
Go-Jek started as a motorbike taxi
on-demand service and grew into
the taxi and private car ridesharing
business. It is like Uber in that it offers
Despite cyber risk, many small businesses
users rideshare services through mobile
and digital payment. What sets this gig
economy service apart is its openness
to using motorbikes in its service.
MARCH BRINGS $3 BILLION HIT
The U.S. economy faced a $3 billion
hit after volatile March weather.
A monthly report, “Impact
Forecasting” from Aon Benfield, which
evaluates the impact of natural disaster
events worldwide, details a series of
winter storms in the U.S. during the
month of March that led to extensive
travel delays and widespread damage.
The U.S. also faced its first major
tornado touchdown in March after 306
days without seeing a sizable twister.
The total combined economic
damage, the report forecasted, was
likely to reach $3 billion. Aon Benfield
estimated two-thirds of the costs would
be covered by insurers.
To the south, both Argentina and
Uruguay reeled from their worst
drought in 30 years, causing severe
damage to their summer crops and
other agriculture efforts. Argentina saw
an estimated $3.4 billion economic
loss. Uruguay anticipated $500 million
economic losses in excess.
SMES LAX ON CYBER COVERAGE
Small businesses know cyber security
is an issue, yet many do not have the
right insurance to protect against
hacking, a data breach, phishing scams
or the like.
Argo Group, an underwriter of
specialty insurance and reinsurance
products, surveyed small and medium-
sized enterprises (SMEs) about their
cyber security perceptions and found
only 40 percent see themselves as a
potential cyber target. Another 20
percent didn’t believe they are a target.
The survey showed that at least two
out of three SMEs experienced a cyber
incident in the last year. Six out of 10
do not have insurance to protect against
cyber attacks, and for the remainder
that do have insurance, 66 percent
admitted their current cyber security
Eighty-one percent of brokers
who responded said that many of
their clients still don’t understand the
significance of cyber threats to a small
business. SMEs named expense as a
deterring factor to purchasing cyber
coverage. Others said the board or
other senior management did not
grasp the value of cyber insurance.
WALMART JOINS HEALTH CARE
Walmart looks to grow its business
through health insurer Humana, and
while it is unlikely the giant retailer
will acquire Humana, there is talk of a
partnership around prescription drug
sales and insurance coverage.
With a shopper demographic
averaging around age 50, Walmart
aims to cater to these shoppers’ needs,
offering products and services in the
pricey health care realm. If the two
companies come to an agreement,
Walmart could open urgent care clinics
inside its existing 4,700 stores.
This marks another large
organization stepping into health
insurance, following CVS Health
acquiring Aetna in 2017; Amazon,
JPMorgan and Berkshire Hathaway
forming their own health care venture;
and Cigna buying Express Scripts
earlier this year.