Insurable Interest Canadian Insurance Blog

Data breaches, attacks on critical infrastructure or physical assets and increased ransomware attacks drive cyber concerns (36% of responses) Business interruption remains #2 with 31% of responses. Natural catastrophes is the biggest riser compared to 2023 with 26% in #3 Risk perception differs regionally for climate change, political risks and violence, and shortage of skilled workforce Munich (Jan. 16, 2024) – Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of Business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), Fire, explosion (up from #9 to #6), and Political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3,000 risk management professionals. Allianz Commercial CEO Petros Papanikolaou comments on the findings: “The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks...

A 2024 ICTA nomination Toronto, ON (Jan. 19, 2024) – Cyber risk is a concern of virtually all organizations, posing an existential threat to millions of them. Data theft, denial of service, data encryption and other incidents can all result in significant first-party financial loss and third-party liability. Compounding this challenge is the dynamic nature of cyber – the risk is evolving constantly, and traditional, siloed forms of risk transfer are unable to keep pace. Organizations’ IT security and risk management teams need help keeping up; they require greater cyber risk visibility, a plan to improve security practices, and cyber insurance that matches their organizational needs. The Resilience Solution provides an efficient way to achieve all three, delivering advanced cyber risk visibility and actionable cyber hygiene with accountable cyber insurance. As an integrated solution that brings together risk managers, IT security, and financial leaders together to manage cyber risk in one place, The Resilience Solution excels at cyber risk identification, risk assessment, risk control and risk financing. The Solution is available in three package levels that surpass what companies can currently obtain elsewhere in the cyber marketplace, and additional enhanced features are also available. The solution’s Essential package features include:...

A 2024 ICTA nomination Toronto, ON (Jan. 19, 2024) – Brickeye delivers innovation in risk mitigation solutions at the intersection of technology, construction, and insurance. The company’s Construction Risk Mitigation Platform integrates state-of-the-art IoT sensors, reliable job site connectivity, and advanced cloud-based software and analytics – delivering actionable alerts and intelligent automated risk controls, providing comprehensive protection from water damage incidents and claims on building construction projects for both insureds and insurers. The business use of the technology within the insurance market is twofold: First, in preconstruction, before going to markets, Brickeye works with insureds and brokers to help de-risk building projects through the development of technology-enabled water mitigation plans. These plans, together with a Brickeye-issued Certificate of Protection (CoP), are included by brokers as part of the application package for placement of Builders Risk and Wrap Up Liability policies. Brickeye’s project-specific plans provide underwriters and risk engineers with a detailed understanding of the risk controls being put in place by the insured during construction – together with a corresponding water response plan outlining the alerts and automations (e.g. valve shut-off) that are initiated in the event of a water incident. These tools, and the analytics behind them, help insurers...

Start Slideshow The landmark retirement reform legislation referred to as the Secure 2.0 Act, short for the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022, just celebrated its first birthday. With that, the financial advisor community remains hard at work digesting its nearly 100 individual provisions. The significant challenge is evident in the “latest developments” section of ALM’s Tax Facts library. The regularly updated section includes some 70 entries discussing the tax implications of Secure 2.0 alone. While every provision won’t affect each client, the broad scope of the law means that many clients will see the tax treatment of their retirement savings and investments altered in the years ahead. For example, some wealthier clients may find themselves being forced to make catch-up contributions to a Roth individual retirement account in place of a traditional IRA. Younger clients may find they can now pay down student loan debt while also receiving tax-advantaged matching contributions into their 401(k). To be clear, advisors say many Secure 2.0 Act provisions represent positive developments for their retirement-focused clients, but the challenge of mastering all the changes is a significant one. See the accompanying slideshow for a sample of the Secure 2.0 Act...

Start Slideshow The post-pandemic recovery has been anything but smooth, leaving many Americans anxious about their finances and prompting them to look to financial professionals for advice. However, the industry is experiencing a crisis in recruiting and retaining new blood. Need for Advice Advice seekers have varying needs, depending on levels of wealth and demographics. High-net-worth practices are increasing investment service offerings as clients clamor for alternatives, and expanding their planning services as families prepare for wealth transfers and transitions.  Many younger wealthy investors are switching advisors because they need one with different or specific expertise. They also prefer to work with advisors who have diverse teams and track records of helping women, business owners and minorities, and offer remote services. Women bring particular factors to the advice relationship that can make financial planning different for them. They shoulder the majority of caregiving, which can negatively affect their career, savings potential and mental health; they live longer in retirement; and they often lack a firm idea of their potential health care costs. Black and Hispanic Americans, who are increasingly engaging with advisors, require a holistic approach by financial professionals. They want to discuss big, unexpected expenses, how the high cost...

Asia Pacific region will see the fastest growth; six countries forecasted to have the largest GDP growth are in Asia Cambridge, MA (Jan. 18, 2023) – Forrester’s Global Tech Market Forecast 2023-2027 reveals that as economic conditions continue to improve, technology spend will grow 5.3% in 2024 — up from 3.5% in 2023. Two factors will primarily contribute to this growth: Increased spending on software and IT services, including generative AI (genAI), cloud, security, and digital, and economic growth in Asia Pacific. By 2027, software and IT services will capture 69% of global tech spend, with investments in genAI software predicted to reach $227 billion by 2030 at a 36% compound annual growth rate. Asian countries, especially India, the Philippines, Vietnam, Indonesia, Malaysia, and China, will see the fastest tech spend growth in 2024. Global tech spend is expected to reach $4.7 trillion in 2024, with growth occurring across all regions: Asia Pacific will grow 5.7%. India is one of the largest exporters of technology services: IT exports will reach $194 billion in 2023, and total technology and service industry revenues could reach $350 billion by 2025. North America will grow 5.4%. Software and IT services will capture 60% of...