British Airways’ ‘textbook’ crisis offers risk management lessons

British Airways’ ‘textbook’ crisis offers risk management lessons

British Airways’ ‘textbook’ crisis offers risk management lessons

The massive IT systems failure at British Airlines (BA) over the weekend is yet another example of the airline industry’s growing dependency on technology, and clearly highlights the need for organisations to beef up their crisis management resources for critical systems. BA is likely to face a multimillion-pound bill following the two-day global IT systems outage that grounded flights at…

Digitalisation could lead to higher risk appetite for BI supply chain covers

Digitalisation could lead to higher risk appetite for BI supply chain covers

Digitalisation could lead to higher risk appetite for BI supply chain covers

Digitalisation could help companies better manage business interruption (BI) risk and thus lead to increased appetite for BI supply chain covers at risk transfer partners, according to Heike Trilovszky, Munich Re’s German operation head. Lack of historic data, complex interdependencies and the potential for big accumulation of risk mean that BI caused by supply chain disruption remains a challenging area…

RMS questions Sendai Framework that aims to reduce nat cat risk

RMS questions Sendai Framework that aims to reduce nat cat risk

RMS questions Sendai Framework that aims to reduce nat cat risk

Nat cat expert Dr Robert Muir-Wood, chief research officer at RMS, has questioned the metrics behind the Sendai Framework that is used to measure progress on managing natural disasters around the world. With the United Nations (UN) conference on disaster risk reduction starting today, Dr Muir-Wood said important targets set against the Sendai Framework could undermine evidence presented by UN…

Fenchurch Law appoints new associate

Fenchurch Law appoints new associate

Fenchurch Law appoints new associate

UK firm Fenchurch Law, which specialises in complex insurance disputes and works solely for insureds, has appointed Alex Rosenfield as an associate in its professions team. Fenchurch Law said Mr Rosenfield brings experience of property damage, business interruption and professional indemnity claims for professional clients including accountants, solicitors, IFAs and surveyors caught up in claims disputes. Mr Rosenfield joins Fenchurch…

RIMS survey highlights plethora of BI challenges facing insureds

RIMS survey highlights plethora of BI challenges facing insureds

RIMS survey highlights plethora of BI challenges facing insureds

Risk managers have named difficulties quantifying losses as their greatest challenge when handling business interruption (BI) claims. The RIMS Business Interruption Survey 2017 revealed that 58% of risk managers find calculating losses from a business interruption claim the most significant hurdle, followed by 46% that experienced difficulties in providing paperwork to insurers. The survey of 400 RIMS members, conducted in…

Aon’s flagship survey reveals ‘worrisome’ fall in preparedness for leading risks

Aon’s flagship survey reveals ‘worrisome’ fall in preparedness for leading risks

Aon’s flagship survey reveals ‘worrisome’ fall in preparedness for leading risks

European companies’ preparedness for the top 10 risks they face has deteriorated and risk readiness of global firms is at an all time low, according to Aon’s 2017 Global Risk Management Survey. The biannual survey of risk decision-makers across the world named damage to reputation/brand as the number one global risk, followed by economic slowdown and increasing competition. Global preparedness…

London attack to spark further demand for widening terror cover

London attack to spark further demand for widening terror cover

London attack to spark further demand for widening terror cover

Insured losses from the horrific terror attack on central London this week will be small, but the attack is likely to spark a rise in demand for specialist terror and political violence cover, with business interruption (BI) protection top of the list. Tim Davies, co-head of sabotage and terrorism at Lloyd’s insurer Sompo Canopius, told Commercial Risk Europe that sadly this…

Munich Re eyes growth – and threats – in cyber space

Munich Re eyes growth – and threats – in cyber space

Munich Re eyes growth – and threats – in cyber space

Munich Re backpedalled a little on its corporate specialty business last year, but still wants to grow its portfolio in the longer term, especially in cyber space, according to comments made in the global reinsurer’s earnings call with analysts. Board member Torsten Jeworrek told analysts that the €4.8bn premium share from its risk solutions segment was down from €5bn. The…

More progress needed on business interruption coverage

More progress needed on business interruption coverage

More progress needed on business interruption coverage

Progress has been made on business interruption policies in recent years but there remains a long way to go to sort some of the problems that have caused buyers angst, according to experts participating in a roundtable organised by law firm Sedgwick. Calculating sums insured and the claims process remain problematic for many risk managers, while some wordings – particularly…

Progress on CBI but more work needed

Progress on CBI but more work needed

Progress on CBI but more work needed

Contingent business interruption (CBI) insurance has evolved during the past couple of years and insurers are extending coverage to new kinds of risks that can affect companies’ supply chains without causing physical damage, risk managers were told during the 25th Rencontres AMRAE in Deauville, France. However, the costs and scope of coverages remain an issue for buyers as more comprehensive…