Cyber Risks Talk - 29 September 2015

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Written by Mark Wood, Tokra Consulting Limited on 6th October 2015.

On Tuesday 29th September, AirSP was lucky enough to host a presentation from Anna Bender, Associate Director in the Insurance Division of Fitch Ratings, London, which both provided insight and provoked debate on the topic of cyber risk and insurers’ exposure to it.

With the event taking place at The Broker’s Wine Bar in Leadenhall Market, it is fair to say that – as with other such events held by AirSP – the approach taken was much more “user friendly” than some others in the market as the talk was not simply a lecture on Fitch’s views. Anna involved everyone present in a discussion about the issue of cyber risk and how it needs to be considered and addressed by people, organisations, the insurance and reinsurance market and government. These discussions did, of course, continue when everyone who stayed on moved down to the bar afterwards!

The presentation was based on Fitch’s report “The rise of cyber insurance” and covered the following areas:

  • A growth opportunity: the role of cyber insurance, the impact of public and private awareness and of government legislation;

  • The risks: credit risks (from a rating perspective), high aggregation risk, limited reinsurance availability, expertise requirements, modelling capabilities and issues and insurers becoming targets.

I would be pleased to share that with anyone who would like to read it in full – just contact me at This email address is being protected from spambots. You need JavaScript enabled to view it.. Don’t panic, it is only 7 pages.

From my perspective as a member of AirSP, I believe the key points that arose from the discussion revolve around the two key questions that Anna asked us:

  1. Do you think cyber insurance is mainly…

  1. … a major opportunity for (re)insurance companies [modelling this type of risk will improve and give clients and insurers more confidence in writing this type of risk profitably.]

  2. … a substantial risk to (re)insurers’ reputation and balance sheet [Loss/data statistics and general understanding of the particular risks remain limited, which makes cyber risks almost impossible to price. Underwriting this type of risk is an accident waiting to happen. There is no good coming out of this for the insurance industry.]

More people in the room seemed to react more to the “risk” element than any “opportunity”, although from an AirSP member’s perspective I guess both could be true.

What sparked debate amongst those present was how the nature of cyber risk has evolved, such that insurers and reinsurers (as well as insureds) did not necessarily know exactly what they expected policies to cover or to exclude! As a result, loose wordings had resulted in some unexpected consequences, although some would say there’s nothing new in that.

2. Who do you think should lead in promoting cyber protection /consultation / education and best practice?

  1. Governments [because it would ensure that rules are applied (and enforced) consistently across industries.]

  2. Insurance companies [because they have a direct financial interest in getting it right. It can also create an incentive to insureds to improve their cyber resilience in order to obtain a lower premium.]

  3. Brokers [because they know best what their clients need. This would ensure a more tailor-made approach to cyber protection.]

  4. Cyber Security / IT Specialists [because they have the most comprehensive knowledge of cyber threats.]

Having spoken to Anna on the night and subsequently, there appears to be a varied opinion as to the answer to this question depending upon the audience. With ours, whilst there were people voting for all of the options, the majority were very much in favour of option D. Was that just a natural response from the members present that, as specialist service providers, simply viewed the issue from that perspective? From the lively discussion, I don’t believe that to be the case but it would be interesting to hear the reasoning of other audiences that had reached different conclusions.

I would just like to conclude by thanking those responsible for arranging these talks for us and, to any of you who have yet to attend such events, a recommendation to do so – along with a chance to network with others in the market, you can obtain invaluable insight about and get to discuss some very interesting topics.


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What more could one want on a lovely autumn evening in Monte Carlo than a good dinner in the company of nice people with, and with whose help, one was hoping to do good business? That is what AirSP Members who attended the Annual Dinner at the Quai des Artistes on Monday 14 September got!

The Rendezvous de Septembre is always an invigorating mixture of serious discussions and pleasant socialising. To a degree, the latter creates or helps to create the former. People who are often too busy with immediate business at work have time to reach out, think more broadly and explore new possibilities. AirSP exists to help its Members take advantage of that, and indeed to do that themselves.

Our numbers were up on last year (partly because the dinner price had been held at the same level!). Both the meal and the company were excellent. Attendees covered the usual whole range of AirSP Members, from actuaries through lawyers, run-off experts, analysts, loss adjusters and brokers. There was new thinking about what was happening in the world of insurance and reinsurance, allied with good contacts and the exchange of names for further good contacts. Equally importantly, a great time was had by all.

The Association, judged by this dinner, is in great shape. It is growing, it is vibrant, and its Members work together well. I urge you all to recruit new Members into this encouraging, growing and productive mix.

Bill Perry


Insurance Act 2015 Summary

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Members can access by Insurance Act 2015 summary by logging into the site.

Insurance Act 2015 Talk - 12 May 2015

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One of AirSP’s objectives is to keep its members up-to-date with developments in the law and the market as they happen. We were therefore delighted to have Charlotte Waters, of Fisher Scoggins Waters, talk to AirSP on 12 May about the Insurance Act 2015.

Members can access the Insurance Act summary, featured in the News Articles, by logging into the site.


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Martin Kanwar, Managing Partner of Swiss Advisors REFOCUS LLC and AirSp member participated at our AirSp Board Meeting on 26 May in London followed by a discussion about regulatory challenges faced by Insurance, Reinsurance, Captives and Run-Off carriers in Germany, Switzerland and Liechtenstein. Complex and business sensitive areas (internal model, model application with regulator) are often dealt with by the companies internally or with strategic partners. However, a number of hands-on drafting, documenting and updating of internal policies and guidelines (System of Governance area - Pillar II) - are often outsourced or carried out with specialized practitioners. An area where we see good opportunities for AirSp members.

Since 2010 REFOCUS LLC, Zurich, has focused on Solvency II / Pillar II topics (Governance, Audit, Risk Management, Compliance) and is happy to support any efforts from AirSp colleagues following the same route and combine forces. CLICK HERE to download document.

City Corporation Talk - 28 April 2015

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Following the Board Meeting on 28th April, those of us able to attend the talk by John Chapman, the Deputy for the Ward of Langbourn of the City of London, were treated to a short, but truly fascinating, insight into the Corporation of London. To hear, at first hand, how these elected representatives of the different Wards give so much time (for no fee!) to promoting the City both here and abroad was inspiring.

Afterwards, it was great to meet new people over a drink and exchange views. We look forward to seeing as many of you as possible at our next event and, remember, members are most welcome to bring guests.


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Members can access the AGM summary by logging into the site.

Whisky Tasting Charitable Event - 3 December 2014

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Where would anyone rather be on chilly winters evening after work? Well for about 20 or so industry guys on 3rd December, AirSP members and their guests, were privileged and honoured to be the guest of The Balvenie Ambassador to the UK. Our host clearly lived up to his reputation as a global expert on whisky with the depth of his knowledge. Those thinking Whisky was just something that granddad had after arguing with grandmother was proved completely wrong. It is a growing drink savoured by men and women from the four corners of the earth. Our group was joined by Americans and, of course, the prohibition years were discussed along with the keen interest amongst Italians to work out how to get the bottles back home. Learning about the history of “scotch on the rocks” and a “shot” was extremely interesting.

During a thrilling evening, where I can honestly say everyone gained so much knowledge of this specialist area, it would be doing an injustice to the beauty of whisky without first mentioning how one bottle can bring so many pleasures. We were taught the wonderful way of calculating how much water is required to change the nourishing fruity flavours of cinnamon and nutmeg pleasures. We appreciated the full beauty of how changes to our pallet tastes can be brought alive by sampling a range of whiskies and by adding just a few drops of water can bring about an entirely different taste. This, of course, was a personal choice for the market leading practitioners and no doubt everyone will return again next year for another drag.

A really good evening in good causes, plenty of very special malts. If you did not attend you really missed out on a great event.

Board Meeting - 30 October 2014

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After a lively Board Meeting discussing the Monte Carlo dinner, the final event of 2014 - Our Whisky Tasting Evening being held to raise money for charity and planning the Association's 2015 events schedule, the Board Members looked forward to sharing their thoughts and plans with Members over a glass of vino or lemonade.  The list of events is growing in number and should be published, albeit with some provisional dates, early in the New Year.

Monte Carlo Rendezvous

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“AIRSP Members and guests gather in Monte Carlo

Members and guests met at the Quai des Artistes for the flagship gathering of AIRSP at the Monte Carlo Reinsurance Rendezvous. It was a convivial and well attended affair and everyone enjoyed the excellent food and wine. Our guests included friends from many countries and representatives from the Underwriting, Broking and Legal professions, as well as Experts from the Insurance and Reinsurance communities. We were well represented internationally, with attendees from Russia, Italy, the Netherlands, Belgium and the UK.

Bill Perry, Chairman of AIRSP said “The Monte Carlo dinner has always been a great event and 2014 proved no exception! Both the Insurance and Reinsurance communities were well represented and our Members and their guests had a most enjoyable evening. The Insurance and Reinsurance worlds were pretty well dissected during the evening!”

The Board of AIRSP wish to thank the staff and Management at the Quai des Artistes and everyone who organised this successful evening.”