Daily Willis Review | 26th March 2018

Growing cyber threat shows need for vigilance and coverage: A.M. Best
A.M. Best has highlighted the issues faced when determining how evolving cyber security threats will affect premium growth of cyber products.

According to the report, specialty insurance groups in the energy and utility sectors have been exploring areas of profitable but conservative and controlled growth in cyber insurance.

A number of specialty insurers rated by A.M. Best have already partnered with industry leaders to develop cyber products, providing customized and energy industry-specific cyber security coverage ranging from $15 million to $50 million.

Cyberattacks have become a greater threat to the utility sector in the U.S., and a lack of adequate protection against cyber vulnerability can be attributed to the complexity of the power grid system, the report said.

“Currently, past and current trends continue to factor heavily in A.M. Best’s rating assessment of specialty insurers, as they pertain to reserves and capitalization.”

The ratings agency emphasizes that it considers prospective earnings and capital formation before considering upward rating movement for any insurer.

Argo launches wage and hour liability insurance
Argo Insurance Bermuda has launched a new wage and hour (W&H) liability insurance product.

The new product provides employers with defense and indemnity liability coverage for violations of the Fair Labor Standards Act or similar state and federal laws that govern employee compensation.

The W&H insurance is designed for small to midsized U.S. companies within any industry and will be underwritten by the professional lines team in Bermuda.

Sherron Williams, Senior Underwriter at Argo Insurance, said: “Over the past few years, the industry has seen an increase in the number of wage and hour claims filed on behalf of U.S.
employees, particularly on a class or collective-action basis.

“Despite the increase in wage and hour claims, small to midsized businesses in the U.S. are largely underserved for W&H insurance.”

Hamilton Re CUO to lave
Hamilton Re has announced that Claude Lefebvre, Chief Underwriting Officer, Partnerships & Casualty Reinsurance, will be leaving to pursue other interests, Intelligent Insurer has reported.

Mr. Lefebvre was a founding member of Hamilton Re and will remain in his current role until the end of March to facilitate an orderly transition.

Once he leaves Hamilton Re, Mr. Lefebvre has agreed to remain available to the company while completing his gardening leave, the release said.

Kathleen Reardon, Chief Executive Officer, said: “Claude’s role in founding and building Hamilton Re has been meaningful.

“He was instrumental in assisting us in building a market reputation for superior client service.

“Hamilton is grateful for Claude’s many contributions to Hamilton Re over the past six years and we wish him the best in his future endeavors.”

Hannover Life Re partners with GROW Super
Hannover Life Re of Australasia and superannuation fund start-up, GROW Super, have entered into a strategic partnership to explore opportunities to deliver improved customer experiences leveraging blockchain technology.

According to the release, GROW will utilize R3’s blockchain infrastructure for financial services, Corda.

Josh Wilson, Chief Executive Officer of GROW Super, said: “We are very excited to be able to partner with a company as prestigious in insurance as Hannover Re.

“Combining the scale, knowledge and brand of Hannover Re with our innovative technology and unique way of solving problems will deliver fantastic outcomes for customers.”

Gerd Obertopp, Managing Director of Hannover Life Re of Australasia, said: “There are so many inefficient processes and procedures in group insurance that can be overcome using the right technology.”