Insurance Policies Expand in Response to Cyber Attacks

Insurance company Tryg has predicted that 90% of its corporate customers will have to buy cyber-crime insurance in the next five years to protect their restricted data and valuable IT systems against hackers. Over the last year, several accounts of cyber-attacks hitting a vast number of large international organisations have been recorded; the most renowned incident being the WannaCry ransomware attack back in May that affected more than 300,000 computer systems worldwide.

Since the infamous attack, Tryg, Denmark’s largest insurer, has sold over 5,000 cyber-crime insurance policies since launching its assistance in data and systems restoration; astounding figures that are set to rise across as the number of insurance brokers who offer this type of protection increases to meet the demand. It, therefore, comes as no surprise that cyber insurance is becoming one of the fastest growing sectors of the industry, with it being worth an estimated £15 billion per year internationally by the year 2025.

Tryg’s Chief Executive, Morten Hubbe, stated: “There are no corporate clients today that don’t have insurance on their buildings or cars, but I think that within a few years it will be just as evident that you should insure against cyber-crime.”

In response to the latest influx of cyber-attacks, the UK financial regulator expressed their concerns about the impact of coordinated large-scale attacks on organisations to express sensitive data. They have urged insurers to conduct stress tests to figure out where organisations are most vulnerable to cyber-crime. However, many insurers have highlighted the difficulty in accessing enough data to provide an accurate representation of the risks of cyber threats, as well as the financial consequence of large-scale attacks that can potentially affect a number of businesses, especially if they are connected via the same network. Ultimately, this will affect how insurance brokers mould their insurance packages and their associated costs.

However, The Prudential Regulation Authority (PRA) announced a set of rules that insurers are expected to follow when dealing with cyber threats, asking for board-level oversight of cyber exposure to be implemented. The expectation is that insurers will complete routine stress tests to analyse and plan for what would happen if a vast number of cyber claims were to be placed at the same time. The PRA also touched on the matter of non-affirmative risk, a lesser-known aspect of a cyber threat, where regular insurance policies cover such specialist areas, sometimes unknowingly to the insurance broker themselves. The expectation of insurance brokers to be clear on what elements of cyber risks are covered in their policies, including their regular ones – where premiums are adjusted to reflect this type of cover.

The stark reality is that UK businesses are currently unprepared for the threats posed by cyber-attacks, and many organisations are unintentionally skipping this important area of insurance coverage. The implications, however, of the relatively new but expanding risk of cyber-attacks means that there will be a wide range of cover policies available on the market with varying associated costs. It is, therefore, important for businesses to find a cost-effective insurance coverage that best suits the needs and structure of their business but also reflects the evolution of cyber-attacks. This is where business cost management companies, such as ourselves, are particularly useful for businesses.

We have a number specialist insurance consultants who will be able to help your business source and compare specialist cover and provide you with independent advice on which insurance package will best cover you against cyber-crime, as well as ticking other necessary boxes. Get in touch with us today to find out how we can help you.

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China waste quality drive impacts recyclables commodity prices

China, the world’s largest recycler of waste paper, has announced that it is totally banning the import of 24 waste streams including unsorted mixed papers and mixed plastics. 1.1 million tonnes of mixed paper are imported to China from the UK each year.

The Chinese government had already been campaigning to block imports of illegal and low-quality waste under a crackdown called Operation Green Fence launched in 2013. However, this latest move bans certain wastes outright.

As the second largest importer of goods in the world (behind the USA), China’s announcements have sent shock waves through the waste commodity market. Our waste team has already been advised by suppliers that prices paid for mixed papers are falling.

The move by Beijing is due to a crackdown on “foreign garbage” and environmental pollution, including unsorted scrap paper. The United States, whom along with Japan are one of the biggest exporters of waste to China, has already seen the price paid for old corrugated cardboard drop. This is also predicted to be imitated in the UK.

The effect is also being felt in the price for raw materials – our packaging team reported on the 2nd October that packaging prices were rising – recovered cardboard prices in China have nearly doubled as demand increases.

Many clients are turning to us for advice on what is a volatile market at the moment.

For more information please contact us.

Article by: Dan Howells

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Price comparison site ParcelHero suggests Royal Mail strike could cause Christmas disruption

Royal Mail workers have voted to strike over changes to their pension arrangements.

This strike could be very costly to all parties, including the Royal Mail. Having become very aggressive in the parcels space, Royal Mail will potentially push customers toward the competition.

Companies and the general public will need to make contingency arrangements, just in case.

Read the full story over at Courier News.

For more information on how we may be able to make improvements and save money on your parcel and carrier costs, please contact us.

Article by: Charles Reid

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MyHermes add ‘estimated time of arrival’ technology

It’s good to see more carriers adopting the type of ‘estimated time of arrival’ technology that my Hermes have just announced.

Pioneered by DPD a few years ago, this has been proven to free up time as well as ultimately giving the consumer a more convenient service.

Read the full story at Courier News.

For more information on how we may be able to make improvements and save money on your parcel and carrier costs, please contact us.

Article by: Charles Reid

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How to Secure the Best Business Insurance Policies

For any business, regardless of its size and budgets, the importance of having the right insurance package is essential in protecting the interests of the organisation. Cost-effective insurance can have a huge impact on the management, processes and the result of any implications in the business journey. However, many business owners or decision-makers may, at times, feel overwhelmed by all the viable insurance options. This can make picking a suitable insurance package difficult, but knowing the process of selecting outstanding and comprehensive business insurance can ensure your company is covered sufficiently.


Consider All the Benefits

Do not buy an insurance package on price alone. Whilst price can be an attractive selling point of some insurance policies; the reality is that cheaper packages will not cover everything your business needs. The services, benefits and legal terms should all factor heavily in your decision in order to make it a cost-effective purchase.


Be Aware of the Legal Terms

Many decision-makers may be unaware that buying insurance policies are legal purchases that usually come with a 120-page booklet filled with varying terms and conditions to agree to. It is therefore essential that you are happy with all the terms and conditions of the contract in case you need to claim on your insurance in the future.


Get an Independent Review

Regardless of how long you have conducted business with your insurance broker for, it is imperative that you receive an independent review of your general insurance and risk management arrangements. Whilst your insurance brokers may be claiming to offer you the best services at premium rates, chances are your business could be better off at an alternative company. Comparing insurance quotes on price and services alone is simply not enough to give you a clear indication of how the policy will work for your business, thus highlighting the importance of securing independent reviews.

Additionally, as your business evolves, your objectives will naturally evolve too. Over time, the marketplace adapts to environmental changes which means your business, and in some cases, your insurance cover will also have to adjust. Some insurance companies may be reluctant to intuitively change the design of your insurance package as your business expands because it can conflict with previous recommendations and quote pricing, which may result in them losing your business. It is therefore vital that you review your insurance regularly to ensure you are getting the best deal for your money.


What is Involved in an Independent Review?

Specialists will independently review a plethora of insurance packages on the market that would be suitable for your organisation. The expert team at Expense Reduction Analysts eliminate any obstacles in place that are stopping your business from securing the best insurance package. We conduct confidential searches designed to meet your specific requirements, whilst using our cost reduction techniques, to ensure you have all the options to make a smart and cost-effective choice.


How Do I Source an Independent Review?

If you want to ensure your business is implementing the best insurance packages for your individual needs, get in touch with our specialists today. We can provide you with an independent review and indicate insurance areas where you can save money. Our insurance and risk management reviews embody a number of commercial and specialist insurance areas, such as property, business interruption, liability and professional indemnity, to name but a few.


Our specialists can even deal with projects where there is a specific requirement or procedure to be followed and needs a specialist type of insurance coverage. We have worked with a number of big organisations to ensure their insurance policies are performing for them, and we would be delighted to work with your business too.

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