London resilience threatened by its reliance

It has been a mixed week for those in the London market, writes Jon Guy.

Insurance will always be an industry of winners and losers from individual companies to the markets which continue to compete for regional or global supremacy.

For over 300 years London has been seen as the home of insurance. From the early days of Lloyd’s the market has wrestled with the emerging markets of Singapore, Hong Kong, and Shanghai.

London prides itself as the home to the risks that cannot be placed elsewhere, and as the home of innovation.

We live in a time of truly emerging risks from cyber to climate, from supply chains to geopolitical threats. All have driven a spike in demands and have tested the industry’s reputation.

However, the hardening (re)insurance cycle has seen the London company market deliver a 20% leap in premium income as the impact of COVID looks to have had little effect.

Not only have premiums increased but the IUA reported there has also been a tangible shift by some companies of business that had traditionally been placed in Lloyd’s over to their company stamp.

While the  IUA say it is a trend that has become increasingly visible over the past 12 months, Lloyd’s says it is in robust shape and its decile 10 efforts to ensure the departure of poorly performing business is continuing.

Brexit has hit the market, with the IUA saying that  the level of business the company market sees has fallen from £8.87 billion in 2018 to £5.16 billion last year.

The build up to the UK’s departure saw several European centres working hard to establish themselves as the European Union’s standout financial centre. Despite their best intentions the establishments of European subsidiaries has been scattergun across several jurisdictions leaving none as a clear leader for underwriting expertise.

Technology continues to vex the market. This week the Financial Conduct Authority (FCA) issued a scathing report in which it expressed seriously concerns over the systemic risk posed by the concentration of London market brokers and underwriters being based on the same technology platform. The regulator warned that should there be a cyber attack on one of the major software houses large parts of the London market would be severely impacted.

While the regulator’s concern at present may be viewed as harsh, the move towards digital trading may exacerbate the future risks.

There are still some concerns over the pace of delivery around the Lloyd’s blueprint for the future, on which the digital transformation of the London market will be predicated.

It is also the programme on which the market has hung its hat, and after decades of failed technology initiatives across EC3, some would say it very future.

London has shown its resilience through three centuries of risk and global catastrophe and has seen off the challenges from those centres which would  seek to establish themselves as the global leader.

COVID has driven digitalisation to levels which would have taken years without the impetus of social distancing regulations and the need to move to remote operation.

The need for process reform has been recognised in the market for over a quarter of a century when Lloyd’s looked to the implementation of EPL systems.

Is its biggest future threat to London set to be of its own making?

Technology continues to vex the market. This week the Financial Conduct Authority (FCA) issued a scathing report in which it expressed seriously concerns over the systemic risk posed by the concentration of London market brokers and underwriters being based on the same technology platform. The regulator warned that should there be a cyber attack on one of the major software houses large parts of the London market would be severely impacted.

Follow us on twitter: @risksEmerging

About 86% of all compromised #Google Cloud accounts are used by hackers to mine cryptocurrencies, while other instances are used to install #ransomware or stage #phishing attacks.

Read details: https://thehackernews.com/2021/11/hackers-using-compromised-google-cloud.html

#infosec #cybersecurity #cryptocurrency

I had mentioned free stickers for "How Hacks Happen" earlier in the week and said to DM me for one. But my DMs were disabled! They're open now, so hit me up if you want one. #CyberSecurity #Hacking #podcast #FreeStuffFriday #stickers

Putting the “sec” in DevSecOps: An overall reduction of risk http://dlvr.it/SDNC6X #news #cybersecurity #infosec

New variant fears disrupt start of top U.S. energy conference http://reut.rs/3porX6m

The Omicron variant of the coronavirus has spread to about one-third of U.S. states, but the Delta version still accounts for most COVID-19 infections as cases rise nationwide, health officials said https://reut.rs/333JWrh

Apple #VR, #AR headset rumors: Possible 2022 release date, price and more
http://ow.ly/xVsQ50H2MO6

#Robotics #AIEthics #MachineLearning #AI #Python #DataScience #BigData #DeepLearning #100DaysOfCode #robots #fintech #insurtech #nocode #cybersecurity

Best of Penetration Testing Tools Cheatsheet for OSCP

Credit @GotoStationX

#infosec #cybersecurity #pentesting #oscp #cheatsheet #informationsecurity #hacking #ctf #BlueTeam #itsecurity #cissp #redteam #hackingtools

2
Load More...
SHARE: