Market People Magazine Summer 2020 Edition 4

market issue 4 - Summer 2020 £3.00 Special edition The London Market Working At Home lockdown: Stories from EC3 Claims focus The environment: & COVID on cyber COVID - seeing the positives the magazine for insurance professionals1

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editorial team market Roger FROM THE Oldham EDITOR BA(Hons), FCII, MCIArb, FInstLM Dear Market Friend Chartered Insurance Welcome to this very Special Edition of the Market People Practitioner Magazine, the official publication of LMForums, written and Editor In-Chief produced for insurance professionals and those with an interest in the sector. Staying informed and connected with the Market Roger is a long- has never been more important, so in this Summer 2020 edition, standing insurance we have tried to cover many of the key topics discussed professional, having spent and debated at the numerous London Market Forums virtual 35 years working in the roundtables, over the last few months of remote working. London and international insurance markets. We are very proud of this “Working From Home” edition, During his time on the front line of the London featuring a range of thought-provoking industry content, as Market in areas such as Claims, Broking and well as the ever popular, lifestyle section. We asked some of our Operations, he held senior positions at Aon, HSBC Market friends to tell us about their Working from Home (WFH) and Marsh and in latter years spent a lot of time experience and how lockdown has impacted them. Life has working in the centre of the Market on the various changed for all of us over the last few months, but the London Market modernisation projects, such as ECF, A&S Market has continued to push forward and has adjusted well, and Contract Certainty. although LMForums Members tell us that they are anxious to return to EC3. That being said, a return to “business as usual” Roger is a Fellow of the Chartered Insurance seems highly unlikely. Institute and of the Institute of Leadership and Management, as well as a Freeman of the The role that technology has played during this period of remote Worshipful Company of Insurers. During his time working cannot be overstated, with companies progressively working in the Market, he also studied at the using new and existing technologies in order to stay connected Chartered Institute of Arbitrators in Bloomsbury with their staff and offer their clients the best possible service. Square, London, where he qualified as mediator, We’ve come a long way, but it remains to be seen if our race for specialising in insurance dispute resolution. digitalisation continues at the same pace when we return to the workplace. We’ve added a special “Cyber” section this time to Roger is best known for founding the highly popular reflect the activity and importance of this topic – it’s something London Market Forums, the networking and thought that impacts us equally in the workplace and at home. leadership group, as well as acting as an advisor and subject matter expert to insurance carriers, COVID-19 has also had some positive impacts too, with our brokers and suppliers to the insurance sector. planet and wildlife being given a brief chance to breathe – we look at this with the help of our new environmental correspondent. This is our most content rich edition ever – we hope you enjoy reading it. Please share a copy with your friends and colleagues. We welcome your feedback. Most importantly, do take care and stay healthy. Roger Oldham - Editor Oscar Padilla Pawel Konopski Sub-Editor Senior Graphic Design © LMForums Limited. All rights reserved. No part of this magazine may be reproduced without the written permission of the publisher. All information contained in this magazine is, as far as we are aware, correct at the time of going to press. LMForums Limited cannot accept responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant LMForums a licence to publish your submission in whole or in part in all editions of the magazine. All material is sent at your own risk and although every care is taken, neither LMForums or its employees, agents or subcontractors shall be held liable resulting for loss or damage. LMForums endeavours to respect the intellectual property of the owners of copyrighted material reproduced herein. If you identify yourself as the copyright holder of material we have wrongly attributed, please contact us. To receive your complimentary subscription of Market People Magazine straight to your desk, email us at [email protected] 3

Why low-code will revolutionise the London Market It has been a year of momentous change. Many markets have accelerated their digital efforts to adapt to new ways of operating. How can the London Market keep up? Necessity is the mother Adapting existing Enhancing relationships of innovation systems through tech London Markets are now more open to Learn from other industries: tech like A claims expert management solution change, many taking the opportunity low-code plays a valuable role. ‘In the project from LMA is a great example. to accelerate digital. Lloyd’s CEO field’ developments mean that business Utilising the power of low-code, it helps wants 80%of its business to be done users can build upon existing operations them manage relationships, monitor electronically by the end of 2020. easily. Forget the ‘rip and replace’ approach. performance and was delivered in 5 months. Liberty Create low-code: Bring IT and business together to build what you need. Improve processes and transform CX. Accelerate your digital journey with Liberty Create. Talk to us today: netcall.com | 0330 333 6100 4

Contributors David Kuhn Sue Jakobek Richard Farrell Insurance Solutions Managing Director Chief Innovation Officer Director, Mendix Placing Platform Limited Netcall Richard Ambrose Simon Newman Chris Porter PUBLISHED BY Senior Vice President, Head of Cyber & Business Services Founder and CEO London Market Forums Ltd Entertainment and The Police Digital NexBotix Level 30, Cruise Programs Security Centre The Leadenhall Building, Norwegian Cruise Line 122 Leadenhall Street, Holdings Ltd. London EC3V 4AB T: +44 (0)20 3551 9188 e: [email protected] WWW.LMFORUMS.COM SUBSCRIPTIONS A free subscription service is available for The Market People Magazine. Email us at [email protected] to be added to the list Piers Williams Helen May Christian Kitchen Sales & Relationship Belonging & Inclusion Head of Technology and Manager Sheridan Resolutions Innovation Autorek Miller ISSUe 4 Summer 2020 ISsN: 2397-3781 Hanan Guthmy Rob Anarfi Kieran Quigley Underwriting Assistant, Global Head of Compliance Cyber Underwriting Private Clients Beazley Assistant Brit Insurance Hamilton Insurance Group Dr. Victoria Vytautas Vaitkevicius Christa Adams Soell-Meisel Environmental Correspondent Environmental Correspondent Psychologist Doctor in Biosocial and Health Sciences 5

Contents PEOPLE MARKET NEWS 42. My experience WFH 45. Beyond hurricanes 10. EC3 pulls together 46. Working flexibly? - Our story 49. Am I on Mute again? 50. When the music changes, 14. PPL usage continues so does the dance: Don’t let to grow through your next crisis be a talent lockdown one… 52. Market People Awards 2019 - 18. Is the Insurance Winners Industry ready to strike oil? LIFESTYLE 20. Claims and COVID: 57. 5 Safest Destinations to visit Can Remote Sensing in Europe help the Insurance 60. Seeing the Bright Side of the Market? Covid-19 Crisis 64. What did Social Distancing bring into focus? TECHNOLOGY 66. NORWEGIAN CRUISE LINE ROADMAP TO RELAUNCH 24. Taking insurance 68. Market People Awards 2021 teams fully digital: the race to market digitisation is on 26. Intelligent Process Automation: The Key to the Future of Work in the Insurance Industry 30. The time is now: Why the adoption of low-code is critical for digital- led recovery CYBER 34. Ransom - To Pay or Not to Pay 38. The importance of cyber insurance in protecting the UK’s SME sector 6

London Market Forums Bringing Insurance Professionals Together www.lmforums.com London insurance market LEADERS OF TOMORROW Virtual CONFERENCE 5days 12th-16th Oct 2020 / 12.00pm - 1.00pm Day 1 Diversity & Inclusion in Day 4 The Digital Manager the London Market Day 5 Virtual Leadership in Day 2 Learning & Development the New World - It’s all changing Register here Day 3 Attracting & Retaining Talent FEATURING Speakers from Lloyd’s & MANY MARKET COMPANIES7

market news market 8

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EC3 pulls together Our story 10

MARKET NEWS “Italy has experienced over 800 deaths in the unforeseen in living memory. I made the decision to last 24 hours” – said the 10am radio news. My pull the LMForums team out of London and away anxiety levels were increasing steadily during from our Leadenhall Building office, ahead of my daily commute into EC3 during early March. any Government announced lockdown. It was Listening to LBC radio, it was clear that the UK was clearly evident that the virus was coming at a on the verge of facing something serious. In fact, pace and that this was going to be like something the whole planet was on the brink of something we’ve not seen before. As I sat on a reasonably deserted longer hours than normal, helped and organises over 50 “free to Jubilee Line tube train one by the lack of the usual “3 hour a access” events, bringing together morning, a young man opposite me day” round commute for most EC3 almost 3,000 professionals. After looked like he was in a bad way, with workers. The other noticeable trait talking with our Members in April, bright red eyes and a heavy cold, was the natural preference to do a it was clear that whilst some were occasionally sneezing. The elderly “Zoom” call, as opposed to a phone enjoying the benefits of working lady sitting next to me turned and call. This face to face contact, from home and being closer to their looked with raised eyebrows. It was albeit virtual, has helped immensely family, many were also feeling a little clear that there was a heightened in allowing our personalities to isolated from their Market friends and level of anxiety lingering in the air, shine through, during a period of colleagues and would do anything alongside the COVID-19 virus itself. inconceivable social detachment. to “get back”. From one to one, to one to many, Our first week working from home video conference sessions have LMForums reintroduced its was a little disorientating, as it was been the saviour, in my opinion, programme in a virtual format, full for most people. For the last five helping us to feel closer to family and of moving parts, great speakers years, LMForums has been bringing friends, than pure voice calls alone. and lots of participant interactivity. the Market together on a face to Technology was to become a key face basis, so the sudden cessation The London Market has a unique talking point during our “Lockdown” of our normal Practice Group vibe, which is centred around its programme and the use of programme meant an urgent rethink people and for some, the last few Low Code and Robotic Process of our normal delivery. Talking with months have demonstrated the Automation tools came through as a our Practitioner Membership and power of the network, from both key activites, as London Market firms our vendor partners, it was clear a social wellbeing perspective sought the quickest ways to remove that the Market wanted to continue and for business generation. manual processes and maintain to function, as close to normal as Market Practitioners tell us that customer service. possible, albeit in a new setting. The renewals have progressed well, challenge was on. but new business has proven more Our “New World” event series trilogy challenging during this period. The proved a big hit, bringing together During the first month, we gave our lack of “opportunity meets” in the some amazing Market professionals, Members some breathing space Market has been a frustration for looking at the changing working to establish their own working some, as there is a limit to what can environment and the importance environment and routines – blending be achieved in a digital context, in a that technology and innovation has casulaty renewals with giving a Market with which for 300+ years has played in keeping us all going over history lesson to a child is not the been built on the strength of its face the last few months. At our final event easiest of combinations, but it to face trading. Despite the Market’s in the series we looked at the impact became the norm. LMForums set historical aversion to embracing on our greatest asset “our people”. about establishing a programme that new technology, platforms such would help the Market through this as Placing Platform Ltd (PPL) have With our Practice Groups now unique period. become wholly appreciated meeting again on a regular basis, and vital to keeping the Market LMForums is doing its best to deliver What was evident early on, was that functioning. a “near to normal” programme, a “new normal” was emerging. We supplemented by a range of highly noticed that people were working The Return of LMForums topical special events. If you’d like to Each year, LMForums hosts, produces 11

be part of our sessions going forward, then New World Series go to www.lmforums.com OUTPUT FROM Roundtable three - 30 June 2020 The Outlook Pandemic response - IMPACT ON our People From now through to the end of year and Headline Sponsor into 2021, our virtual events programme is supported by crammed full of exciting and informative content and we’ll be adding two new The EC3 workforce has responded and reacted well, at Executive Practice Groups – one for those least initially, but there are potential dangers if the right with an interest in improving Customer management styles and appropriate training of those Experience and another for Finance leaders. managers is not deployed properly. The coming months will The ever popular Market People Awards has ultimately determine the employment landscape of the London now been moved to 25th February 2021, but Insurance Market. Many firms have and continue to undergo a the nomination process will take place over consultation with their staff over the future, with mixed feedback the next three months, so starting thinking on attitudes towards “home working” versus “returning to the of worthy candidates, who might be your office”. September will see the return of some staff on a rota Market hero or rising stars. basis, subject to Government regulations applicable at the time, but it remains to be seen how firms create a sense of Conclusion “belonging” and maintain a corporate culture when staff are displaced. We live in interesting and fast changing times. The London Market has shown over the last few months, as it has in the past, that David Clarke at times of need, it can rally round and do what’s required for the benefit of the Market, Associate Partner our customers and the wider community. London Market Lead We are a wholly resilient bunch of creative PEN Partnership people who, even at the height of a global pandemic, can find imaginative Companies are a different We have to look at the ways to help the greater good, such as stages in trying to assess the best possible ways to make the coverage pieced together to support optimal “return to work” this whole “experience” as the important transit of vaccines around strategy but the truth is that comfortable as possible for the world. Once again, the strength of the many are caught somewhere our staff. London Insurance Market has come from between BCP and BAU. the power and sense of the community HR functions have responded and network in which it operates. A place Some businesses have had well to this crisis, but the reality I’m enormously proud to have called “My those “difficult” conversations is that they were never set Market” for over three decades. with their staff whereas others up to deal with these sorts of have been holding off from “once in a century” scenarios. At LMForums, we are honoured to have doing so, until the future helped bring the Market together over the becomes a little clearer. darkest times of the last six months and we look forward to continuing to do so as we try PEN believes that creating to manage our way through this pandemic. certainty amongst our There may still be challenging times ahead, workforce, customers and but we’ll do whatever we can to support you wider stakeholder group, has and the wider Market. Stay informed, stay to be the key priority. involved, stay connected. We are, without doubt, stronger when we work together. rOGER oLDHAM Founder LMForums London Market Forums Bringing Insurance Professionals Together 12

Helen May Dr Zena Wood Expert in Neurodiversity, Senior Research Facilitation, Diversity & Fellow Inclusion University of Exeter Sheridan Resolutions Creating a sense of both “belonging” and “well-being” The Pandemic and subsequent change in working when a majority of staff are separated from their work environment, has demonstrated that existing models can be colleagues and company, should be amongst the top adapted. priorities of any firm. The need to have offices based in expensive central city The first offices were in existence in the 1600’s and it has locations, requiring staff to travel in daily, is under review and is not until this recent global incident that people have likely to change for a number of firms. really given the alternatives proper consideration. The reduction in the need to commute, has a material impact People are genuinely feeling the lack of connection, not of the whole eco-system, from transportation to support from the office per se, but from the people they normally services - this even has an immediate impact on pollution, as come into contact with on a daily basis. we have seen.  There is naturally real anxiety felt by employees over the Remote working can also have a positive impact on the future and the job of the Board and Line Managers is to availability of talent and skilled staff, as these people can be be as supportive and facilitative as possible - this might sourced from a much wider geography - even internationally. require new skills and training. Whilst this episode has been testing for all of us, we must prepare for future pandemics which threaten to be even more serious.  Other key output from the session included: There is evidence to show that some Polling in some London Market firms is employees are working longer hours showing that, at the moment, less than 10% We might see a model that is more of a than they did before the lockdown and of employees would be happy to return to hybrid working environment - more akin to a separating business and home life is work - a driving factor behind this output is distributed workforce proving challenging for some - what role do believed to be the perceived risks associated employers have in helping with this? with commuting  Whilst remote working was a novelty at first, for many the fatigue is starting to set in and There is also evidence to show that Strategic decisions around people are here are mental health concerns emerging collaboration amongst some groups proving difficult for many firms, as the whole of people is higher than it was before landscape is changing at such a speed that In the absence of our normal physical lockdown - some have adapted well to new things are out of date almost before they working environment, employees and firms technologies enabling quicker more efficient have been announced or consulted upon need to look at developing new and different meetings networking skills, mostly using technology Polling 3How are you planning/approaching the return to work? New World Series We will be employee 22.7% led - listening Single to Roundtable three - 30 June 2020 Pandemic response - IMPACT ON our People the staff 1Are you worried about the cultural dilution over We will be company led - 4.5% time, with more remote working and new joiners being decision taken by the Board onboarded virtually? We will be Government 0% policy led - decisions taken in line with the Government Return to Work Policy All of the above will be taken 72.7% into account 0 10 20 30 40 50 60 70 80 Yes 54.5% 4The reliance on existing/ new technologies and need for innovation, has been more evident over the last Somewhat 36.4% 4 months than at any other time, for most Firms. What impact is this having/ will have on your human resourcing strategy and the need for “digitally” skilled people? No 9.1% The technologies we have 25% adopted have not led to any 0 10 20 30 40 50 60 70 80 changes in roles /or will not impact our resourcing needs 2If you are planning to encourage home working in your 50% firm in the future, how many days do you anticipate (or The technologies we have you would encourage) might become the norm for coming adopted have necessitated into the offce? (or will) additional technical/ digitally skilled personnel Our company had already 25% made the decision to attract digitally skilled personnel We would encourage 37.5% 0 10 20 30 40 50 60 70 80 1-2 days We would encourage 43.8% 5During this unexpected period, have you continued to 2-3 days recruit new members of staff, as would have been the case prior to the pandemic? We would encourage 6.2% 3-4 days There will be no suggestion Yes, no change at all 31.8% or expectation and it will 12.5% Recruitment is now only be a decision made by the taking place when deemed employee absolutely necessary 59.1% 0 10 20 30 40 50 60 70 80 We’ve decided to put a 9.1% recruitment freeze in place 0 10 20 30 40 50 60 70 80 13 Level 30, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB | [email protected] | +44 (0)203 551 9188 | www.lmforums.com | © LMForums

PPL usage continues to grow through lockdown Who would have thought that the London During this period of remote working, PPL has insurance market – famed for its face-to- celebrated its fourth birthday in July and the market face trading and physical proximity, could turn has made steady progress in its adoption of electronic so quickly to operating remotely and placing placement. The number of unique users has risen by business electronically. There is undoubtedly a nearly 50% since March and over 100 broking firms great deal of value in being an ecosystem that placed business on PPL in July. There is also a steady London does not want to lose, but it can and flow of new companies – both underwriters and brokers, has changed how it works and some of those joining the platform, with contracts being signed on changes may become more permanent. All the a regular basis. And that brings new users. Since the data points positively to a robust upward trend lockdown started, there have been nearly 1500 new and late June saw record breaking levels of users set up and around 700 users have gone through activity, with the volume of trades reaching over the training sessions. In comparison in 2019, we averaged 8000 risks placed – almost three times higher than 336 new users per month and 136 users accessing the week the market went into lockdown. training. Even more importantly, the experience is proving to be positive with brokers commenting on the good response times from underwriters, and more brokers starting the process from quote. The activity stats also show some interesting trends. For example, users are active earlier in the day and later into the evening – there are no longer spikes around box hours, as people are adjusting their day to support the needs of home and family. We know that PPL needs to be better. In terms of the platform itself, we have been working with the market to define the next version of the platform; what would users like to see improved in the look and functionality of its platform. There will be more news on this in the autumn. 14

MATERCKHENT ONELOWSGY We have other priorities in terms of – all absolutely vital if you want real These are extraordinary and both improving the current platform market choice for your electronic challenging times. There is no and how it is used. It is still mostly a placements. doubt that while the onset of the stand-alone system, not integrated pandemic was frighteningly fast, into brokers’ and underwriters’ back Liquidity and choice are the crucial the economic consequences will offices. That of course is the case of success factors for any market – be with us all for a long time – and any platform that needs plumbing actual or electronic, and in four returning to ‘normal’ will be slow and into a policy administration system years PPL has achieved critical many things may have changed or a broker’s back office. We have mass. It is the key foundation stone forever. As we work towards new been working hard on developing for enabling the efficient digital ways of working, unbundling the APIs to improve this. placement of complex risks. The parts that can be done remotely focus for everyone now should be and those where human interaction Improving the user experience is on getting all the information in is imperative will be critical. It is still where we are focussing 80% of our properly at the very beginning of the too early to understand definitively energy, delivering agreed platform process, so the entire market can what will change – but open and updates throughout the year. The benefit from better data throughput active debate will be a vital part of fact that process and functionality at every stage of the value chain. finding out. improvements are decided by Collaboration is - as always, key. market practitioners themselves The key to ongoing progress will be Sue Jakobek means that they are relevant to the the market continuing to work as a people who are using the platform team, with the participation of all Managing Director, every day. For example, in February the market firms, both brokers and Placing Platform Limited of this year we released the new underwriters. facility calculator functionality to make it easier for brokers to work out underwriter lines. Facilities now represent approximately 25% of all risks placed on the platform and this addition will save the broker time. The very essence of a successful marketplace is that it is many-to- many, it delivers choice through critical mass. By August, PPL had 174 brokers and 165 underwriting firms on the platform, offering the widest possible selection of business partners and risk classes 15

We follow the trends in the insurance market so you can stay ahead of them. We're not just auditors, tax advisers and consultants. At RSM, we make it our priority to understand your business so you can make confident decisions about the future. Experience the power of being understood. Experience RSM | rsmuk.com The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 50 Cannon Street, London EC4N 6JJ. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et s1eq6of the Civil Code of Switzerland whose seat is in Zug.

London Market Forums Bringing Insurance Professionals Together London Market Forums Bringing Insurance Professionals Together time to join Monthly LMForums PRIZE LMforums is the fastest growing “FREE TO DRAW ACCESS” networking and thought leadership community group IN EC3, bringing insurance Win a mens or professionals together from across the London ladies jacket Market. Throughout the year, our Practitioner and worth £800, Corporate Members have the opportunity to attend thanks to OVER 50 EVENTS, AND MORE, covering a wide variety McCann bespoke of subjects. lime street at LMForums, we provide a platform for everyone, all new and existing members FROM GRADUATE TO CEO, working in or supporting ENTERED INTO FREE PRIZE DRAW this unique Marketplace. Free Membership: LMforums is the Market’s an MGA, coverholder or www.LMFORUMS.com popular thought leadership one of the insurance trade and networking hub, run associations. by insurance professionals for insurance professionals. Join in, learn, make some We provide a platform new business contacts and for everyone working in be part of your popular our supporting this unique Market hub. The key words Marketplace. in business today are collaboration, knowledge Access is free to those who and networking. This is what are bona fide employees LMForums does best. of insurers, brokers, Lloyd’s, 17

Is the Insurance Industry ready to strike oil? The 3 key elements to unlocking the value of Insurance Data The Insurance industry is highly manner, creating meaningful Streamlining Data Format dependent on data, it is at the insights. core of everything from risk, pricing, It is vital to normalise data into a underwriting, actuarial modelling When firms are sourcing data there consistent format to establish a base and finance. are key things to consider: line. The comparison of different languages, so to speak, leads to Data is hugely valuable and has • Where is the data coming from? misinterpretation and is open to been described as the oil of the ambiguity. These differences are 21st century. Like oil, data has very • Who is the data pertaining to? even greater when we consider the little value in its raw form, but once various digital formats data is stored refined and processed, the value is • What does the data relate to? in. greatly increased. Data is the most valuable commodity the world has • When was the data captured? What is important is that accurate, ever seen and online giants such comprehensive and efficient as Google, Facebook & Amazon • What is the underlying bias in the processes are in place for its have shown that data can be data? normalisation. commercialised into billion dollar industries. The Insurance sector has Mapping of the sources is key to Accurate a wealth of data, but it currently ensure data integrity and accurate struggles to unlock its full potential. meaningful MI. When converting anything there Put simply, the Insurance Industry is is sometimes disparity between sitting on a billion dollar oil field and Multiple Sources of Data versions. To minimise this, the tightest needs to learn how to bring it to the possible tolerances must be applied. surface. Data is continuously evolving, and This will result in more accurate results we are seeing new types of data when analysing and reduce any Firms must invest in tools to unlock emerge that did not previously exist inadvertent bias. the potential of their data. Long- 5 -10 years ago. New sources of term, this could benefit Insurance data include social media, smart Comprehensive firms by giving them a competitive phones, telematics, and wearable advantage over rivals. This technology to name a few. It is Normalisation must be done at advantage could be in the form of interesting to ponder where new the desired level of granularity, if more competitive and attractive sources might emerge from as new possible, at the most granular level. products made possible from technology such as the Internet Of This is to ensure all data is captured. unlocking the knowledge available Things develops. Loss of data can occur; due to the in data firms already hold. number of manipulations a data set The Insurance industry needs to undergoes. There are three key elements to understand the wealth of data unlocking the value of data: already available. The more sources Efficiency of data, the greater the level of • Sourcing potential insight and value that Manually manipulating several sets it can offer. All sources open a of raw data to be cross-comparable • Management different and sometimes very subtle is time consuming. Subsequent steps view of behaviours. The greater to this process are relatively simple • Insights the number of variables a data in comparison. Due to the speed, set covers, results in the better regularity and volume of data that is Using technology to meet these understanding and more accurate available, it is essential to automate three elements ensures data is predictions that can be gained. this process. accurate and processed in a timely 18

MARKET NEWS Management access to data will need to be convey findings better. flexible to ensure it can be accessed Currently in the Insurance industry anywhere at any time. However, this might not be detailed the approach to managing data enough for everyone in the is an area of significant weakness. Security and compliance organisation. Dumping data into a repository with very little thought or perhaps Whenever we talk about data it is Therefore, to whom the report is understanding of what the best way impossible to not mention security intended is vital. Different levels of to manage it is common. and safeguarding. Data holds the people within an organisation will records of people’s lives and their look for differing levels of detail. Volumes habits. In the hands of the wrong individuals it could be used to cause Understanding the data is vital as According to a recent study, significant damage or harm. there may be a preferable or logical data sets in the future will not be way to present the results and its measured in the Billions or Trillions We are seeing more regulatory important this is understood when but more likely Quadrillions and bodies looking to implement new compiling the report. upwards. This is because the volume regulations for the management and of data is growing exponentially. security of data. The FCA’s GDPR is a Conclusion The processing power required prime example of this. This is just the to manage these volumes is only first step in a completely new area • Data is an underutilised asset available in technology. Going of regulation that will continue to Insurance firms are sitting on forward, Machine Learning (ML) and develop. Artificial Intelligence (AI) will play a • It could give significant significant role. GDPR means firms must protect the competitive advantage data they hold and failure to do Aggregating data so will result in fines. It also covers • Technology is key to unlocking people’s rights regarding their data’s potential Aggregating together as many personal data. Long term, data will different sources as possible is vital continue to be controlled more and • Automation is vital to gain the most value. Collating more by the individuals it pertains multiple records pertaining to an to. At some point individuals might • Each Insurance firm will have a individual or organisation is key be able to monetize their data unique approach to maximising the potential of the and have it working as an asset to data. An example is linking together generate income. • The larger the data set the Wearable Tech, Blackbox and better historical customer data. How do we Insights link these all together? Each of these • The greater the number of data data sets will include different data Vast quantities of data can be sources the more value is added that might not have any unique sourced and managed. However, if identifier common to all. we cannot gain useful and accurate AutoRek is leading the field with insights then the processes are effective data management for This is where a cascading matching largely redundant. the future. Our mission is to get the process is vital and complex decision Insurance Industry looking forward trees will need to be applied to Reporting and unlocking the value their effectively aggregate this different organisation is sitting on as early as information. ML & AI will be essential The codification of the results into a possible. If the Insurance Industry because when we talk about a report is core to the process as this has the oil-field, we have the ‘state minority of data remaining, this still is the main usable output insurance of the art’ platform to sit on top and could be billions of records. These firms will gain. This is what will the technical know-how to work with advanced technologies can act like enable them to gain a competitive you to maximise this valuable asset. humans, making evaluations and advantage and ultimately become applying complex logic. more profitable. Piers Williams Insurance Sector Lead Storage The most important consideration T +44 (0)203 912 8507 with this is the layout and what is E [email protected] To store the volume of data trying to be conveyed. The impact available, firms must consider their of how a report presents the finding infrastructure requirements to ensure can have a significant effect on that there is the capacity to store what is interpreted by the individual and backup data. Backing data up reading it. in multiple locations is required to mitigate the risk of loss and therefore The physical look and feel of the firms should consider cloud solutions report are key components to get to overcome any risks. We live in an right. A picture speaks a thousand increasingly globalised world where words, a chart or graphs might contain enough information to 19

Claims and COVID Can Remote Sensing help the Insurance Market? It is becoming increasingly clear that climate Until recently, using this approach was difficult, with only change is radically altering the basis for a limited numbers of useful satellites in orbit that could risk assessment, with damaging weather events be drawn upon, limitations on the commercial use of happening more frequently and with greater drones and the need to analyse the imagery only by severity. For example, just this month, NOAA using skilled human interpreters. That has all changed forecasted that the 2020 Atlantic storm and however – with more than 350 useful satellites in orbit, hurricane season has an 85% chance of being at least 25 imaging attempts per day are now made for more active than normal levels. When such every point on the Earth’s surface. Also, drones are now events do cause damage and loss, gaining an a ubiquitous commercial tool, and in most countries, understanding of the impacts is so much harder legislation has kept pace with technology to mean that in a world currently dominated by the COVID-19 they can be deployed to capture high resolution images pandemic, which prevents, or adds delay and and videos very soon after a risk event. Crucially too, cost to the process of visiting and analysing rapid advances in AI technology mean that relevant loss at affected locations. So is there another information can now be extracted automatically from way, a data-driven approach where up-to-date the images, enabling valuable insight to be garnered in information can be rapidly gathered without seconds after an image is received, rather than having putting loss assessor staff at risk? to wait for hours or days as was invariably the case. In scientific terms, “remote sensing is the process of Ease of delivery detecting and monitoring the physical characteristics of an area or object by measuring its reflected and A critical question however has always been how do emitted radiation at a distance”. in practice, this means those who need the information get access to it? Based gathering images from satellites, drones or aircraft and upon developments in cloud computing and Software- analysing this data to detect, scope and quantify losses. as-a Service platforms, customers are now able to order data direct from their desk through secure online visual intelligence platforms, only needing a browser to do so. They can then interrogate the imagery through the platform or receive a report. 20

MARKET NEWS Real Benefits Loss Assessment – But Remotely Summary This rapid response to claims The impacts of COVID-19 are Although Remote Sensing has been events using remotely sensed changing many aspects of how available in the insurance industry for sources can support the we all work, and already remote many years, recent major advances insurance market in a number of working is becoming the norm for in imaging capacity and technology, ways: many. Using “remotely sensed” combined with very significant data, this can now apply to the loss reductions in the cost of leveraging • Providing evidence of site as well. A loss assessors’ skills are this methodology, now make it a the extent and severity of still critical, but now they can be viable option for claims assessment. an event in its immediate supplied with visual data and derived At the same time, climate change is aftermath, supporting loss intelligence at their desk and carry influencing perceptions of risk levels estimation and reserving out the assessment there. The need to and COVID-19 is changing the way physically visit each affected location we work, in particular our ability to • Providing an ability to is removed, resources can be focused travel to, and access, many locations. rapidly assess damage of where they are most needed and As remote working becomes the insured properties even when actual visits reduced to a minimum, norm, perhaps the time has come too physical access is impossible saving costs in terms of travel and for remote claims assessment. accommodation, speeding up the • Expediating loss adjustment process and reducing exposure to “While there are examples of by providing preliminary loss COVID-19 related health risks. There insurance companies using projections are limitations however - direct remote sensing directly or in observation of interiors is challenging combination with other indices, • Informing claims response in most cases and sometimes the it remains a curiosity as to why planning level of detail required cannot remote sensing has not been be met. However, remote sensing adopted more widely by the • Accelerating claims provides an evidence-based and management by focussing wholly independent analysis method, insurance industry.” on those in most need and, and can simultaneously provide though a quick claims both synoptic data to cover a whole The Potential and Uptake of Remote triage, reducing costs as affected town or region and data for Sensing in Insurance: A Review. Jan well. individual properties, all in a fraction de Leeuw , Anton Vrieling , Apurba of the time and cost of traditional Shee , Clement Atzberger , Kiros M. • Providing an indicator of methods. Hadgu , Chandrashekhar M. Biradar , potentially fraudulent claims Humphrey Keah and Calum Turvey. 2014 • Providing the ability to settle many claims quickly, with the attendant reputational benefits, but again, also reducing costs. Dave Fox CEO Geospatial Insight Ltd 21

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Taking insurance teams fully digital - the race to digitisation is on T he coronavirus pandemic has touched all sectors of the economy, with every person and business being impacted in some shape or form. With recent figures released by insurance market Lloyds of London estimating that coronavirus claims are set to reach £2.5-£3.5 billion globally, businesses have already begun to turn to their insurers to recoup lost revenues and incomes. T his new surge in claims is set to Empowering your team with low- the upcoming spike in claims, sort place pressure on an industry code applications through market confusion, conduct that for many years has been complex tasks remotely, and assess unable to innovate and digitalise Low-code is essentially a visual new sources of risk, while relying and help streamline workflows and development approach for building on core systems to maintain daily processes. Compounded with the software using drag-and-drop operations. fact that many companies and components that is transforming the risk professionals within the sector way applications are built. It can Enabling collaboration between are having to use legacy systems, be a powerful and simple toolkit business experts and IT that offer a lack of interoperability that provides the means to reach a between the front and back-end strategic result. A low-code development platform systems, meeting this new demand enables a diverse talent pool of will be challenging and a time costly For risk managers, this goal centres business experts to collaborate with IT exercise. on jumpstarting the use of next- teams and coding professionals. This generation capabilities, such as approach captures the knowledge, So how do you go about cloud-based software deployment expertise, and iterative feedback of modernising core risk management and artificial intelligence, which can business-focused experts throughout systems and future-proof policy easily be integrated into legacy the entire software development underwriting processes at the scale systems with low-code tooling. Each lifecycle, enabling quick deployment and speed now required? has a specific way of empowering of customised, targeted software for lean teams of specialists to handle web and mobile use. 24

TECHNOLOGY Second, the underlying architecture disaster recovery strategies. With low- processing tools to review and of low-code platforms prioritises code, platforms are cloud-native, flag contract language and risk integration, connectivity, and offering the security of housing mitigation strategies to ensure proper openness. This enables enterprises to systems remotely and enabling coverage. extend their digital capabilities with seamless workforce access from next-gen innovations while keeping anywhere. Future-proofing the bottom line their legacy systems’ “core” clean and secure. The low-code platform is cloud- Granted these are unprecedented native, offering the security of times. However, to speed up the Here are the two applications of housing systems remotely and recovery process, risk professionals technology enablement that will enabling seamless workforce access must help business understand enable insurers to handle rising from anywhere. Regardless of what the risk profile of every potential demands and position them for triggers a systemic shut down, cloud- customer and reduce the overall risk success for what is the ‘new normal’. based systems will mitigate the profile of their organisation. impact. 1 The cloud enables resilience This is where low-code can help The insurance industry hasn’t 2 AI accelerates and as it can help scale an effective fully reached the heights of automates contract liability response and protect the bottom adopting and leveraging cloud- assessments line, speeding the pace of digital based software development. The adoption from later to now. pandemic has meant that cloud During this crisis, claims will increase. technology needs to be adopted Risk managers will face uncertainty For further infomation please visit rapidly. Today risk managers are from mounting legal challenges, Mendix for Insurance. working remotely, and they require as underwriters are pressured by access to data and workflow governments and businesses to processes that are often managed use business continuity policies in mainframes. But this can result to cover losses from government in operational delays when data mandates to shelter in place, over- centres are hit with connection riding existing contracts. However, challenges. In contrast, cloud-based business continuity policies are highly operations are resilient. By design, complex legal documents and it can the cloud enables business continuity become highly time-consuming to from small- and large-scale evaluate contract liabilities triggered interruptions, with a rolling system by the pandemic. of global availability spread across geographically dispersed locations. Although there’s no side-stepping David Kuhn this action, underwriters need help Insurance Solutions Director Cloud-based operations today play to get this done in an accurate a vital role in enterprise business and timely fashion. Fortunately, at Mendix continuity, including in insurers’ own applications built with low-code tools can integrate back end systems with AI and natural language 25

Intelligent Process Automation The Key to the Future of Work in the Insurance Industry It’s no surprise that businesses across the world Business leaders are facing the impossible task of are beginning to explore ways in which they solving these issues with the harsh reality of smaller need to adjust their operating model in light of budgets due to cost-saving initiatives across their Covid-19. Furloughed employees, smaller, remote business function. the new hybrid operating model IS teams and new social distancing restrictions EMERGING, where remote working simply becomes are proving to be difficult obstacles to a new way of life for employees requires structural, overcome for organisations looking to ensure cultural and technological improvements across all they are running close to business-as-usual. sectors. the insurance industry, a people-first sector These smaller teams can feel disconnected which places huge emphasis on physical interactions and less engaged which in turn can mean that and building relationships, now faces the unique productivity levels are lower, with high error challenge of modernising and adapting the way it rates leading to overall low employee morale. operates and quickly. 26

TECHNOLOGY The insurance industry has new hybrid model, driving cultural are seeking ways to maximise the been quick to adopt RPA in benefits such as empowering impact this investment is having comparison to other industries, employees to focus on high value at this critical time of restructuring. clearly understanding the value areas like leadership, creative With a lack of analytics and data, it can deliver across a variety thinking and complex problem performance diagnostics and often of processes within the vertical. solving or similarly improving no ROI modelling in place, it can Since the rapid increase in remote specific operational functions such feel challenging to assess how working throughout 2020, it’s clear as employee training, onboarding effective your RPA deployment that Robotic Process Automation and overall engagement when has been at a time when you’d has a much bigger part to play in working from home. By harnessing like to scale up your automation shaping future job functions and this specific technology, businesses efforts. The idea of long, arduous enabling businesses within the can reduce the risk of critical and complex implementation insurance sector to restructure. processes not being performed by periods to increase your use of RPA In March this year, EY reported a remote or smaller workforce whilst software could be off-putting, even that 41% of bosses in 45 countries performing business processes though automation could provide were investing in accelerating that require secure access which significant support to your full-time automation as they prepare for has historically been problematic employees as they adapt to the a post-coronavirus world. It’s also to perform remotely. Using RPA to shift in motion. clear that the Insurance sector has relieve some of these pressures, strong use cases for some of the could be transformational during The insurance sector will be AI enabled technologies, such as this transitional phase. experiencing a shift in focus in Optical Character Recognition response to operational, economic for document processing and As many forward-thinking and societal challenges presented Machine Learning algorithms organisations within the London by the Covid-19 pandemic, to enhance cognitive analysis. Market have deployed a more scaling back on some activities Deploying RPA at this moment in traditional form of RPA, it’s and driving progress and positive time can support your organisation important that business leaders changes in other ways. Businesses while it makes the transition to the 27

will look to create more efficient during this digital transformation. robots executing business critical ways of doing business to ensure Now, as we move towards a trend tasks unphased by the pressures of that improved outcomes are of the remote workforce there is an remote working, disparate teams achieved both for the business urgent need for more creative and or security restrictions. Utilising the and its customers. Automation productive ways of working; this is range of benefits RPA delivers, as has been regarded as a driver of likely to persist after the pandemic well as investing in upskilling and business change long before the as there is a greater acceptance of training, your full-time employees will Covid-19 pandemic, however it is flexible working arrangements. increase efficiencies, save time and fast becoming an imperative with ultimately, money as we all navigate revised urgency to minimise business We believe that the future of work, this new way of working. Businesses risk and enhance resilience. Through including the success of the new who invest in both their automation the application of automation and hybrid operating model most capabilities and their human cognitive technologies, such as businesses are pursuing, relies on employees, will thrive rather than just NexBotix’s existing portfolio of RPA the harmonious collaboration survive in a post-Covid 19 world. technologies, the insurance sector between human-employees and can drive significant efficiencies Chris Porter Founder and CEO NexBotix www.nexbotix.com Our Intelligent Automation solution has highly competitive pricing, extensive data and analytics and a unified-multi- Launched in March 2020, NexBotix is pioneering the next vendor platform aggregating the performance data of a generation of Intelligent Process Automation platform. Our variety of RPA providers in one simple view. Our aim is to mission is to disrupt the Intelligent Automation industry with provide our clients with a cost-effective solution that can our accessible, agile and powerful solutions built to unleash be implemented fast. With our virtual Centre of Excellence human potential. NexBotix was incubated by Camwood and fully managed service offering, businesses can lean Ltd which has over 20 years of experience and a proven on us to help them execute significant changes to their portfolio of products and services that help organisations operating model, whilst maintaining business as usual with intelligently plan, manage and automate the core technologies to enable businesses to work better, smarter minimal disruption to their employees or customers. and faster in the digital workplace. 28

LRMEGFIoSrTEuRmfos rNLeMwFsolreuttmesr NeAwDsVlEeRtTter London Market Forums Bringing Insurance Professionals Together www.lmforums.com Click Here >> 29

The time is now: Why the adoption of low-code is critical for digital-led recovery Digital to survive. It’s the message for business leaders everywhere, as we all continue to navigate uncertain times ahead. With over 300 years of face- The feedback we’ve received from Low-code enables citizen to-face trading, physical customers in the London Market is developers (aka business users) and interactions and paper-based that generally businesses have been IT to collaborate on application processes are in the London Market’s surprised at how well they’re coping. development, radically improving DNA. So how does a market founded We know from our experience in processes without the need for in a coffee shop, accelerate its this space, that there has been an complex code. This makes the whole plans to go digital without losing increasing need for modernisation to process of delivering change the relationships that are part of its improve the efficiency of processes faster and easier, using the expertise trading history? and reduce costs, while also building of the business, not just IT. on digital investments already made. Low-code is one technology that’s Due to unprecedented By helping businesses to get off the pioneering a fresh approach to a circumstances, the market has been starting block quicker, low-code digital-first future. Recognising the forced to go digital. From the delivers value faster. A good failures of big transformation projects discussions we’ve had, the feeling example is the LMA’s ‘Gemini’ that are often too expensive and is that London Market should use claims expert management too slow, low-code is supporting this as an opportunity to accelerate solution, built with Create IT and change leaders to ‘get off trends and capabilities, which low-code. This enables carriers the starting block’. Improving one otherwise would have taken years to to better understand their process at a time. come into play. true spend on claims experts, manage relationships and monitor We spoke to Richard Farrell, CINO It’s still early days, with many performance. A major plus point at Netcall a leading provider unknowns about what the future was that the solution was delivered of lowcode and customer holds. This is a similar story in many of in just five months, a significant engagement solutions. Richard the markets we operate in, and in achievement for a London Market shares how their Liberty Create low- their ‘The digital-led recovery from project. code solution is helping organisations COVID-19: Five questions for CEOs’ respond in the face of the crisis. And report (April 2020), McKinsey state: we get his views on what’s key to the London Market building a digital “We believe the COVID-19 crisis is future. likely to significantly accelerate the shift to digital and fundamentally The London Market is known for shake up the business landscape.” its traditional operating practices. For those who aren’t familiar with What’s been your observation of lowcode, what is it and how does it how the market has responded to help make digital a reality? the COVID lock-down period? Richard Farrell, Netcall’s Chief Innovation Officer 30

TECHNOLOGY What best practice have you seen These projects are recognised as I recently presented a webinar with in other industries that the London transforming core processes and John Rymer from Forrester as a guest Market could learn from? reducing cost, meaning speaker. In it, he discusses the lessons that businesses will be strengthened learnt from the Covid Crisis, the Several of our customers have become as a result of these low-code technology strategies for the recovery powerhouse low-code users. That’s applications. phase and how organisations should down to the ease-of-use of Create – it prepare for the ‘next normal’. Watch serves both professional developers What’s the one piece of actionable it on demand (webinar details below). and business users. And in the face advice you would give IT and of the crisis, it has empowered these change leaders in the London customers to collaborate and innovate Market who are looking at what they in amazing ways. can do today? There are also many examples from Throughout history, we’ve seen Webinar: Lessons of the organisations that have innovated unpredictable events that are COVID crisis, plans for the in record time during this crisis. Take impossible to plan for, and I’m sure ‘next normal’on-demand Croydon Council, in 120 hours, they more are ahead of us too! webinar featuring John built and deployed an entirely new Rymer from Forrester and business process application from Which investments are the most Richard Farrell. Released scratch, using data from a legacy necessary to create the technology May 2020. system, complete with Single Sign On environment allowing your company (SSO) and BACS payment integration. to react to changing market demands Blog: Business agility: the It had made payments of more than and thrive in the ‘next normal’? cure for UK businesses amid £10m after 10 days. turbulent times And, despite massive unknowns, a A solid starting point is a platform that Feature sheet: Netcall’s major global insurance customer of helps to boost productivity and cut Low-code ours is going live with their low-code costs by adopting rapid digitisation plans as one of their priority projects. of processes. That’s going to be key to building the digital-first future. In fact, we have customers across a range of industries including insurance, transport and retail who are progressing their low-code projects, despite budget cuts elsewhere. 31

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Ransom To Pay or Not to Pay If there’s a single cybersecurity threat that To gather the latest intelligence on this wide- worries organizations most, it’s ransomware. ranging, increasingly sophisticated crime, NetDiligence®’s Cyber Claims Study revealed that NetDiligence recently convened 20 experts in a not only was ransomware the leading cause technical Ransomware Advisory Group from of loss for cyber but the cost of ransomware the leading breach incident response service claims was often much higher than other providers — including Arete, Charles River incident claims. Associates, CrowdStrike, Cytelligence, Deloitte, Kroll, Kivu, Tracepoint, MOXFIVE, Tetra Defense, and others to share what they’ve been seeing and the prevention tactics they suggest. 34

CYBER “We’ve seen ransomware Martin Heyde, Technical Director for attack,” Heyde says. “It is a risk to evolve from attacks that incident response at Deloitte, agrees assume that the only impact of a encrypted data but could still allow that these new ransomware variants ransomware incident is the encrypted data recovery without full ransom have created worrisome risks for cyber files. The potential for data to have payment to those targeting backups victims. been compromised should also and services, pressuring organisations be investigated, especially when to unwillingly fulfill the financial gain “An increasing concern is the considering GDPR fines and that the threat actors are seeking,” says evolution of attacker methodology threat actor can easily advertise their Andy Obuchowski of Charles River to ‘double extortion’, where data success on social media.” Associates. “These attacks in recent is stolen for additional leverage months have progressed—threat in addition to the impact of the actors now acquire insurance ransomware; increasing the ability coverage data to maximise financial for threat actors to monetise their gain.” Ransomware Types: New and Familiar • The newer REvel and Maze variants of ransomware have been associated with data exfiltration as part of an extortion scheme. • Maze can download between 100gb to 1tb of proprietary or sensitive data. • Perpetrators either threaten to post this information publicly or harvest credentials to then attack the victim’s partners and clients. • Clients may find themselves subject to privacy data breach impacts, such as the need to comply with state breach notification laws, significantly increasing claim costs. • Other ransomware types encountered include Ryuk, DopplePaymer, Sodinokibi, and Netwalker, as well as the continued rise of Ransomware as a Service (RaaS). Common Areas of Weakness • Lack of actionable data breach incident response plan • Lack of multifactor authentication • Lack of next generation anti-malware endpoint protections • Open remote desktop protocols (RDPs) • Unsegmented backups • Lack of employee training What to Do When Ransomware Hits • Don’t shut down the entire network. Ask your response vendor to assist you with impact isolation. • Allow incident response vendors to remotely implement automated malware eradication/ remediation tools. • Keep endpoint protection in place after the immediate incident is resolved. Ransom: To Pay or Not to Pay • Threat actors now expect some organizations to pay for their encrypted administrator-level credentials. • Very often (about 50 percent of the time) ransomware impacts the backup files as well, encrypting or otherwise making them unusable for data recovery. • Recovering from viable backup where possible is still preferred to paying the ransom. • Expect business interruption from three-15 days if ransom is paid; one- 10 days if recovering from backup • The negotiation process can itself halt operations—including unreliable decryption keys and delays with bitcoin payments. This is especially true for SMEs that don’t have the liquidity for significant sums, even if their cyber insurer will reimburse them. 35

Looking Ahead: Future authentication (especially in • Hypergrowth: Claim payouts Predictions M365) and next-generation pertaining to ransomware- endpoint protections (such as related incidents more than • Bigger, more complex attacks CrowdStrike’s Falcon Prevent). tripled from claims reported last with bigger demands are on the Close RDPs and use cloud-based year, with an average loss of way. backups. US$275,000 in 2020. • Provide ongoing employee • Organisations can expect training to reduce human • The severity of ransomware larger ransoms, plus larger legal, error and guard against social claims can be much higher than recovery, and forensics costs engineering. other cybersecurity incidents: Several claims reported in 2020 • Work-at-home security measures, Moving forward, it’s vital to stay fell in the range of US$1 million to including closing exposed RDP abreast of this constantly evolving $15 million. ports, will be required through the threat. Information-sharing forums coming months as remote work such as the Ransomware Advisory Visit your eRiskHub portal to continues through and beyond Group and educational platforms learn more. the COVID-19 pandemic. like our eRiskHub® portal will ensure your organisation stays aware of the Sidebar: Are Your Clients Prepared Protecting Against Ransomware dangers ahead. for a Ransomware Attack? Attacks Senior managers are responsible for Ransomware’s Impact on Cyber how their organisation prepares for • Create and/or update an Claims and responds to a cyber incident, actionable data breach regardless of whether the incident is a incident response plan that can The NetDiligence® Cyber Claims ransomware attack or a data breach be accessed at a moment’s Study analyses hundreds of mishap. Breach Plan Connect®, notice and includes vital third- cyber claim incidents impacting powered by NetDiligence®, is a party experts known to the organisations, with findings heavily turnkey solution designed to help organisation’s cyber insurer. weighted against small to medium your client’s senior managers oversee Breach Plan Connect®, powered size enterprises (SMEs). Our most and coordinate their organisation’s by NetDiligence®, is a turnkey recent findings on ransomware response to any cyber incident. solution that helps organisations include the following: Includes a mobile app to facilitate build and store a breach communication during a ransomware response plan so that it can be • Ransomware is now the leading crisis. For more information, accessed 24x7 from a mobile cause of loss for cyber insureds please visit https://netdiligence.com/ app. solutions/breach-plan-connect/. • Implement cybersecurity measures to mitigate ransomware, such as multifactor 36

London virtual CYBER SUMMIT 16th - 20th Nov 2020 / 11.30am-1.00pm • lEADING sPEAKERS • aUDIENCE participation • outstanding cONTENT • Insurance debate free Registration click here Register here www.lmforums.com www.netdiligence.com hosted by London Market Forums Bringing Insurance Professionals Together 37

The importance of cyber insurance in protecting the UK’s SME sector C yber-attacks are becoming more frequent and more sophisticated, yet fewer than one in ten businesses have taken out cyber insurance. So why is there such a low take up of policies by businesses in the UK and what can be done to improve this? Cyber-crime is now firmly high – as much as 99% according one that we are still struggling to make established as one of the top to the Association of British Insurers sufficient progress with. threats to the national security of the (ABI). There is also a lack of reliable UK. Recent figures published by the data about the nature and scale SMEs also have a very low level of Department for Digital, Culture, Media of cyber-crime, making it difficult awareness about cyber insurance and Sport (DCMS) show that 46% of to set premiums. We also know in general. Terminology can often businesses have suffered at least one that emerging cyber threats such be confusing, as can understanding cyber-attack or breach within the as ransomware are becoming the differences between policies past 12 months. Given the frequency increasingly random, affecting in relation to coverage and policy of cyber-crime, it is perhaps no surprise thousands, if not hundreds of exclusions. A poorly informed SME that the UK’s National Cyber Security thousands of businesses at the same who doesn’t understand what cover Centre says it is a matter of ‘when, time. they need means they are far less rather than if’. confident in engaging with brokers to So if insurance can help businesses discuss their requirements. Insurance is just one measure that mitigate some of the main impacts businesses can put in place to reduce from cyber-crime, why is uptake so We also hear some SMEs tell us that their vulnerability to cyber-crime. Since low? they already have coverage through the introduction of GDPR in 2018, more an existing business insurance policy and more businesses are enquiring At the Police Digital Security Centre or, that their Managed Service about policies, with three-quarters we speak to thousands of SMEs each Provider offers this this as part of their of those taking one out, doing so in year and our experience tells us that contract. However, in our experience, order to gain access to legal support there are four or five reasons why very few SMEs are able to describe following a breach. Other reasons businesses decide against taking what level of coverage they have include insurance against loss of out a cyber policy. Firstly, there is and what exclusions apply. Similarly, earnings or profits (68%), insurance a significant lack of awareness by and perhaps a symptom of an against loss of data (67%) and help SMEs about the threat they face emerging market, SMEs often find with incident response following a from cyber-crime. We often hear insurers offering them a ‘one-size- breach (46%). Just over one-quarter businesses tell us that ‘it won’t fits-all’ policy, rather than a more purchased insurance to help them happen to me’, mostly because they personalised policy that meets their with reputation management. don’t understand the value of the specific needs. However, the scale of cyber-crime information they hold or think they are presents some unique challenges too small to be a target. Getting SMEs Increasing the take-up of cyber to insurance industry. For example, to understand where and how they insurance must be a priority for the percentage of cyber-related are at risk is a huge challenge and claims paid out by insurers is very 38

CYBER The Police Digital Security Centre (PDSC) is a not-for-profit organisation, owned by the police, that works across the whole of the UK in partnership with industry, government, academia and law enforcement. It was established as the London Digital Security Centre in 2015 by the Mayors Office for Policing and Crime (MoPAC) to help small and medium sized businesses across the capital reduce their vulnerability to cyber crime. In 2018, LDSC was taken over by Police Crime Prevention Initiatives (PCPI) and given a national focus, becoming the Police Digital Security Centre (PDSC). the industry, business groups and aimed specifically at SMEs, that will Making cyber insurance a requirement government. To achieve this, we give them a better understanding of for public sector tenders would help suggest that insurers consider the cyber resilience, as well as help them drive change, much in the same way following steps which will help SMEs make more informed choices about Cyber Essentials has become the protect themselves against the most the insurance coverage best suited to minimum technical requirement for common types of cyber-crime. their individual needs. doing business with the public sector. First of all, insurance needs to be part Government could also follow the of a wider cyber resilience toolkit for Positive messaging about cyber example it set in response to flooding businesses rather than a standalone security is also important. We know by creating a central fund to help product. Including it among from over 30 years of crime prevention, those businesses most affected by a awareness training, technical tools scaring people into taking action cyber-attack or breach – subject to and other materials will help embed doesn’t work. Instead, messaging strict conditions for eligibility. insurance firmly in the minds of SMEs should be much more positive about when they look at what they can do to the business benefits of good cyber With cyber-crime continuing to grow, reduce their vulnerability. security. If the SME can see how the insurance industry is uniquely implementing basic control measures, placed to be at the forefront of Another positive step the market including cyber insurance, can help leading the fight against a constantly can take is to help SMEs better them grow, then we are far more likely evolving threat. As a greater number understand the terminology used by to achieve a sustainable change in of businesses embrace digital insurers when talking about cyber behaviour than continuing to push out technology, education, awareness security. A better informed SME is messages that seek to alarm. Similarly, and access to the right tools will help likely to have a more positive view using real-life examples as case studies the Government achieve its strategic of insurance if they understand the can help make it more relatable objective in making the UK one of the language. We’re addressing this to SMEs, particularly when trying to safest places to do business online. in partnership with London Market explain to an SME why a stand-alone LMForums (LMF) who have established policy may be more appropriate than Simon Newman a Cyber Insurance Working Group, a standard one. Head of Cyber & Business tasked with developing a Buyer’s Services Guide for this class of business. By the Finally, there is an opportunity for The Police Digital Security end of the year we hope to have Government to be more proactive. Centre a comprehensive, yet simple guide 39

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My experience WFH The day I heard that we had One thing I really miss is being out and what you want to achieve during the to work from home for an socialising with people, so once the day or week helps massively, whether extended period of time was nerve- rules were relaxed I saw my friends it’s work related or personal. racking as I didn’t know what a few times which really brightened to expect, not only because I’ve my days but didn’t help with saving My company and team have been never worked from home but also money. I can’t wait to go on nights out really supportive during this period because I had only joined my team with colleagues again but who knows which has made working so much two months prior. It’s been a little when this will be possible. easier. I’m really looking forward bit of a roller-coaster, I have to heading back to the office in days where I really enjoy it and I think the hardest thing during September. I have opted to split my other days not so much. lockdown has been dealing with the week with being in the office and Black Lives Matter movement. As working from home, so It should be an So yes, over time, lockdown began a person of colour and being from interesting experience and if anything, to feel mundane as I spent all an East African heritage, it has all I feel lucky to live in such a unique day and most evenings in front of hit home. I really do hope that the time. my screens. However, I began doing conversation does carry on, even if it yoga and to my surprise my mornings feels uncomfortable, and together we winner - LMForums are much less lethargic and very can make a change. young person of energetic. I have also started to read the year market more and listen to podcasts - mainly During this lockdown, I have honestly people awards 2019 about finance, self-development and changed as a person. For one, I innovation. learned how to procrastinate less, and Hanan Guthmy I definitely believe having a diary of Underwriting Assistant, Private Clients Brit Insurance 42

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PEOPLE Beyond hurricanes There is an adage that no plan survives first departments did whatever they could to make sure we contact with the enemy. Having spent several were ready. Countless hours of support were provided by years running IT for a newspaper in Miami, I know professionals fielding calls in their kitchen or with a toddler that when disaster strikes, disaster recovery and on their lap. Despite the ‘realness’ of this new world, or business continuity plans rarely hold up to the perhaps because of it, the market finally implemented experience on the ground. And while I have moved the kinds of change we have been talking about for years whole operations from one city to another literally and in the end, I think was a little surprised that all of it was overnight, I had no idea exactly how a global easier than we ever thought it could be. pandemic was going to unfold. It almost made me long for the good old days when hurricanes were As the Underwriting room re-opens and many of us return the worst I had to worry about. to the City, I hope we remember that the past few months were us at our most authentic. Forced to find new ways Well in advance of the WHO’s designation of COVID-19 to engage while confronting a shared reality that left us as a pandemic, we began working the problem. isolated but not alone. The true strength of this market has Infrastructure designed to support a few hundred remote always been its people and culture. Whatever is next, it will workers now had to support every worker. Information be that foundation we must continue to build on. security fit for a central office now needed to address a completely different threat landscape. Video conferencing Christian Kitchen and digital collaboration were no longer nice to haves but Head of Technology and Innovation critical to our continued operation. Miller Our focus on resilience as a guiding principle in the design Christian is Head of Technology and of our systems left us well-positioned to respond. Bandwidth Innovation at Miller and is accountable for strategic, was increased, new solutions deployed to enable digital operational, and innovation focused activities, as well as collaboration, and more training and support was provided data and digital product development. He has worked in in a month than we would have done in a year. All the technology for more than 25 years, with a strong focus on hardware and software did exactly what it was supposed software development and strategic innovation. to do. But that is not the lasting reflection I will take from this pandemic. From the first reports of the virus to this very moment, I have never seen people pull together more quickly or kindly. From the earliest days, people across teams and 45

PEOPLE Working It’s Friday the 13th of March 2020 and I’m finalising plans for a trip to our USA offices to launch RACE@ flexibly? Beazley, the group’s new employee network for race & ethnicity. Unfortunately, I learn that evening, that we will close our offices globally from Monday 16TH March, the day of the main launch event. My disappointment of having to cancel the launch was the start of my mix of emotions about the new virtual way of working. Given that I live some 90 miles from I’ve enjoyed many elements of the look forward to us beating the virus the City, my disappointment current experience and I’m glad so that our market overall and each was eased in part by the pleasure that it’s forced our market to explore of us individually can find the right of avoiding the daily four hour return new ways of working, possibly years balance between office and remote commute to the office. My first few before we thought we were ready to working. Then we can experience weeks of setting up office from home do so. However, I have missed the what permanent flexible working went smoothly. Spending more time opportunity of being with colleagues, really means and explore the benefits with my wife and daughters was bouncing off each other’s energy and it should present to our industry and great (I think the novelty wore off for the buzz of City life. As an example, our customers. them more quickly though!) but things George Floyd’s murder and the became trickier when the children resulting Black Lives Matter movement Rob Anarfi started schooling from home. From happened during lockdown. During Global Head of me trying to be an IT service desk to those very difficult few weeks it Compliance the battle for broadband priority, we would have been helpful to be with Beazley had numerous challenges to contend colleagues and friends to support with. We have since upgraded our each other in person. Rob has been Beazley’s global Head broadband so there is plenty to go of Compliance for five years, having round. Another observation I’ve made is that originally joined the group in 2012 as flexibility doesn’t work without variety. Group Head of Internal Audit. Before After months of enjoying spending Not having the option to work from joining Beazley, Rob held roles at the more time together as a family, my an office or in person with colleagues (then) Financial Services Authority wife returned to work. Since then, I’ve when necessary, is as inflexible as one and held senior audit roles at Allianz, been combining work with caring for being based in an office and unable Zurich and Aviva. He qualified as a the children at home. That’s been a to work remotely occasionally. So I chartered accountant with PwC. role reversal for my wife and me - I’m sure she’s secretly enjoyed watching me go through that learning curve! 46

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PEOPLE Am I on Mute again? That now unforgettable day on March 23rd: a juxtaposition of Stephen King‘s thrillers and George Orwell’s dystopian future; surely one which only the best authors could ever conjure? No, this became our reality. COVID-19 meant I, like many younger employees, decided to ‘flee’ from our London abodes and seek refuge in the family nest, as we all battened down the hatches in a more green and spacious backdrop. Expecting this all to blow over in two weeks; how naive I was. Reflecting on how far we have friends interchangeably; after all must use this opportunity to make come from those initial dark days it’s no secret we in Insurance are great strives forward rather than when toilet tissue was a luxurious incredibly social beings. Whilst resort to the old norm. commodity, remote working, working instant messaging and video from home and other synonyms conferencing apps have done a Indeed, remote working has been have lasted longer than expected. stellar job at facilitating this digitally, great, but I for one, am ready to be For many, this untethering from the it personally isn’t quite the same. back in EC3… at least part-time — in office, a first in their careers. The inevitable ‘you’re on mute’ is this brave new world. becoming less amusing. The office Arguably, remote working is a great allowed for those Americanised Kieran Quigley concept. I have breathed a sigh of ‘water cooler moments’, where Cyber Underwriting relief from avoiding the commute informal knowledge is transferred, Assistant and being back in the family home relationships strengthened and team Hamilton Insurance has allowed for some long overdue innovation really took off. Group bonding and an appreciation of the little things in life. We have all finally Looking ahead, I think we can all Kieran is currently a achieved that work life ‘balance’ attest to how remarkable Insurance Lloyd’s graduate, that we harp on about… although has kept calm and carried on, advancing his Cyber Insurance who knows what it truly means. producing a more agile, innovative proficiency through broking and and digitally focused market; a presently a Cyber underwriting role. Wearing rose-tinted glasses, testament to our industry’s talent. Moreover, he is a London Insurance admittedly, I have begun to We can expect flexible working Life Ambassador and progressing yearn for days in the office, to no longer be a “maybe”, but a towards being ACII qualified. reunited with colleagues and “definitely”, introducing a different dynamic. Proving we can, we now 49

When the music changes, so does the dance Don’t let your next crisis be a talent one… One of the first ‘office blocks’ in the City of London appeared in the mid 17th Century on Leadenhall Street where the Lloyd’s building stands today. The occupier, the East India Company, continually expanded on the site until its demise in 1862. During its occupancy, and beyond, the area swelled with corporate offices, physically consolidating the City status which endures today. Fast forward three centuries and the future of work may evolve. It two world wars to when, for the seems that uncertainty itself is set to first time ever, offices across the UK be the permanent ‘new normal’, were ordered to close their doors as positioning speed, information and a global pandemic was declared. A collaboration at the core of future quiet descended on the City. resilience and performance. However, this is taking place within a complexity But, galvanised around this common of challenges. The latest McKinsey enemy and the need to find ways to insights report states that firms should continue business during the crisis, EC3 plan to have 70% of their workforces workers adapted surprisingly well in as permanent remote or hybrid- finding ways of operating remotely. remote workers, which has indications Many firms have found sales suffering for organisational structure, culture, as the crisis continued, but workers leadership and talent. otherwise found ways to adapt. Sheridan Resolutions recently While the lockdown initially sent sponsored the LMForums New shockwaves across the City, the World Series looking at the real test for firms is now, as we start changing workplace and the to see the first indications of how impact on the people who comprise the London Market. Discussions during the event highlighted that the priorities of management were supporting wellbeing, ensuring connectedness to support belonging and to retain and evolve organisational culture 50