Your computer costs are paid by your property insurance, but the loss of business income as a result of a cyber-related attack is not covered. No business interruption coverage or property damage caused by a cyber event is covered by a property policy. Property insurance is exclusively covering physical damage, not software corruption or any of the other things that a cyber policy can cover. A number of insurers are now working to develop offerings that are more comprehensive and are overlapped with cyber policies. But that is just an emerging area. Folk will say, just tie that in with your property policy and that’s easy to do. No, it isn’t. Property is not set up to cover it.
Understanding Political Risk in Today’s Business Environment
Whether you succeed with your first attempt or get back to the drawing board, the thrill of competition waiting around the corner is a different high. Alluring, seductive, and addictive. Nearly two thirds of our clients who continue after failing, choose the very last attempt because there is nowhere left to go then. It’s more pressure than ever, probably your last chance to run. cage’s Not meant for the weak-hearted is it?
What are the trends that you believe are most underestimated and could have the greatest impact on the region and its business environment? First and foremost, the speed of fiscal consolidation in the Gulf has to disrupt regional economies profoundly. In exhausting the rentier model, it’s also likely to inspire serious thought on a new possible blueprint for the region.
My personal bet on headline disrupter, though probably it won’t surprise anyone now, is the coming population decline in most of the region; only Yemen will still have a growing population by 2050. Finally, the water subsector in the main environmental sector in the region (the competition for, and potential growing shortage of, water as a constraint on business won’t be surprising to anyone as a risk).
The Terrorism Threat Landscape and Business Vulnerability
What’s more, what there is of terrorism insurance tends not to be easily scalable. Companies will typically have estimated the maximum loss they could sustain from the event of a terrorist attack (at a site or after an international event), narrowed that figure down to how much of a loss they could fund from their books, and then sought cover for the rest, ideally using data generated by the losses paid following the September 11 attacks to construct a more accurate model of the liabilities a future attack could present.
The entire process doesn’t lend itself to a one year commitment to conditional yacht racing or eventing on the advice of the US State Department or that of Sir Ranulph Fiennes.
It’s like Terrorism insurance not paying out until after a specific event. Another example is, similar to many Crisis (aka Reputation) Management policies, it requires at least three or so first party coverages to be triggered before they will respond. So if a company has standalone Cyber, Terrorism, and Political Risk policies and a Cyber attack occurs the Terrorism and Political policies will respond but the not trigger the Crisis Management policy.
Political Violence and Terrorism Cover: What’s Included
I’m not sure anyone really knows, but probably hundreds of years old. It’s tale insurance. Enlisted to cover losses ensuing from political riots, it’s been evolving since to combat a fascinatingly nebulous rogues’ gallery of extremists, subversives, rebels, revolutionaries, seditionaries, insurrectionaries, mutineers, pathogens and cyber pirates.
It is also an insurance where clients have been debating vociferously since the Boston Tea Party whether the loss in face of terrorism is from property damage not dramatic loss, which are insure the revenue. Insurers prefer the former, clients the latter.
An authoritative approach with excellent, controlled, detailed market presentations and open meetings are very important elements of a successful purchase strategy that could enhance terms and conditions, remove sub-limits, and possibly increase overall market capacity for appropriate risks. Preparing realistic pre-renewal expectations here and in London (the two markets that matter most on Direct & Treaty business to sell a unique tailored Dubai Market product) and then driving the detailed negotiation of those onto paper well before the renewal lays the groundwork for a successful risk transfer.
Then, answering underwriters’ questions and putting faces to the local supported markets with open, detailed conversations with underwriting concerns immediately after submission is key to the Direction & Treaty reinsurance process. Fall of the Towers briefing is an excellent opportunity to do this. This is a well-timed way to ensure that all your potential supports know that you have a major renewal pending.
A formal submission will generally be requested and must include the Fall of the Towers questionnaire at the back-and soon. Do not expect an easy slide just because you have had good support before or enjoy very healthy services-only markets. Support must be earned every program year. Good luck!
Key Coverage Components
What is the actual price we pay for a handheld silicon brain? What, on the other side, is the value of a brain? If you had to do without one type of piece from the category of knights, bishops, rooks, and queens, which would it be? Which of the remaining six is the least valuable? In the overall wetware game, where do carbon and water stand? Give me a check: is the king in check?
Why UAE Businesses Need This Protection Now
I guess we’re more mature in handling our geopolitical challenges than our phishing ones.
This raises the question of whether we can see insurance as a form of betting and, if so, what is being wagered on? If anything, I’d say it’s more like going to a casino, you pay a relatively small amount but know that if an extreme event occurs you hit the jackpot.
Selecting the Right Coverage for Your Business
Political violence in the MENA region is as diverse as the region itself. How would you decide what political violence insurance might cover in the MENA region? I guess no one knows but you could probably look at insurance programs in the region, the coverages and definitions that they use that may apply to the types of events or risks you think you are susceptible to.
What Coverage Do We Need? Who Is Best to design and service it for us?
Building Comprehensive Business Resilience
After insurance companies listened to Congress and began offering separate coverage, is now the insurance, not the debtor, who assumes the majority of the obligation for terrorist events. Buyer beware, though, as the wording for this kind of protection differs to some extent from company to company and you really should do your homework to make sure you’re getting the coverage you need, along with double checking any exclusions to avoid discovering too late that you didn’t get anything after insurance rates rose too.
