Chapter 6 Flashcards
Key Term: Any risk of financial loss disruption of business, or damage to an organization’s reputation due to a failure of its information technology systems.
Cyber Risk
List FIVE (5) pieces of information that may be included on a brokerage’s website.
Contact information
Mission and/or vision statement
History of the brokerage
Staff directory
Information on the products offered by the brokerage
Insurance companies represented
Online quoting platform
Online customer service platform
Client resources
Webchat monitored by an artificial intelligence (AI) bot or a live individual
Blog or other written communication for visitor education
Customer testimonials
Links to other related websites; for example, links to the Insurance Institute of Canada (IIC), the Centre for Study of Insurance Operations (CSIO), or Insurance Bureau of Canada (IBC)
What should management analyze when conducting a technology analysis?
The current system
The constraints of the current system
What functions are lacking and needed
Proposed replacements or enhancements
Short- and long-term future requirements
Measurement standards for the performance of the various systems
List the direct and/or indirect financial losses an organization can face from cyber risk.
Direct: Costs to fix and restore systems, data, and software
Direct: Ransom or extortion payments
Direct: Funds directly lost due to fraud
Direct: Costs to defend and settle lawsuits
Indirect: Extra expenses to manage the crisis, such as communications and public relations costs
Indirect: Accounting and other professional fees to determine the extent of the loss
Indirect: Loss of reputation (if customers feel they cannot trust the organization to hold their personal information securely, they will move their business to other brokerages)
Application Question
Arya is the chief operating officer of a large brokerage based in Vancouver. She has been tasked with leading the technology innovation committee at her firm. A sales rep from a technology company that sells automation systems to various industries has recently contacted her about giving a presentation on their new broker management system (BMS). Arya decides to do some research about existing insurance brokerage focused automation before meeting with the rep so she can compare their product with what else is available in the market.
Question 1
What kinds of automation are generally of interest to a brokerage?
Information extraction: Extracting various client information from client or prospect databases
Information sharing: Sharing information with insurers, including for submissions, quotations, electronic documents (edocs), claims reporting, and communication
Communication: Communicating with clients, insurers, and other business partners
Accounting and reporting: Facilitating the accounting function and generating reports for business analysis
Ecommerce: Enabling ecommerce
Application Question
Arya is the chief operating officer of a large brokerage based in Vancouver. She has been tasked with leading the technology innovation committee at her firm. A sales rep from a technology company that sells automation systems to various industries has recently contacted her about giving a presentation on their new broker management system (BMS). Arya decides to do some research about existing insurance brokerage focused automation before meeting with the rep so she can compare their product with what else is available in the market.
What are the usual functions of a brokerage management system?
Client relationship management
Business-to-business electronic data interchange (EDI) for placing new business, endorsements, and renewals
Generation of insurance documents including policy documents and form letters
Back-office accounting with customized report generation
Reports on BMS data
Application Question
Arya is the chief operating officer of a large brokerage based in Vancouver. She has been tasked with leading the technology innovation committee at her firm. A sales rep from a technology company that sells automation systems to various industries has recently contacted her about giving a presentation on their new broker management system (BMS). Arya decides to do some research about existing insurance brokerage focused automation before meeting with the rep so she can compare their product with what else is available in the market.
What is usually included in a client file in a BMS?
Client contact information
All broker-client interactions, including emails and phone calls
All client policy documents, past and present, including new applications, new policies, mid-term changes, renewals, cancellations, and any other document sent to or received from the client or insurer
Claims history
Abeyance tracking to follow up on outstanding matters relating to the client’s policy
