Study 9 - Emerging Issues and Trends in Insurance Flashcards
What is cyber risk?
Any risk of financial loss, disruption of business or damage to an organization’s reputation due to a failure of its information technology systems.
Areas of concern with cyber risk for companies
-banking and financial transactions data
-information intelligence
-intellectual property
-customer identification data (identity theft)
Types of Cyber Risk
-Denial-of Service (DoS)
-Theft of Intellectual Property
-Intrusion Offenses
-Attacks to Critical Infrastructure
-Distributed Denial of Service Attacks (DDos)
-Extortion
-Mischief to systems
-Web Defacement
-URL hijacking
-Corporate Espionage
-Data Integrity Compromised
Causes of loss (cyber risk-who)
-disgruntled employees (employees, cleaners and contractors- greatest risk)
-hackers
-virus writers
-criminal groups
-terrorists
shoulder surfing
Causes of Loss (cyber risk - how)
-Business Interruption
-Virus/Trojan horse/DDoS/worm
-Loss of Reputation
-Contingent Business Interuption
-Financial Fraud
-Theft of customer data
-Bot Scams
-Identity Theft
What is Cyber Crime?
a criminal offence commited through a computer or internet that causes damage to the vitims computer system, network or data
-denies access to data or services
Amendments to the Criminal Code due to cyber crime
Following activities are now illegal:
-using a computer without authorization
-Making mischief in relation to data
-Posession a tool/device to obtain information without permission
-Stealing telecommunications service
Strategic Decisions business leaders should make
-IT spending
-prioritizing projects
-security expectations
Security Software protection includes
-firewalls
-intrusion-detection systems
-authetication devices
-anti-spam software
-anti-virus software
What is Risk Prevention
-Key to preventing and reducing Cybercrime
-Should Form part of Corporate Governance
-Part of the larger Business Plan
Risk Prevention (Business Plan)
-Maintain and Update Technology
-Install and maintain anti-virus software
-enable firewalls
-install software patches asap
-use outside expertise when required
-disable access when employees are terminated
-Maintain Vigilence on the Network
-Regular diagnostic testing and monitoring
-analyze operations to identify vulnerable IT areas
-remove unused software
-remove unused user accounts
-monitor employee online activity
-deal with threats
-implement a forensic response plan at first sign of attack
-devleop busines continuity plan
-Institute Employee Protocols
-train employees in security awareness
-document policies and procedures
-implement passwords
-limit access to confifential and sensitive information
-lock computers when away
-do not allow donwloads
-require employees to sign a user agreement
Cyber Crime Coverage - U/W information
-Technology protocols
-Employee User agreements
-Procedures enforcing IT security
-Data Recovery Plan
Define epidemic, endemic,pandemic
Epidemic - flu in a large but confined area
Endemic - contsant presense of deisease in an isolated area, ex Malaria
Pandemic - highly infectious disease over a large are
How to Prepare for a Pandemic
-industires that rely on foot traffic will be the most affected
-OPERATIONAL Risk - people, absenteeism, support for staff, management policies, issues with renewing/writing business
-ECONOMIC Disruption - how supply chain is affect
-How people will react, will the travel
-DECONTAMINATION MEASURES
-BUSINESS CONTINUITY PLANNING
How would different insurance apply to a Pandemic?
Property - carefuly analysis of wordings, but not likely coverage afforded
Liability - lawsuits may arise if able to prove a business were responbile for the spread and illness
Business Interruption - may be an eligible coverage depending on wordings
What is Blockchain?
-DLT Distributed Ledger Technology
-transactions to record and transfer assets between 2 or more parties
-digital representation
-not easily tampered with
-Public (Bitcoin) or Private
What is a smart contract
-uses DLT technology
-self-executing as the code is built in
-makes payment automatically when required
Insurance Uses of Blockchain
-Customer Identification
-Underwriting and Claims Processes
-Insurance Fraud
-Reinsurance
-Micro Insurance
-Parametric Insurance
-Real-time insurance
