Modern Insurance Magazine Issue 65

ASSOCIATIONS ASSEMBLE
Anthony Thomas Hudd Hughes
Title: Chair & CEO
Title: National Technical Manager
Association: The Credit Hire Organisation
Association:
(CHO)
Nationwide Bodyshop Repair
Association (NBRA)
Cyber Risk in
Insurance
Cyber risk has now established itself firmly in
the lexicon of insurance risks that companies
need to account for. It underscores how
vulnerable we have become to technology
glitches, whether deliberate or accidental.
A cyber policy covers the risk of financial loss,
disruption or damage to the reputation of an
organisation from failure in its information technology,
and there are numerous examples of businesses –
including some high profile ones - which have been laid
low by technology outages.
Credit hire companies are no different. We have a heavy
reliance on technology; from our call centre operations
and IT that protects customer data to the technology
that runs our operations, accounting, HR and
marketing. Our members have to protect themselves
against data breaches and ransomware attacks like
everyone else.
No amount of cyber protection can prevent data
breaches caused by humans. There is no hard
information available from insurers, but there
are instances of employees in insurance claims
departments appearing in court after printing
off customer data on the QT and selling it on to
unscrupulous individuals.
There’s a larger point here. These days, national
intelligence agencies place an increasing emphasis on
technology-enabled data gathering to monitor events
and capture threats against the state, but critics say
this makes them blind to risks that would be spotted by
old-fashioned spy craft, such as agents on the ground.
Technology companies would have us believe that IT
is the key to everything. Yet wholesale adoption of
technology risks giving us a false sense of security -
either by blinding us to criminal activity that doesn’t
use tech, or by exposing us to the catastrophic
possibility of the entire company falling over after a
systems meltdown. Fortunately, that’s where your cyber
insurance policy kicks in.
Mike Keating
Title: CEO
Association: Managing General Agents’
Association (MGAA)
MGAs Keep
Pace With Rapid
Regulatory Change
The Financial Conduct Authority’s
continued focus on customer service levels
across the insurance industry needs no
introduction. Its activity has resulted in
mounting pressure on firms to meet the
regulator’s Consumer Duty standards,
demonstrating that their products and
services offer fair value to customers.
Whilst the FCA’s aims are highly commendable - after
all, who could disagree that the industry should be
focused on providing a first-class service to customers?
- these regulatory demands are creating significant work
for MGAs, who are already having to operate against
the backdrop of an uncertain economic and political
environment.
In spite of this, the regulatory burden continues to grow,
with the FCA now having confirmed that it will also be
conducting a review into the ways in which claims are
being handled across the market later this year.
As an industry association, we recognise the need for
the regulator’s consumer focus. But we also recognise
just how complicated it can be for firms to keep up
with what is, without doubt, an increasingly complex
regulatory environment.
This is why, at our recent Annual General Meeting and
following feedback from our 2023 Member Survey,
we announced that we are upgrading our regulatory
support for members. This will ensure that we are
providing best-in-class, proactive advice to help our
members meet the FCA’s guidelines and stay ahead of
any future changes.
Our initiative includes the revamping of our memberdriven
programme of Learning & Insights, Member
Forums and Compliance Insights sessions, giving the
MGAA’s members access to the very latest expert
analysis and guidance.
To find out more about the regulatory support on offer,
visit our website or follow us on LinkedIn.
MODERN INSURANCE | 33