The CHART Exchange February 2019

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6 Glenn W. Clark, CPCU, Publisher CHART Exchange Earliest Adopter

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CHART 2.0 - A REBOOT! THE 1ST REGIONAL MEETING OF THE RE-IMAGINED CHART EXCHANGE FEB 25TH 2019

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STUDY: GLOBAL RANSOMWARE ATTACK COULD COST BUSINESSES ALMOST $200 BILLION

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LLOYD’S APPOINTS FORMER U.S. SENATOR AS NEW MEMBER OF THE COUNCIL

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NEW APPOINTMENTS FOR LLOYD’S COUNCIL

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SIX BEST WAYS TO PROTECT YOUR ORGANIZATION FROM INSIDER CYBER RISKS

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SELF-DRIVING CARS WILL LIKELY INCREASE PRODUCT LIABILITY LITIGATION

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MARITIME PRACTICE GROUP LEADERS FROM FOWLER RODRIGUEZ JOIN WILSON ELSER

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KROLL ANNOUNCES COOPERATION AGREEMENT WITH TEMPEST SECURITY

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TOP TECH TRENDS TAKING OFF IN 2019

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HOW TO AVOID COMMON WINTER DEVICE ACCIDENTS

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NEW YEAR, NEW ROLE?

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SPECIAL REPORT: THE EVOLUTION OF HR AUDITS

4 REASONS TEENS ARE WAITING TO GET THEIR DRIVER’S LICENSE

Cover Photo - Lloyd’s of London, Lloyd’s building Lutine Bell, CC BY 2.5 The Lutine bell, housed in the rostrum in the main Underwriting Room

SPECIAL REPORT: PG 36

R M Media Ltd Attribution-ShareAlike 3.0 Unported (CC BY-SA 3.0)

THE EVOLUTION OF HR AUDITS

FEBRUARY 2019 VOLUME 4 - ISSUE 2 Publisher: CHART Exchange Glenn W. Clark, CPCU Membership Services Kate Boyle Advertising: Kate Boyle Managing Editor: Kate Boyle Contributing Editor: Frank Huver Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.

CHART Exchange

info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:

PREFER TO READ IN PDF FORMAT? DOWNLOAD THE PDF VERSION HERE

ADVERTISING IN THE CHART EXCHANGE MAKES SENSE: CALL KATE: 302.765.6056

EVERYBODY KNOWS ONE Meet Mr. Inappropriate. He is the King of unfiltered commentary. There is no remark too crass or topic too sensitive for this guy. Worse still, he may be working for one of your clients.

The recent Hollywood scandals and resulting rise of the “#MeToo” Movement has made people more sensitive to the prevalence of harassment and other wrongful acts in the workplace. There was a time when otherwise harmless comments from someone like Mr. Inappropriate would have either been brushed off or ignored. Now they may be interpreted to have a more nefarious meaning. This perception can quickly turn into legal action. The cost of defending against such a lawsuit – even a groundless one – could be financially devastating.

Let Rockwood Programs help protect your clients. Our Employment Practices Liability Insurance (EPLI) product protects companies from allegations of discrimination, wrongful termination, harassment, and workplace bullying. Coverage can be further enhanced to protect your client against alleged violations of the Immigration Reform Control Act, Wage & Hour disputes, and Third Party Wrongful Acts.

Visit us at www.rockwoodinsurance.com to learn more

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

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MESSAGE FROM THE EARLIEST ADOPTER

CHART 2.0 A REBOOT! After months of preparation, our team is ready to turn our good intentions into action. The “Coming Out” party is on February 25, 2019 – CHART’s inaugural regional meeting.

The session will be hosted by Wilson Elser (our oldest and most committed partner) in their Dallas TX office.”

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eaders of our publication have seeing a series of articles written about the impending launch of CHART 2.0 – a “re-boot” for the organization conceived to expand the existing U.S./London marketplace through the identification and pursuit of new business opportunities. CHART will move away from many of the collegial aspects that originally defined us in favor of a more business-oriented model designed to deliver optimal benefit to those who work with us.

After months of preparation, our team is ready to turn our good intentions into action. The “Coming Out” party is on February 25, 2019 – CHART’s inaugural regional meeting. The session will be hosted by Wilson Elser (our oldest and most committed partner) in their Dallas TX office.

Unlike most other industry events, agencies will not be assessed a registration fee to attend.

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Glenn W. Clark, CPCU Publisher & Earliest Adopter

We recognize how busy entrepreneurial-minded business owners can be, so we are limiting the meeting to a single day. With that said, there will be a significant return on our attendee’s investment of time.

HERE ARE THE HIGHLIGHTS OF OUR AGENDA: 1. An Introduction to the “New” CHART. The organization’s primary focus will be to help insurance agencies succeed within the U.S./London market. The resources we now have at our disposal to help us achieve this objective has grown substantially; it includes business-placement capabilities through an in-house brokerage operation.

www.chart-exchange.com

2. Lloyd’s Updates. Interested in learning more about the London market? A representative from Lloyd’s America will be on-hand to provide an overview of the world’s oldest and most recognized insurance brand.

3. Cyber Liability. Rarely a day goes by where some news story about a data breach isn’t making national headlines. The experts at Wilson Elser will moderate a discussion on this sensitive topic.

4. Program Incubation. Have a great new program idea…but not the authorities or administrative bandwidth to distribute on a national scale? CHART can provide options to help expedite launch.

5. Securing Delegated Underwriting Authorities. The process of securing binding authorities from Lloyd’s is somewhat of a mystery to most domestic insurance agencies.

Our team will make things much clearer with a step-bystep walkthrough of the entire procedure.

6. Use of Fronting. Our industry stubbornly clings to misperceptions about the use of surplus lines; these misguided views can have an impact on product distribution. Learn about the strategies that are available to offer a Lloyd’s-underwritten program using admitted paper.

www.chart-exchange.com

7. Impact of the #MeToo Era. There are a growing number of liability exposures related to the employer-employee relationship.

Our hosts weigh-in with a review of the matter.

8. Distribution Support. CHART can help agents find new distribution channels for their products. Learn more about the opportunities that CHART Markets and our e-magazine advertisements can provide.

9. New Program Submission. Find out how CHART can assist in submitting new program ideas to Lloyd’s. We have the expertise available to build a proposal that will gain maximum influence in the London market.

10. Vendor Partnership Model.

We seek committed vendor partners that have Londonspecific business strategies. We have purposefully retreated from the trade show models of the past to one that is much more collaborative. Our new structure seeks more individual dialogue, content for our e-magazine, and a storefront in CHART Markets (www.CHARTmarkets.com). The new vendor model will serve to reinforce our core theme (Ex’Change: “to give up something of value in order to obtain something of greater value”).

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Our meeting on February 25 will be a busy one, but we have still set aside time for individual discussions. Two cocktail receptions – one held Sunday afternoon, the other at the event’s conclusion – will provide a forum for networking in an informal, relaxed atmosphere.

Are you interested in being a part of our inaugural event? Visit the CHART website (www.chart-exchange.com) to learn more. You can also write to me at info@chart-exchange.com with specific queries. And don’t worry if you can’t make our February session.

We are planning two more regional events this year. One will be on the east coast, the other in the west.

Glenn W. Clark , CPCU CHART’S Earliest Adopter

FEBRUARY 2019

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NOW HERE’S A REAL SHOCK… The first firearm liability product that can be sold by independent insurance agents!

It is estimated that nearly 80 million Americans own at least one firearm. But what happens if a law-abiding citizen is actually forced to use that weapon to protect themselves, a loved one, or their personal property? Many homeowner policies specifically exclude firearm use — even in self defense — as a covered exposure, deeming it to be an intentional act. That leaves the gun owner personally liable for legal expenses, bail bond costs, and any judgments awarded through a civil action.

As an insurance agent, you are in the best position to explain the significant personal liability exposure faced by your gun-owning clients. Unfortunately, you haven’t been able to help your clients by offering a product to address this need — until now.

Rockwood Programs now offers a firearm liability policy designed to protect insureds against civil or criminal actions resulting from the use of a gun in self-defense. It is the only one available in the industry that can be sold through insurance agents. A wide variety of limit options are available, ranging from $50,000 to $5 million. Annual premiums start at just $135.

Best of all, we make it easy for you to present the firearm liability product to your clients. An inventory of customizable sales aids is available, including marketing brochures, simplified self-rating applications, and more. Our team can even help provide product-specific content for your website!

Visit us at www.rockwoodinsurance.com to learn more We can also accommodate group accounts (police, security, gun clubs, etc.).

E-mail: president@rockwoodinsurance.com

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

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www.chart-exchange.com

EVENTS - CHART EXCHANGE

Join Us in Dallas and Become Part of CHART 2.0!

The first regional meeting of the “re-imagined” CHART Exchange will take place in Dallas TX on February 25, 2019. Save the date! The business-driven agenda will address such topics as:      

Review of all the new benefits and services available through the “re-imagined” CHART – including business placement capabilities through an in-house London brokerage operation.

Analysis of the London marketplace, presented by a senior executive of Lloyd’s America Discussion of the process required to secure Delegated Underwriting Authorities (“Tribunalization”) from Lloyd’s markets Strategies for implementing Lloyd’s-underwritten programs when admitted paper is required or preferable.

Addition/expansion of existing product distribution channels through CHART facilities (CHART Markets, CHART Magazine, etc). CHART will help you to GROW your program Available alternatives for those seeking to fast-track the launch of new programs via CHART’s Incubator initiative

The meeting will be filled with a workshops, presentations, and networking opportunities for every agency attendee in a more focused atmosphere. The forum we provide will allow for you discuss your program ideas with partners who only succeed when you do. Come in the night before and enjoy a welcome reception with all of the presenters. A detailed agenda will be sent to every registered attendee. In order to give everyone the attention they deserve, participation will be limited to 50 agency attendees.

Can’t make the February meeting but are interested in getting started now? No problem!

CHART will be holding two more regional events in 2019 - one on the east coast, the other on the west. To reserve your spot, contact us for details.

For More Information, Contact: Glenn W. Clark, CPCU Glenn.clark@chart-exchange.com

Meeting Location: Bank of America Plaza 901 Main Street, Suite 4800 Dallas TX, 75202

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within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives.

M&A Services is

NEWS - LLOYD’S OF LONDON

STUDY: GLOBAL RANSOMWARE ATTACK COULD COST BUSINESSES ALMOST $200 BILLION A global ransomware cyber-attack could cost $193bn and affect more than 600,000 businesses worldwide, according to a new report from the Cyber Risk Management (CyRiM) project, the Singapore-based public-private initiative that assesses cyber risks, of which Lloyd’s is one of the founding members.

I

n the report’s scenario, the attack is launched through an infected email, which once opened is forwarded to all contacts and within 24 hours encrypts all data on 30 million devices worldwide. Companies of all sizes would be forced to pay a ransom to decrypt their data or to replace their infected devices.

The report, ‘Bashe Attack: Global infection by contagious malware’, shows a ransomware attack on this scale would cause substantial economic damage to a wide range of business sectors through reduced productivity and consumption, IT clean-up costs, ransom payments and supply chain disruption.

THE SCENARIO ESTIMATES THAT: Retail and healthcare would be the most affected ($25bn each), followed by manufacturing ($24bn).

Regionally, the US would be the www.chart-exchange.com

hardest hit with $89bn at risk. Europe could lose $76bn, with Asia losing $19bn.The rest of the world could lose $9bn.

Despite the high costs to business, the report shows the global economy is underprepared for such an attack with 86% of the total economic costs uninsured, leaving an insurance gap of $166bn.

AMONG THE KEY FINDINGS: The report challenges assumptions of global preparedness for a cyber-attack of this nature and scale.

It highlights lessons for the insurance sector in terms of policy, legal and aggregation issues in cyber insurance offerings.

It also identifies opportunities for insurers to expand their business in insurance classes associated with ransomware attacks.

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To read the report visit www.lloyds. com/cyrimreport.

Dr Trevor Maynard, Head of Innovation at Lloyd’s, said: “This report shows the increasing risk to businesses from cyber-attacks as the global economy becomes more interconnected and reliant on technology. Companies must ensure they are better prepared for ransomware attacks, and that includes working with insurers to reduce the risks before they are attacked and ensure they have the right insurance cover in place to respond after the event. The reality for business is it’s not if you get attacked but when.”

Professor Shaun Wang, Director of the Insurance Risk and Finance Research Centre at Nanyang Technological University, added: “We are pleased to See Global Ransomeware Attack Page 47 FEBRUARY 2019

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NEWS - LLOYD’S OF LONDON

LLOYD’S APPOINTS FORMER UNITED STATES SENATOR AS NEW MEMBER OF THE COUNCIL Lloyd’s confirmed the appointment of former United States Senator John E. Sununu as a new member of its Council for a three-year term, beginning February 6, 2019.

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uring his tenure in the Senate, John served on the Senate Banking Committee, where he actively prioritised insurance issues, and the Senate’s subcommittee on Science, Technology and Innovation.

from the Massachusetts Institute of Technology, and earned his Master of Business degree from Harvard University.

His appointment to the Council ensures that Lloyd’s has outstanding US political He now acts as and regulatory a senior policy experience to advisor for Akin draw from, which Gump Strauss is essential for the Former United States Hauer & Feld LLP, significant amount of Senator John E. Sununu an international law business Lloyd’s does firm headquartered in the US. John’s in Washington, and holds office as experience and ongoing interest in a non-executive director for the technology and innovation will also publicly traded companies Boston help Lloyd’s seize new opportunities Scientific Corporation and Afiniti in the digital world.

Inc. He holds Engineering degrees

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TABLE OF CONTENTS

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NEWS - LLOYD’S OF LONDON

NEW APPOINTMENTS FOR LLOYD’S COUNCIL

A We are pleased to announce that Albert Benchimol and Victoria Carter have been appointed respectively External member and Working member of the Lloyd’s Council with effect from 1 February 2019.

Michael Watson, currently on the council, has been re-elected as External member.”

www.chart-exchange.com

lbert Benchimol is currently President and Chief Executive Officer of AXIS Capital Holdings Limited, a position he has held since 2012. He joined the company in 2011 as Executive Vice President and Chief Financial Officer.

He formerly served as Executive Vice President and Chief Financial Officer of PartnerRe Ltd. for a 10-year period, and was also CEO of Partner Re Ltd.’s Capital Markets Group business unit from 20072010.

Albert spent several years working for Reliance Group Holdings and for the Bank of Montreal in both New York and Toronto. He received a Bachelor of Science degree in Physiology and Immunology from McGill University in Montreal, and earned a Master’s in Business Administration at the same university. Albert is Chairman of the Bermuda Insurers and Reinsurers Association, and a member of the Insurance Development Fund Steering Committee. He speaks French and Spanish.

Victoria Carter has worked for the Lloyd’s market for 38 years, starting her career in medicine then moving to Reinsurance Broking in 1980. She joined Guy Carpenter in 2010 as Vice Chairman of International Operations and in 2016 became Vice Chairman of Global Strategic TABLE OF CONTENTS

Advisory. She also holds positions on the company’s executive committee and board. Prior to that, she was Chairman of UK and Europe at Towers Watson.

In 1992, she founded Dunn & Carter Ltd, becoming the first female founder of a Lloyd’s broking house. She is also the founder and driver of the Marsh & McLennan Your Professionals Initiative, which initiated a market-wide networking and educational platform. Victoria is a Trustee of the Lloyd’s Charities Trust and a Board member of the Lloyd’s Community Programme. She is also on the Court of the Worshipful Company of Insurers.

Michael Watson is Executive Chairman of Canopius AG, a private equity backed global specialty re(insurance) business with its principal operations at Lloyd’s.

He led the original management buyout of Canopius in 2003 and again in 2018.

He has over 40 years’ experience in commercial and investment banking, trade finance, stock broking, life and non-life insurance, gained in London, Bermuda and New York. He is a Chartered Accountant and serves on the Board of the Lloyd’s Market Association and Weston Insurance Holdings Corporation.

We would like to congratulate all new members on their appointment and we look forward to their contribution to the work of Lloyd’s Council.

FEBRUARY 2019

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ANALYSIS - KROLL

SIX BEST WAYS TO PROTECT YOUR ORGANIZATION FROM INSIDER CYBER RISKS

By David Klopp, Associate Managing Director, Cyber Risk

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avid Klopp is an Associate Managing Director in the Cyber Risk practice of Kroll, a division of Duff & Phelps, based in the Singapore office. David oversees all digital forensics and incident response (DFIR) casework in the Asia-Pacific region. He has extensive experience leading end-toend investigations, including data theft, reputational issues, employee misconduct, insider threat and electronic fraud.

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yber risk discussions often center around how criminals, nation states, hacktivists and/or terrorists could breach perimeter defenses to carry out objectives such as data theft, denial of service and financial fraud. But what about the trusted employees, contractors and thirdparty suppliers that already have legitimate access to your systems and data? These are commonly neglected data breach vulnerabilities.

Independent research and years of Kroll’s extensive global fieldwork have shown that trusted insiders can actually pose a greater cyber risk to a business, whether by accidentally or negligently exposing data, or acting with malicious intent. For example, many incidents are traced back to employees carelessly clicking a phishing email link that delivers malicious software or steals credentials, or when they send confidential data to a personal TABLE OF CONTENTS

email account “to work from home.”

Employees can also be tricked into changing payment details in response to a message received from a compromised email account.

We have also encountered cases where proprietary source code was posted to a public repository, likewise when former employees have taken client lists, source code, proposals, etc., to a competitor upon changing jobs.

These examples are just the tip of the iceberg. To reduce insider risk, See Cyber Risk Page 40 www.chart-exchange.com

Be Cyber Resilient From cyber risk assessments and penetration testing to incident response and investigations, Kroll's global cyber experts are ready to help you and your insureds along the path to cyber resilience.

kroll.com/cyber

Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the world’s oldest insurance brand with the entrepreneurial mindset of U.S. agencies.

For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and Europe-based insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 34 strategic locations throughout the United States.

Guided by a proprietary, systematic legal project management program, we help clients define strategies and achieve outcomes that align with agreed business requirements. We also implement dedicated Program Claim/Litigation Management services, creating value and driving efficiencies with respect to legal spend and indemnity.

Wilson Elser is especially proud of its strategic partnership with CHART Exchange and our shared commitment to strengthening relationships between cover holders and risk takers on either side of the Atlantic.

wilsonelser.com Š 2017 Wilson Elser. All rights reserved. 567-17

ANALYSIS - WILSON ELSER

SELF-DRIVING CARS WILL LIKELY INCREASE PRODUCT LIABILITY LITIGATION

By Tiffany Gruenberg, Esq.

S

upporters of autonomous vehicles, or self-driving cars, often claim they will make our roads safer by removing human error from the driving equation. However, critics of this new technology argue that the complexity of these machines will increase the potential for product defects to occur, which may mitigate some of the safety benefits derived from taking the potential for human error out of the act of driving a vehicle.

One way to conceptualize the product liability risks that are

unique to self-driving vehicles as opposed to the traditional humanoperated vehicle is to think about the complexity involved in designing and manufacturing an autonomous vehicle.

In the case of the traditional automobile that is operated the old-fashioned way, by a driver, the manufacturers face the risk that the vehicle could be involved in an accident, and the claim could be made that a defective component of the vehicle failed to prevent the accident or caused the accident in the first place. Naturally, the first issue to be investigated in an accident involving a vehicle driven

by a human is what was the driver doing, or not doing, just before the accident, and did the driver’s actions or inaction cause the accident?

In investigating accidents involving autonomous vehicles that issue does not come into question. Since the vehicle will be operated by a computer, not a human, accident reconstruction experts will focus only on the product itself, and the actions or inaction of the occupants of the vehicle will be irrelevant in determining the cause of the accident.

See Self-Driving Cars Page 42

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bout the author: Tiffany Gruenberg focuses her practice on complex commercial litigation, product liability, professional liability and general civil liability claims. She is certified as a mediator in California under the Dispute Resolution Programs Act. Prior to joining Wilson Elser, Tiffany gained experience at a national civil litigation law firm. While in law school, Tiffany served as teaching assistant for Contracts, Sales, Torts and Criminal Law. During her time at La Verne she earned the Anna Rahm Scholarship and the Scholarship for Justice Endowed for her academic achievements. In her final year, she received the National Order of Scribes Award for outstanding legal writing. Tiffany also volunteered at the Legal Aid Society of Orange County providing legal services to low-income families. Prior to attending law school, she earned her master’s degree in social work and provided mental health services to children, families and veterans.

www.chart-exchange.com

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NEWS - WILSON ELSER

MARITIME PRACTICE GROUP LEADERS FROM FOWLER RODRIGUEZ JOIN WILSON ELSER’S NEW ORLEANS OFFICE

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EW ORLEANS (January 2, 2019) – National law firm Wilson Elser announced today that the preeminent maritime and marine environmental practice group from New Orleansbased law firm Fowler Rodriguez, led by partners Antonio Rodriguez, Jake Rodriguez and Michael Harowski, have joined the firm’s New Orleans office effective January 1, 2019.

For decades, the team has focused its practice in the areas of maritime, environmental and energy law on a local, national and international level.

They also maintain a substantial regulatory and commercial litigation practice.

Daniel J. McMahon, Wilson Elser chairman

Notably, the legal team is significantly experienced in the areas of marine pollution and casualty response and is designated as response counsel for a number of Fortune 500 companies

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in the marine and energy sectors.

Through these designations, they have been involved in numerous, major casualty responses, including their engagement

by BP on the Deepwater Horizon casualty.

Clients of the group include national and international insurers and their insureds, vessel owners and operators, major cruise lines and energy companies.

“Wilson Elser is a natural fit for us,” explains Toney Rodriguez. “The firm is well established in the transportation sector in trucking, aviation and rail, and has active 24/7 emergency response capabilities nationwide.

Our practice dovetails nicely with TABLE OF CONTENTS

Wilson Elser’s existing transportation capabilities, its structure and its target clients.”

Daniel J. McMahon, Wilson Elser chairman, explains that Wilson Elser has had an active maritime practice for most of its 40-year history. “With capabilities and opportunities in our offices in port cities across the country and around the world through Legalign Global, an alliance of several of the world’s leading insurance law firms that Wilson Elser co-founded, expanding this practice to New Orleans with lawyers of this caliber allows us to bolster our Admiralty & Marine practice and better service our existing clients throughout the world.”

Toney Rodriguez is recognized as a thought leader in the maritime sector and has earned a Chambers Band 2 rating and a Best Lawyers in America ranking in the maritime and commercial litigation practice areas. www.chart-exchange.com

He is particularly well regarded for his expertise on the Oil Pollution Act of 1990 and CERCLA and has written and lectured extensively on both.

Wilson Elser opened its New Orleans office in 2016. Since then, the firm has opened seven more offices bringing its total office count in the United States to 37.

Complete bios for Toney Rodriguez, Jake Rodriguez and Michael Harowski are available on the firm website.

They will be joined by senior associate Ashley Bane, paralegal Margaret Riess and legal secretary Kelly Poteet.

View Law360’s Coverage of the Enhanced Maritime Practice.

ABOUT WILSON ELSER Wilson Elser (www.wilsonelser.com) helps individuals and organizations transcend challenges and realize goals by offering an optimal balance of legal excellence and bottom-line value. More than 800 attorneys strong, Wilson Elser serves clients of all sizes, across multiple industries and around the world.

Wilson Elser has 37 strategically located offices in the United States and another in London. It is also a founding member of Legalign Global, a close alliance of four of the world’s leading insurance law firms, created to assist companies doing business internationally. This depth and scale has made it one of the nation’s most influential law firms, ranked in the Am Law 200 and 53rd in The National Law Journal’s NLJ 500. www.chart-exchange.com

KROLL ANNOUNCES COOPERATION AGREEMENT WITH SWEDISH FIRM TEMPEST SECURITY

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ONDON – Kroll, a division of Duff & Phelps, a global leader in risk mitigation, investigations, compliance, cyber resilience, security and incident response solutions, today announced a new cooperation agreement (the “Cooperation Agreement”) with Sweden-based Tempest Security AB (publ) providing cyber risk solutions to Tempest’s clients across Scandinavia and around the world.

understand that cybersecurity challenges are among the most critical and complex issues confronting clients today, especially when threats can emanate from many directions,” says Andrew Spry, CEO at Tempest. “On behalf of our clients and colleagues, we are excited to make available the elite cybersecurity capabilities of Kroll, which adds another vital dimension to the security support we provide to clients globally.”

“Kroll is very pleased to be working with Tempest Security, which shares our firm’s strong commitment to providing organisations with the solutions they need to build more resilient information security defences and achieve greater cyber maturity,” says Andrew Beckett, Managing Director and Kroll Cyber Risk Leader for EMEA. “We look forward to assisting Tempest clients across diverse industries with end-to-end services that leverage findings from Kroll’s global work on thousands of cybersecurity events every year.”

Tempest’s Scandinavian clients will be able to access Kroll’s wide-ranging cybersecurity expertise and marketleading portfolio of cybersecurity solutions through the Tempest Security Operational Centre (SOC), including:

“As the fastest-growing Swedish security firm, we at Tempest Security

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• •

• • •

Cyber Policy Revision and Development Incident Response, Investigations, Computer Forensics and Breach Notification Penetration Testing and Security Audit Cyber Advisory Services Incident Response Plan Review, Development and Testing

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ANALYSIS - VANTAGE AGORA

TOP TECH TRENDS TAKING OFF IN 2019

By Evelyn Wargo

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ith 2018 under wraps, it’s time to reflect on the past and look forward to the bright future ahead. We aren’t just talking about personal growth and goals going into the new year…Vantage Agora is here to present you with something way more enticing than that new diet you were planning on starting for 2019!

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bout the author: Evelyn Wargo is a Technical Writer and Content Specialist at Vantage Agora.

With an eye for detail, she develops and implements creative/technical content, compatible with company standards. Evelyn graduated from John Carroll University with a BSCS (Computer Science) degree with a focus in Healthcare IT.

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Innovation in the tech industry is nothing new. New innovations are constantly rolling out and 2018 gave us a taste of this. 2019 looks to be the year we see all of the hyped technology become a reality.

Tech experts at Vantage Agora are unveiling what they believe to be the top 7 Tech Trends that will take off in 2019!

TOP TECH TRENDS TAKING OFF IN 2019: 1. Blockchain Technology: Blockchain was all the rave at the end of 2018 but looking ahead, we can expect a separation between hype and reality. Real-world applications and broader scale adoption of the technology will emerge as more businesses begin to enter the realm of blockchain.

According to Gartner, “These TABLE OF CONTENTS

[Blockchain-Inspired Archetype] offerings allow enterprises to proceed with blockchain while avoiding the expensive change in business model and process.

However, they can inhibit enterprises from taking advantage of true blockchain disruption, and may increase vendor lock-in. Enterprises choosing this option should understand their limitations and be prepared to move to blockchain complete solutions over time. ” 2. Digital Twins of an Organization: Again, not a new concept but rather one that is foreseen to take flight in 2019. Digital twins of an Organization (DTO) are merely digital replicas of physical objects. They work by drawing realtime data from various sources to help companies understand their world and become proactive versus reactive. With the recent explosion of the IoT, DTOs are prepared to improve decision making and provide valuable insight into product performance this year.

3. Autonomous Things: Self-driving cars, robots possessing human-like capabilities/features and drones are all slowly becoming a reality and will soon be the norm. The recent See Top Tech Trends In 2019 Pg 24 www.chart-exchange.com

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ANALYSIS - VANTAGE AGORA Continued From Page 22

TOP TECH TRENDS TAKING OFF IN 2019 boom in AI technology has helped bring these autonomous things to life and we can look to incorporate these “things” into our society in an organic way come 2019.

4. Virtual Reality: Especially for gaming, educational, and engineering purposes, virtual reality has become a hot topic and the trend looks to carry on into 2019.

We can expect an increase in the number of VR applications, lower costing devices and an increased quality and resolution of VR headsets.

5. AI Takeover: Alexa and Google Home introduced AI technology into the homes of many and will continue to be a growing market in 2019 -especially in areas outside of the tech and software companies. Gartner even predicts that, “AI-enabled decision support/ augmentation will be the largest contributor to business value creation, overshadowing AI process automation throughout the entire forecast period. The number of jobs affected by AI will vary by

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industry, with healthcare, public sector and education benefiting from growing job demand, while the manufacturing sector will experience the biggest impact from AI-enabled processes .”

6. 5G is coming! Improve your download speed, experience higher quality video streaming and instant cloud access due to extremely low latency connectivity -time between data request and delivery. A number of companies are already hinting at debuting smartphones and devices with 5G capabilities that are expected to drop in 2019!

NEVER MISS AN ISSUE OF CHART EXCHANGE

7. Edge Computing. The cloud computing era has slowly begun to simmer down as we already have access to a number of centralized services and devices. Moving forward, edge computing has become and will remain a trending topic in 2019. By allowing data to be computed at or near the source instead of relying solely on the cloud, latency is significantly reduced and real-time data can be provided at lightning fast speeds.

Make one of your 2019 New Year’s resolutions to get digital and stay on top of these techy trends! It’s not so much out with the old and in with the new, but rather improve upon existing technology and bring to life all of the tech hypes from 2018.

Gartner: Understanding the Gartner Blockchain Spectrum and the Evolution Technology Solutions, David Furlonger, Rajesh Kandaswamy, 26 October 2018.

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NEWS - LLOYD’S OF LONDON

BURKHARD KEESE APPOINTED LLOYD’S CHIEF FINANCIAL OFFICER

B

urkhard will take up his position at Lloyd’s on 1 April 2019, following 14 years at Allianz Group. Since 2012 he has been the Chief Financial Officer of Allianz Deutschland AG, Germany´s largest insurer with over €34bn in premiums.

Prior to this Burkhard was Executive Vice President and Chief Operating Officer of the global finance function of Allianz.

During his time as CFO of Allianz Deutschland AG, Burkhard successfully implemented the internal models for Solvency II, introduced a value generating growth strategy and initiated several large transformation programmes. As the CFO of Allianz Germany, Burkhard has also been responsible for the firm’s €300bn investment portfolio.

John Neal, Chief Executive Officer of Lloyd’s, said: “I am delighted to welcome Burkhard to Lloyd’s. He is an accomplished Chief Financial Officer with leadership experience across financial, capital and investment management as well as proven expertise in business transformation.

Burkhard joins Lloyd’s at an exciting time.

We are working with all our stakeholders

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to significantly improve near term profitability and to ensure Lloyd’s can remain at the forefront of commercial, corporate and specialty insurance and reinsurance for years to come.”

Commenting on his appointment, Burkhard added: “It has been a tough decision to leave Allianz Deutschland, but I’m excited to join Lloyd’s in 2019 as its Chief Financial Officer. For me, it is an incredible opportunity to play a part in Lloyd’s success.

WOULD YOU LIKE TO HAVE YOUR MESSAGE DELIVERED TO 100,000+ FOCUSED INSURANCE INDUSTRY EMAIL ADDRESSES EVERY MONTH?

For 330 years Lloyd’s has been taking on the world’s risks and that longevity demonstrates its enduring relevance. As one of the oldest and most respected insurance brands in the world, there is nothing else like it, and I’m thrilled to be given this opportunity.”

Burkhard’s responsibilities as Lloyd’s CFO will include financial reporting for the Corporation and the market, capital setting and capital adequacy, tax, treasury and investment management.

The Prudential Regulation Authority and the Financial Conduct Authority are minded to approve the appointment, subject to the completion of outstanding checks.

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I’m Kate Boyle Managing Editor. I handle CHART Exchange Advertising. Call me at 302 765-6056 and let’s have a conversation.

FEBRUARY 2019

25

ANALYSIS - FORTEGRA

HOW TO AVOID COMMON WINTER DEVICE ACCIDENTS

By Jon Mikow - V-P, Wireless, Fortegra

WINTER WEATHER CAN SERVE UP SOME CHILLING RISKS FOR DELICATE DEVICES. HOW CAN YOU AVOID THE MOST COMMON ACCIDENTS?

E

very year, more than 45 percent of smartphones fall victim to accidental damage.

However, during the winter months, treacherous conditions bring about a whole new set of potential threats, making cracked screens and liquid damage all the more likely to occur.

Here are some of the most common cold weather mishaps that, with a few simple changes, you can easily avoid.

SWIPE, SLIP, SHATTER Nearly 90 percent of people drop their phones once a month, with five percent of those claiming to drop their phones at least six times a month. As winter weather rolls in, these accidents can become even more prevalent. A quick slip on the ice can send you and your device crashing to the ground—and landing with your full weight on

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FEBRUARY 2019

a delicate screen usually doesn’t make for a great outcome. And don’t forget what could happen when you slide off your glove to send a text – freezing temperatures have the ability to create cold hands that aren’t able to grip your device like usual. On average, it’ll cost you up to $250 to repair or replace a shattered screen.

WINTER WHITE IS STILL WET Despite the obvious lack of buoyancy, 28 percent of consumers take their devices for a swim every year. Whether it’s a dip in the pool or a drop in a beer, these wet whoopsies add up to be the TABLE OF CONTENTS

number one cause of device damage annually. Now, factor in winter weather and the potential perils start piling up. Carry your phone in your back pocket? Your device has a greater chance to slip out and land in snow, ice, or slush. And even though the snow is frozen, it can still seep into your device and melt, causing irreversible damage. So, while snapping pictures of the kids sledding seems like a great idea, one slip and excess moisture can quickly ruin the fun.

See Winter Device Accidents Page 33 www.chart-exchange.com

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ANALYSIS - KROLL

NEW YEAR, NEW ROLE?

By Elizabeth Ross

biographies and press releases, this could include references to or some, January can mean speaking engagements you’ve dusting off the CV to explore attended or industry papers new board memberships, published, photographs at personal consulting, advisory or and professional events. It is in your investment interest for the opportunities. If information you’re a senior retrieval process Kroll’s Business executive, it’s to start with an Intelligence important to accurate version research and digital bear in mind the of your CV. Offer investigation tools can ways in which the it, even if it’s not help you identify if a vetting process requested initially. may be changing particular aspect of your and evolving. personal or professional Online More exhaustive profile could be a source professional and varied biographies of concern or interest, due diligence, Who doesn’t or benefit from applied particularly if the have a Linkedin context prior to launching new position will profile these a new venture or being include a personal days? How often considered for a new investment, is now do you update commonplace. it and check for appointment.”

Understanding inaccuracies? how those How does the conducting the vetting may see profile compare to other professional things is time well spent. biographies that may still exist, even in cached form, for your current or There are lots of positive ways to former employers? If you are senior prepare for the process, all of which enough for press releases to have are excellent profile management been issued in connection with your opportunities. Below is a snapshot of appointments don’t assume that the issues we recommend considering. person drafting them is perfectly informed – check them carefully.

CREATING THE RIGHT IMPRESSION Potential employers or co-investors

F A

bout the author: Elizabeth Ross is an associate managing director in Kroll’s Business Intelligence and Investigations practice, based in the London office.

As a senior practitioner on the Business Intelligence team, Elizabeth provides consulting advice to private equity, professional services, and corporate clients in EMEA; their commercial interests stretch across a range of sectors and geographies.

Prior to joining Kroll, Elizabeth served as an Equity Research Analyst at Morgan Stanley, with a focus on Central and Eastern European banks.

Current CV - There are multiple places where your career footprint can be identified. In addition to online www.chart-exchange.com

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See New Year, New Role? Page 30 FEBRUARY 2019

29

ANALYSIS - KROLL Continued From Page 29

NEW YEAR, NEW ROLE will be examining any variations between the professional biographies they identify or differing accounts in media reports. Don’t give them the opportunity to question whether you are the source of the confusion or any misrepresentation.

Social media – In the future, will our career histories be an amalgamation of carefully curated online references to our activities as opposed to a formal CV? As the expectation to be an ‘influencer’ in one’s field intensifies, this certainly seems a trend to watch.

Boards are increasingly scrutinizing potential candidates’ online social media profiles for evidence of activity that might generate the wrong kind of public interest. This may include political statements, evidence of insensitivity surrounding gender or other inclusivity issues, and other lifestyle factors which may jar with the company’s image or create perceived risk. Be sure you review the content of any networking sites you may have used in a personal and professional context and are happy with the image they convey.

Don’t have any social media accounts?

You might want to check whether that

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FEBRUARY 2019

speaking engagement you made last spring has been picked up on YouTube or elsewhere online. Just because you are not managing a digital footprint actively doesn’t mean you don’t have one.

Verifications – Many companies, in particular if they are owned by a US parent, will now insist on formal verifications of employment and education. In most European countries, this will require your consent. However, Kroll has found that following the implementation of GDPR, employers and institutions may not readily comply with such third party requests, even with an individual’s consent, or the process may be time consuming, with further disclosures required. Your ability to provide degree certificates and proof of employment, if asked, will be appreciated.

Don’t underestimate the importance that a potential counterparty may place on this, even if your career is over two decades long. Kroll’s research in the US shows that when asked why they have not proceeded with particular deals, investors rank inaccuracies and misrepresentation in the professional histories of the management team as among their top concerns.

Companies House filings –Are there any appointments which, when weighed up against the rest of your professional history, could look like a potential conflict of interest? Do you have a noteworthy investment history (perhaps in connection with a family business) which is otherwise unrelated to the rest of your career? If you haven’t TABLE OF CONTENTS

previously incorporated an account of these activities in your CV, this may be an opportunity to do so. Ensure that filings are up to date for any personal investment vehicles and if you have other appointments by virtue of previous professional roles, double check that the dates of appointment and resignation are correct. This is another area where individuals take accuracy for granted.

CONSIDER A SELF-DUE DILIGENCE EXERCISE If you’re an executive with a complex professional profile a self-due diligence exercise may be necessary. We find that the trigger for our work in this area can be an unexpected knockback from a potential business partner, employer, or financial institution approached to fund a possible new venture. The increased prevalence of computer driven background screening platforms can also result in ‘false positives’ linking executives to a red flag issue which is in fact unconnected to them. Pre-emptive analysis can also be valuable if you are moving from a career in or focused on frontier markets where the business and political environment is contentious and reliable information scarce, to relationships with business partners in developed regions.

Kroll’s Business Intelligence research and digital investigation tools can help you identify if a particular aspect of your personal or professional profile could be a source of concern or interest, or benefit from applied context prior to launching a new venture or being considered for a new appointment.

www.chart-exchange.com

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ANALYSIS - FORTEGRA Continued From Page 26

HOW TO AVOID COMMON WINTER DEVICE ACCIDENTS NO MARKET FOR DEVICE-ICLES When temperatures drop, we just grab an extra hat and gloves to stay warm. Unfortunately, your wireless device doesn’t have that option.

Temperatures below negative four degrees can cause devices to experience battery death, internal

component errors, rigidity, and liquid condensation—all of which are considered irreversible damage. To prevent this grim possibility, never leave your phone in the car during the winter and, if you find yourself outdoors, limit exposure by only using it when absolutely necessary.

NEVER MISS AN ISSUE OF CHART

The winter season can be fun, but it’s a particularly dangerous time for wireless devices. Cold temps and slippery conditions can lead to unfortunate damage—damage that’s avoidable. But if you want to be extra sure that your device is protected during the winter months and beyond, a Fortegra wireless protection plan can do the trick.

For more insight on who might be at risk for wireless device damage no matter the season, check out our blog on the three demographics that need device protection the most.

Fortegra® is the marketing name for the warranty operations of Fortegra Financial Corporation and its subsidiaries.

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bout the author: Jon Mikow is a sales, management and training professional as well as a sales, management and training professional for all things wireless with an emphasis on handset protection programs.

He is dedicated to initiating and developing relationships with his partners and ensuring they have the best training, support and recommendations to safeguard their margins and maximize their profit potential with their mobile customers. Specialties: Mobile Device Protection, Sales Management, Employee Compensation, Consultative Sales and Solutions, Sales and Process Training, Store and Corporate Operations. onal for all things wireless with an emphasis on handset protection programs. Mikow is dedicated to initiating and developing relationships with my partners and ensuring they have the best training, support and recommendations to safeguard their margins and maximize their profit potential with their mobile customers.

4215 E. McDowell Road, Suite 115 | Mesa, Arizona 85215 Phone 602.904.7687 | Fax 602.734.5759 | eriskstrategies.com

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Provides risk management consultation

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Assists in determining if a captive is the right solution for you (traditional or small)

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ERS provides insurance coverage policy design

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ERS provides captive formation and captive management services.

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The staff of Enterprise Risk Strategies (ERS) has over 100 years of insurance and risk management experience. Our staff includes accountants, CPAs (certified public accountants), CAs (chartered accountants), attorneys, business and insurance professionals.

Keeping you on the right path.

Solving today’s problems with an eye towards tomorrow’s challenges.

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ANALYSIS - FORTEGRA

4 REASONS TEENS ARE WAITING TO GET THEIR DRIVER’S LICENSE Scott McLaren - CMO

T

If you’re like most, you remember the anticipation of finally acquiring your driver’s license. The liberation and the feeling of freedom driving brought was like no other. In recent years, this anticipation seems to have fallen off as the number of teens actively pursuing their driver’s license has reached an all-time low of just over 70 percent. Considering 85 percent of high school seniors had their driver’s license in 1996, that’s quite a decline. But what is it exactly that’s reducing teens’ interest in getting on the road—and what are they doing instead?

EVERY THING IS ON DEMAND Today, instant gratification is a way of life. The introduction of the internet and mobile technology has created a generation of individuals who expect quick answers and services. This is especially true with the creation of IoT. In fact, by 2021 the average American is expected to own 13 internetwww.chart-exchange.com

Attribution 2.0 Generic (CC BY 2.0) State Farm

oday’s teens are accustomed to their desires being met on demand. Who needs a driver’s license when life is available at your fingertips?

connected devices. When you’re accustomed to the convenience of technology, and entertainment, food, and other needs have become accessible at the touch of a button, pursuing a driver’s license might seem tedious and unnecessary.

WHY DRIVE WHEN YOU CAN JUST RIDE? Despite rideshare company policies forbidding unaccompanied customers under 18, at present, 84 percent of transactions labeled as ‘taxi services’ by teen-targeted debit card Current go to apps like Uber and Lyft. Why would a teen take the time to get

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See Teens Are Waiting On Driver’s License Page 41 FEBRUARY 2019

35

ANALYSIS - LAURDAN ASSOCIATES

SPECIAL REPORT: THE EVOLUTION OF HR AUDITS

By Ronald Adler, President/CEO Laurdan Associates

THE EVOLUTION OF HR AUDITS

E

volution is a process of change. In recent years we have seen a significant change in the HR auditing process, in the value derived from HR auditing, and in the HR audit tools used. HR audits have evolved from a simple checklist of dos and don’ts or periodic affirmative action plans to a comprehensive, sustainable process that: 1) is an integral part of the organization’s internal controls, due diligence, and risk management; 2)

is a fundamental activity of strategic and operational management; and 3) uses sophisticated auditing products and consulting services. Increasingly HR audits are conducted of HR rather than by HR. This white paper reviews the changes in HR audits, discusses the external and internal forces affecting the process and use of HR audits, and provides information about the leading HR auditing process.

OVERVIEW OF HR AUDITS The HR auditing process is — or should be — an independent, objective, and systematic evaluation that provides assurance that:

1) compliance and governance requirements are being met; 2) business and talent management objectives are being achieved; 3) human resource management risks are fully identified, assessed, and managed; and 4) the organization’s human capital adds value. Under this definition, HR audits are more than an audit activity that solely collects and presents evidence of compliance. HR audits are increasingly expected to look behind and beyond the organization’s assertions of sound and proper HR management practices and to assess the assumptions being made, to benchmark the organization’s processes and practices, and to

A

bout the author: Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting. Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and nonprofits, insurance companies and brokers, and employer organizations. Mr. Adler is the developer the Employment-Labor Law Audit™ (ELLA®), the nation’s leading HR auditing and employment practices liability risk assessment tool — now in the tenth edition. g firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and nonprofits, insurance companies and brokers, and employer organizations.

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FEBRUARY 2019

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www.chart-exchange.com

provide the necessary consultative services that help the organization achieve its business goals and objectives.

EXTERNAL AND INTERNAL FORCES Numerous external forces and factors have had an impact on the demand for and scope of HR audits. First, in the global economy, human capital is becoming the single most important determinant of competitiveness, productivity, sustainability, and profitability. Increasingly, the organization’s human capital is being recognized as the source of innovation and a driver of business success. Thus, to be effective in the global economy, HR audits must be diagnostic, predictive, and action oriented.

Second, a confluence of economic, political, and social factors, including corporate scandals, the failure of the financial industry to adequately assess risks, and increasing stockholder initiatives, have resulted in increased statutory and regulatory requirements, a call for greater transparency, and increased internal and external audit activity. Consider: 1. Sarbanes-Oxley requires effective internal controls. While Sarbanes-Oxley specifically requires effective internal financial controls, the financial and organizational costs of employment related claims and litigation can have a material effect on an organization’s bottom line, can have a negative impact on earnings per share

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and the organization’s valuation, and because employment litigation can negatively affect the organization’s employment brand, can impact the organization’s long-term sustainability.

2. Securities and Exchange Commission Guidelines require management to “…exercise reasonable management oversight.” If human capital is one of the organization’s most important assets ─ it is certainly one of the organization’s largest expenses ─ is it not reasonable to expect that management applies the same level of oversight and due diligence to the management of the organization’s human capital as it does to the management of the organization’s other assets.

3. The U.S. Federal Sentencing Guidelines require that management demonstrate that it took reasonable steps to engender an organizational culture of compliance and to “monitor and audit” compliance activities, behaviors, and results. Ethical conduct and legal compliance, including nondiscriminatory employment practices, are achieved by management setting “the tone at the top.” Audits ─ including HR audits ─ provide the C-suite and boards of directors with important feedback about how effectively they are communicating this message.

4. Governmental agencies are attacking systemic

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noncompliance. The EEOC strongly encourages employers to conduct comprehensive HR audits as a tool to ensure that systemic discrimination does not exist. The OFCCP considers self-assessments a “best practice” and has issued its final voluntary guidelines for self-evaluation of compensation practices. The U.S. DOL considers wage and hour self-audits as a valuable tool in ensuring compliance, and the Department of Homeland Security (DHS) and immigration attorneys encourage employers to self-audit their I-9s and hiring processes and practices to ensure compliance with U.S. immigration laws.

5. Venture capitalists, investors, and stockholders are scrutinizing organizations’ human resource management practices, processes, and outcomes and using HR audits to help them properly valuate an organization’s human capital asset, expose liabilities, and perform due diligence.

6. Recognizing the importance of the organization’s human capital asset and the risks associated with misaligned, mismanaged, and unlawful employment practices, internal auditors and risk managers are assuming a leadership role in developing HR auditing standards and in designing and conducting HR audits.

See Evolution of HR Audits Page 44 FEBRUARY 2019

37

FORESTRY WORLDWIDE FORESTRY (RE)INSURANCE FACILITY Pardus was established in 2013 by Keith Thompson, formally CEO of Advent capital Holdings Ltd and Darren Stockman Active Underwriter of Syndicate 780 and Director of Advent Underwriting Ltd. Pardus are an independent Managing General Underwriter, a Lloyd’s approved Coverholder, and an appointed representative of Capita Commercial Insurances Limited.

Cover

Maximum line of USD 8.5M any one risk, any one location. Capacity provided by Lloyd’s of London and “A-” rated company paper. Perils covered mainly Fire and Windstorm, but we can offer additional coverage for hail, ice, snow, frost.

We cannot cover Pest and Disease, although we can offer cover under a small sublimit for Pest and Disease treatment costs.

Sublimits available for fire-fighting costs, aerial photography, debris removal, claims preparation costs etc.

Frost

Hail

Snow & Ice Storm

Flood

PERILS COVERED Rainfall Deficiency

Fire

Malicious Damage

Windstorm

Business Interruption is offered when fruiting trees are destroyed by covered physical damage perils, leading to a loss of yield while the new trees develop •

We have specialist Pardus facilities in place to cover Public Liability (in Europe) and associated forestry Plant and Machinery risks

OUR TAILORED PRODUCTS

Full Value and Value at Risk

Full Value works in the traditional way with insurer retaining any salvageable value from the insured property.

Value at Risk leaves an agreed salvage (based on salvage scales developed by Pardus using age and species data) in the ownership of the client.

Pardus then only insure the non-salvage element meaning the final rate will be applied to a fraction of the TSI generating a lower overall cost to the client.

Target business: •

We are keen to see any enquiry for standing timber commercial planation forestry

• •

Information requirements for quote: •

Perils to be insured against

•

Schedule of forest locations by values, age, species

Forestry risks with accreditation from the Forestry Stewardship

Locational information needs to be provided in either

Council (or similar)

shape file format (.kmz) or the latitude/longitude

Forest Owners comprise:

coordinates of the centre point of each location

-

Individual investors

•

5-10-year ground-up loss experience by peril

-

Commercial Plantation Companies

•

Desired policy structure:

-

Individual Forest Owners

-

Timberland and Investment Management Organisations

-

(TIMO’s)

•

Additional features: -

-

Forest Management Organisations (FMO’s)

-

Real Estate Investment Trusts (REIT’s)

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Banks loans made to forest owners or fruit tree owners

-

Forest Owner Associations

Deductibles, limit etc Firefighting costs, claims preparation, aerial photography, plantation infrastructure

To download our full forestry questionnaire, please visit our website https://pardusunderwriting.com/products/forestry/

Exclusions

Property

Buildings

Terrorism

Pest and Disease

Drought

Crop

Fruits, Nuts etc

Phil Cottle - Senior Agricultural Underwriter Direct +44 (0)203 735 1608 Mobile +44 (0)7769 895048 phil.cottle@pardusunderwriting.com Dan Longden Cert CII - Underwriting Assistant

Direct +44 (0)203 735 1610 Mobile +44 (0)7756 961500 daniel.longden@pardusunderwriting.com

Pardus Underwriting Ltd. 1st Floor, 3 Lloyd’s Avenue, London, EC3N 3DS www.pardusunderwriting.com

“We have access to a worldwide forestry binding authority covering the physical damage to commercial forestry. There is a maximum line of USD 8,500,000 any one risk, any one location and the covered perils can be found on this flyer. This is written 100% Lloyd’s/company market and Prospect are the Insurance broker”

ANALYSIS - KROLL Continued From Page 16

SIX BEST WAYS TO PROTECT YOUR ORGANIZATION FROM INSIDER CYBER RISKS it is imperative that your internal policies, procedures and controls are as strong as your perimeter defenses. Following are some best practices that organizations of all sizes, in all industry sectors, should establish or strengthen: Make employee education an ongoing priority. Teach your employees to have a security-first mindset when it comes to external email communications and handling business-related data. Reinforce this training on a regular basis.

Practice least privilege. Only assign users the access they need to carry out their specific duties. Elevated/ privileged accounts should be kept in a software vault solution that requires a change ticket for checkout rather than having users with permanent escalated access 24/7/365.

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Implement data classification watermarking (Internal Use Only, Confidential, Sensitive, etc.) and encryption standards for the different data classifications created in your environment.

Utilize a data loss prevention (DLP) solution to enforce handling of this watermarked data as well as any personally identifiable information (PII), protected health information (PHI), account numbers, credentials, critical server IP addresses/names, source code, etc.

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Enable audit logging wherever possible, especially on any confidential systems or network shares. Regularly review these logs for any abnormalities.

Block access to external email/ website domains and universal serial bus (USB) external drives not required for business-related duties.

Use separation of duties, makerchecker or other similar principles to control changes to payment details, critical systems and access management.

If you believe a breach has occurred, immediately contact an experienced breach incident response provider. Time is of the essence in these cases to preserve data in a forensically sound manner and to begin the analysis necessary to understand the full breach scope before critical evidence may be lost.

TABLE OF CONTENTS

Mark Lann Phone:

305-248-9495 Email: chart.eo@rockwoodinsurance.com

www.chart-exchange.com

ANALYSIS - FORTEGRA Continued From Page 35

4 REASONS TEENS ARE WAITING TO GET THEIR DRIVER’S LICENSE

more on-demand, but it has also become more connected. Teens today are constantly connected through the use of smartphones, social media, and other applications, spending an average of nine hours a day online. And get this: more than 94 percent of teens say the time they spend with friends via social media replaces the need to see them face-to-face as often. With peer connection in your pocket, many teens also see no point in getting behind the wheel to spend time with others in person.

TEENAGERS ARE FORCED TO BE FRUGAL

a license when they can hail a ride using the phone, regardless of restrictions? It takes an average of 67 hours to get a driver’s license.

Many teens view the process and time commitment as pointless when, with a few clicks, they can get anywhere they need to go.

CONNECTIVITY IS EASIER THAN EVER Not only has society become

One notable distinction about today’s teenagers—most members of Gen Z born between 1995 and 2012—is that their formative years came either during or immediately following the Great Recession. While many of their Millennial counterparts grew up in somewhat healthier economic times, Gen Z’ers watched their families struggle through the economic downturn.

Not only are these teens more frugal as a result, but our current

socioeconomic environment hasn’t really let their families off the mat.

For example, with manufacturers like GM and Ford building more expensive cars and trucks and scrapping basic models, vehicle ownership is becoming increasingly more expensive costing nearly $8,500 annually. The reality is that, after purchasing a car for their first teenager, many families may no longer be able to afford more vehicles as the rest of their children age—and most teens can’t afford to make a purchase themselves.

In short, connectivity and cost are the key factors contributing to teens’ reluctance to pursue a driver’s license. With a whole generation of potential drivers uninterested in getting behind the wheel, how will the auto industry respond?

To learn more about current automotive trends, check out our blog on how ridesharing services are impacting auto sales.

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bout the author: Scott McLaren is Executive Vice President and Chief Marketing Officer at Fortegra where he leads the company’s marketing and customer relationship management initiatives. A graduate of the University of Michigan with an MBA from the University of Phoenix, Scott is largely responsible for advancing the revitalization of the Fortegra brand, helping clients and consumers Experience More.

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ANALYSIS - WILSON ELSER Continued From Page 19

SELFDRIVING CARS WILL LIKELY INCREASE PRODUCT LIABILITY LITIGATION This will entail accident reconstruction experts examining various technology malfunctions, such as the software and hardware that are used to control the selfdriving car. This will require the accident reconstruction experts to have expertise beyond the fields of mechanical engineering and bio-mechanics, and will require additional expertise in the fields of computer science, data analytics and programing.

Notably, with the rise in the popularity and widespread use of ride-sharing apps, as opposed to the traditional taxi cab, it is expected the self-driving technology will be combined with these apps to increase the efficiency and profitability of this service. The

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operators of these ride-sharing apps In contrast, a study by the Insurance predict that within the next five Institute for Highway Safety (IIHS) years “robots” will drive the majority assessed that the advancement of of their cars. With that being said, both technology and modernized we will likely see an design techniques have led to increase in product a reduction in A self-driving liability claims as this automobilecar has technology becomes related deaths. The more commonplace. the potential to reduction in deaths Technology, although malfunction, as assessed by the beneficial to our lives, IIHS was primarily is the case with focused on the poses significant risks any product. No number of deaths and potential for error based on programming technology has when individuals error or malfunctioning driving or a 100% fail-safe were components. It will be riding in newer capability, and interesting to see how vehicle models as litigation unfolds in this with the newness opposed to older era of ride sharing and model vehicles. of self-driving self-driving cars. cars, it is possible Moreover, recent that all of the It is projected that by studies have 2021, all of the major car indicated that when technology’s manufacturers will sell kinks and flaws assessing recent some version of a selfcar models versus have not yet driving car. With the later manufactured been mitigated or models, the rates increased production of these self-driving of death while predicted.” cars nationwide, it will operating a motor be crucial to examine vehicle have and assess safety protocols and significantly declined over the span implications of these new products of three years. It is important to with more depth. For instance, in a consider the benefits to the public study conducted by the World Health overall in conjunction with the Organization (WHO), an evaluation implications of self-driving vehicles, and assessment revealed that as these factors go hand-in-hand. approximately 1.25 million deaths were the result of traffic accidents.

For instance, individuals who were having difficulty with mobility will Significantly, traffic accidents have now be able to move around more been on the rise; in 2016 the United efficiently. Individuals who will be States documented approximately greatly impacted are those unable 37,461 deaths from auto accidents, to drive due to physical or mental which was an increase from the impairments, as well as the elderly 35,485 deaths documented in 2015. who are no longer able to drive. The TABLE OF CONTENTS

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Driving_Google_Self-Driving_Car.jpg: Steve Jurvetson derivative work: Mariordo, Google’s Lexus RX 450h Self-Driving Car, CC BY 2.0

ANALYSIS - WILSON ELSER self-driving cars not only can assist with efficiency and convenience of transportation but also have implemented electronic stability controls that add other layers of protection on wet or slippery roads.

The first self-driving car lawsuit filed in California, Nilsson v. General Motors LLC, arose from an accident where a motorcycle collided with a selfdriving car on December 7, 2017, in San Francisco, California. The cause of action asserted in this self-driving car collision was negligence, based on the self-driving car allegedly veering into Mr. Nilsson’s lane and causing injuries to his neck and shoulder requiring an extended period of treatment.

Managing the expectations of customers interested in purchasing a self-driving car is key and vital to the success of the self-driving car industry, as well as the mitigation and reduction of potential lawsuits. For instance, the customer must be aware that a self-driving car still poses a risk to safety and human life. Driving in a self-driving car poses dangers on the road similar to driving a car in the traditional sense.

A self-driving car has the potential to malfunction, as is the case with any product. No technology has a 100% fail-safe capability, and with the newness of self-driving cars, it is possible that all of the technology’s kinks and flaws have not yet been mitigated or predicted. With that being said, the self-driving cars while convenient do still have limitations, and it is important that customers do not put 100% of their trust into them. www.chart-exchange.com

When managing expectations, companies that market and sell selfdriving cars have the responsibility to be clear with the customers and third parties with which they enter into contracts. It is important when entering into contracts pertaining to the use and sale of self-driving cars that the contract terms are clear and explicit as to what the company is going to deliver based on that particular self-driving car being sold or marketed.

Additionally, it is important for the company manufacturing and selling the self-driving car to disclose to its customers or buyers the risks inherent in the use of a self-driving car. It is crucial to decide on the best method of communicating these risks and expectations to customers in order to ensure they receive adequate TABLE OF CONTENTS

information and are able to make an informed decision prior to their purchase or use of a self-driving car.

If you are able to manage expectations surrounding the use and purchase of a self-driving car, you could greatly reduce the need for future litigation and expense surrounding these vehicles Moreover, if companies are unable to adequately manage expectations and disclose the potential risks and limitations of these self-driving cars, there is a potential for a flood of litigation in our courthouses.

The legal issues with self-driving cars could present some future challenges, as these types of lawsuits do require some level of expertise and knowledge in the areas of programming, statistics, algorithms and analytics.

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SPECIAL REPORT: THE EVOLUTION OF HR AUDITS

D. Ensuring due diligence, including: uncovering hidden liabilities and assets, identifying vulnerabilities to be corrected, and identifying opportunities to be attacked.

E. Developing HR auditing procedures that become an ongoing and sustainable element of the organization’s internal controls.

F. Assessing and managing employment related fraud.

G. Developing HR auditing procedures that become an ongoing and sustainable element of the organization’s risk management program.

DESIGNING AND CONDUCTING HR AUDITS While an organization’s size, industry, financial health, commitment to becoming a “best place to work,” and business objectives and imperatives affect the scope and urgency of the HR audit process, we have noted some common features, attributes, and objectives in HR audits recently conducted.

1. HR audits are becoming increasingly complex and multi-dimensional. While ensuring compliance is still a basic goal of HR audits, other objectives include: A. Ensuring the alignment of HR management and employment practices with the organization’s business objectives.

B. Assessing the outcomes of the organization’s employment processes, policies, practices, and procedures.

C. Developing the right human capital measurements and HR metrics to allow the organization to calculate and measure the value added by human resources, to determine the ROI and the return on the human capital asset, to measure the outcomes of employment policies and practices and the achievement of EEO and diversity goals, and to benchmark best practices.

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2. HR audit reports are increasingly being used to report audit findings to wider audience. The distribution of the report on HR auditing findings is no longer limited to senior management. As noted above, an increasing number of third parties are expressing interest in the organization’s human resources management. This list of external stakeholders includes not only investors, major stockholders, and venture capitalists, but also governmental agencies, NGO’s, civil rights groups, and plaintiff attorneys.

Since HR audits findings include proprietary and confidential information and, in many cases, produce discoverable information, the implications of nonmanagement stakeholders reviewing HR audit finding are significant and create a potentially serious problem for organizations. As a result, organizations are spending more time considering the format, content, and the impressions created by their HR audit reports.

THE FIVE CRITICAL COMPONENTS OF THE HR AUDIT PROCESS Recognized as setting the standard in HR auditing, the new edition of the ELLA®, the Employment-Labor Law Audit™, the leading HR auditing tool, incorporates the five critical components of an HR audit into the HR audit process. These five critical components, which should be addressed in every HR audit, are shown and discussed

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below in the HR Audit Model™.

1. Activities: The starting point of the HR auditing process is a review of the organization’s activities, that is, the tasks and actions that create or implement employment policies, practices, procedures, and programs. Activities include such actions as the promulgation of an EEO policy statement, a sexual harassment policy, and other employment policies, and the posting of required employment posters.

The Activities component of HR audits is typically evaluated by using a “checklist approach,” that is, the www.chart-exchange.com

item is checked off when it is completed.

2. Behaviors: Behaviors in this context are actions and conduct that affect either positively or negatively the implementation or effectiveness of the organization’s policies, practices, procedures, and programs and demonstrate the organization’s commitment to stated goals and objectives.

Examples of Behaviors include: the creation of a corporate culture that values and promotes

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SPECIAL REPORT: THE EVOLUTION OF HR AUDITS equal employment opportunities, diversity, and compliance; the visible and unequivocal support by senior management for the organization’s diversity efforts; and the budgeting of sufficient resources to achieve EEO compliance and diversity goals. Behaviors are frequently assessed using qualitative measures, such as culture scan and employee satisfaction surveys.

3. Risk Assessment: Risk assessment is the identification of current and/or future events that have the potential to cause loss, peril, or vulnerabilities, and management’s willingness to accept those risks. Risk assessment is also the identification of events or conditions that create new opportunities for the organization to achieve its business objectives. Risk assessment provides management with the information to make informed decision about the allocation of the organization’s human, physical, and financial capital and about effective ways to eliminate, mitigate, control, or transfer those risks. Human resource management and employment practices liability related risks include: employment law and regulation compliance failures; lost business opportunities due to the failure to attract, hire, and retain top talent; intangible asset losses due to turnover and the loss of top talent and key employees; ineffective staff development and succession planning; and lower profitability due to the inability to control labor costs. HR auditing activities include assessments of the external and internal factors that impact human resource

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management and employment practices, including: 1) the economy; 2) legal, regulatory, and litigation trends; and 3) demographic and structural changes in the workplace and work force.

4. Internal Controls: Internal controls are processes, tests, and assessments that help ensure compliance, manage risks, identify fraud, and help ensure the achievement of organizational goals.

HR auditing activities include: 1) assessments of the effectiveness and efficiency of HR management processes, policies, practices, and procedures; 2) the reliability and accuracy of HR management reporting; and 3) the level of compliance with laws and regulations, industry and professional standards, codes of conduct and ethics, organizational policies, and budgets.

5. Outcomes: Outcomes are quantitative and qualitative measurements and metrics that measure and help assess the achievement of organizational goals and objectives. HR auditing activity includes the identification of metrics used by the organization to measure organizational and individual performance; the assessment of results by comparing actual results against projected results, b udgets, and internal and external standards; and a description of the activities, behaviors, and internal controls that are needed to maintain or improve future results.

The value of the HR Audit Model™ is that it helps organizations: 1) assess current HR management and employment practices; 2) identify and diagnosis systemic problems; 3) evaluate and predict the impact of corrective measures; 4) develop a plan of action; and 5) determine the ROI of such actions. Using the ELLA®, organizations enhance the value of their human capital, reduce their exposure to employment related liabilities, and improve their ability to achieve business objectives.

For more information about HR audits, contact Mr. Ronald Adler, President-CEO, Laurdan Associates, Inc., 301-762-5794, radler@laurdan.com

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GLOBAL RANSOMWARE ATTACK COULD COST BUSINESSES ALMOST $200BN collaborate with Cambridge University and CyRiM founding members on this groundbreaking research.

Quantifying potential harm caused by cyber threats to corporations and their insurers has been a challenge due to lack of data. The “Bashe attack” report exemplifies a sound methodology of applying expert knowledge in estimating economic losses caused by contagious malware to sweep through many organisations. It sheds light on potential losses to insurers through both affirmative and non-affirmative covers.”

Dr Andrew Coburn, Chief Scientist at the Cambridge Centre for Risk Studies, said “The scenario we have prepared with Lloyd’s, CyRiM and other contributors highlights the potential for loss that can occur from contagious malware attacks. It www.chart-exchange.com

challenges assumptions about cyber preparedness and the adequacy of security measures that companies have in place. This report is intended to deepen the understanding of cyber risk liability and aggregation risk in the portfolios of insurers. We hope that this contribution will help improve the understanding of cyber risk and lead to better resilience to attacks like these in the future.”

Alan J. Wilson, CEO of MSIG Asia said, “Asia is more connected than ever before but information on corporate cyber-attacks is not yet so widely available. This report illustrates the potential reach and impact of cyber-attacks which can serve as a useful guide for organisations and governments. MSIG is proud to play a part in this report as we believe that education on cyber risk should be an on-going effort in collaboration with academia, technology, insurers and governments, for us to build a more resilient society in the future.”

Elizabeth Geary, Global Head of Cyber at TransRe, said “This research highlights the need to pay close attention to systemic risk across all lines of business, not just within the cyber tower. Malware respects no boundaries, whether geographic, industrial or legal. As companies increase their reliance on technology, it is essential they increase their defences against challenges such as malware, and effective cyber insurance is a critical component of that defence. Similarly, the insurance industry must also acknowledge and appreciate the potential for systemic

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risk, in addition to monitoring loss frequency and severity. This report seeks to quantify that systemic economic and insured impact. It represents an important step forward in our understanding, and provides a benchmark for business interruption and its associated costs”.

Andrew Mahony, Regional Director for Aon, added: “The global WannaCry and NotPetya events of 2017 alerted organisations to their potential susceptibility to widespread cyberattacks. There remains, however, a reluctance to move forward with the necessary risk prevention and transfer measures without a clear picture of the financial impact such an attack might cause. The Bashe report addresses this issue, demonstrating with precision how an attack unfolds and how it affects insureds and insurers.

The report sets the standard that organisations should aspire to when assessing their own cyber exposure.”

Sébastien Heon, Deputy Chief Underwriter Officer, Cyber Solutions at SCOR said: “We are delighted to contribute to the Bashe report, which expands the knowledge and understanding of widespread Cyber events – particularly exposure to Business Interruption as experienced during real-life incidents such as NotPetya and WannaCry. This report has brought together a multidisciplinary team of academic and (re)insurance industry experts from across the world, thereby providing a global view of cyber risk.”

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LLOYD’S OF LONDON

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