In the first of our Insurance Insights series, Azon’s Consultant for Insurance and Wealth James Mackey examines the Cyber Risks and the Irish Insurance Industry.
Over the next few weeks I’ll provide my thoughts and commentary on various aspects of Ireland’s Insurance industry across the areas of General Insurance, Life & Pensions, Actuarial and Underwriting.
Having spent over two years recruiting in Australia and then returning home to develop Azon’s Insurance and Wealth division, I notice many differences between the diversification of industry that exists here relative to Perth, which is an economy heavily dependent on commodities and the price of oil. Within Specialty Insurance, there are some similarities as the oil price drives appetite for risk coverage as businesses are either growing to increase output or consolidating what they already have.
I want to mention an article I read recently about technology and the part it will have to play in the car insurance industry. It was a theoretical opinion on how premiums may be linked to the car itself rather than the owner as our society moves towards a driverless culture. From reading that article, my mind wandered to the downside of innovation in technology and got me thinking about a growth area in the insurance industry due to it’s importance to companies all over the world – Cyber Risk.
Media coverage of data breaches, hacked databases and even personal devices belonging to celebrities has put this at the forefront of the public forum and has led to the innovation and development of new strategies to mitigate against and deal with this specific threat.
Every specialist insurer has a Cyber Risk division with every commercial and corporate broker advising their clients on this risk. Within the last few years, PLCs have begun to grow their Risk Management teams, and Enterprise Risk Management professionals are providing the framework to manage these issues.
Throughout my conversations with underwriters specialising in Finance, Energy and Cyber Risk it is apparent that this type of risk is viewed as something that could quickly become a systemic event. Despite that, the Insurance industry is presented with a huge opportunity to grow through effective underwriting strategies and the use of ground-breaking technology.
Discover Azon’s open roles within the Insurance sector here.