ldoherty

FM’s in-house claims team responded quickly, working in partnership with BMC Moerdijk to find the optimal solution. BMC Moerdijk operates with just one production line, so time was of the essence. The company faced a choice: repair or replace the rotor. Variables included the upfront costs, but also the longer-term costs of potential downtime. After analyzing the financial and business impact, BMC Moerdijk and FM agreed that replacing the faulty rotor would significantly mitigate the loss, because it meant less downtime.  

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Even among medium and large organisations, which typically have greater resources, the numbers are patchy. Sixty-two percent of medium-sized firms report being insured against cyber risks, compared with 54 percent of large enterprises. Experts caution that larger firms, while often more confident in their internal defences, may still lack adequate coverage for major losses like those now confronting M&S.

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Elsewhere, Markel launched FintechRisk+, an insurance policy tailored for fintech companies. This policy offers comprehensive coverage, including financial services and technology liability, directors and officers (D&O) liability, theft, and cyber protection, with limits up to US$20 million. 

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Insurance premiums drop as coverage grows

Falling premiums and retention rates in 2024 enabled buyers to raise policy limits and seek broader protection. In the UK and EU, average rates on line (RoLs) declined 0.16%, with similar drops in the US, Asia, and MENA. Meanwhile, policy limits rose across all regions as a percentage of enterprise value, with the US seeing the largest increase at 5.48% over 2023.

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“We have delivered good growth, solid underwriting margins, and a strong balance sheet – a combination that continues to support excellent returns and more predictable outcomes. These are important indicators that our business is working – for customers, for shareholders, and for our people,” he said.

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In Asia, underlying net income was C$197 million, an increase of C$20 million or 11%. Asset management and wealth contributed C$7 million from higher fee income driven by increased assets under management. Individual protection added C$13 million, driven by new sales, in-force business growth, and joint venture performance, partially offset by lower surplus earnings and unfavorable international mortality experience.

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“We’ve gone from a hard market, where everyone was re-evaluating risk post-COVID, to something more nuanced,” Winder says. “Yes, there’s more capacity now, but landlords are still contending with vacancies, re-lettings, and in some cases, falling rental values.” 

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The financial sector experienced notable impacts, with recovery costs averaging $2.58 million per incident in 2024, up from $2.23 million in 2023. Ransom demands in this sector varied widely, ranging from $180,000 to $40 million, with an average demand of $6.9 million. Additionally, the sector faced significant downtime costs, estimated at $32.3 billion since 2018.

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Highlighting the importance of liability coverage, in relation to cyber risks and professional services, Cotton explained. “Cyber risks can go uninsured, even though many charities now hold sensitive data on employees, service users, and third parties,” she said. “Professional liability cover is another key area, particularly for charities providing professional services such as advice, guidance, or counselling. Without it, they could be exposed to claims of negligence that aren’t covered by public liability insurance. Trustee liability insurance also helps to protect trustees and senior staff from allegations in relation to their governance or financial management.”

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“We are not very good in terms of being the fastest or the first mover,” Jain said, adding that Berkshire prefers to “wait and see until the opportunity crystallises.” His remarks suggest that the conglomerate, which is currently navigating profit pressure and a major leadership transition, is unlikely to make large-scale AI bets any time soon. 

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