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If cyber insurance was a person their young age would seem at odds with the sheer number of momentous events they have experienced during their lifetime. It’s a dichotomy at the heart of cyber insurance – that contradiction between the coverage’s relative youth and tumultuous trajectory.

Discussing the evolution of the cyber insurance market, Christopher Burgess (pictured), director of cyber at Markel International – which is celebrating 10 years of serving the sector – highlighted some of the landmark years in its vibrant and varied calendar. Looking at the formative cyber events that have shaped the last decade, he said, it’s impossible not to mention ransomware.

Ransomware – still a driver of change for the market

Ransomware continues to be a game changer for the cyber insurance market, Burgess said, and the majority of cyber claims are still paid out for ransomware losses. The threat has been around for a while but the emergence of cryptocurrency and Bitcoin which has allowed malicious actors to demand traceless payments led to an uptick – culminating in a seminal year during 2017 where it started to spike in both frequency and severity – while its profile was raised by several high-profile incidents, among them WannaCry and NotPetya.

“I think that growth in ransomware drove the market in a couple of ways,” he said. “It required underwriters to upskill significantly to gain cyber knowledge, and it put greater scrutiny around certain controls to help defend against and mitigate the ransomware threat. I think clients suddenly realised the value of cyber insurance during that time and we saw a huge growth in the portfolios of the cyber insurance market globally.

“[…] And as rates increased, which we saw culminating in 2021/2022, clients themselves started to increase their security controls, their IT budgets but also their insurance budgets to buy the cyber coverage they’ve begun to really value as part and parcel of how to protect a company and its balance sheet from cyber attacks. So, I think really drove the market and that stems back to ransomware and when that started to really take off in 2017.”

Twenty-nineteen was another landmark year in the cyber insurance timeline, Burgess said, as it saw the material take-off of double ransomware – where the insured suffers not just having their data encrypted in return for paying a ransom but also facing having that data exfiltrated. That can and has cost clients and insurers more money, driving up claims costs – which is where the corrective market conditions of 2021 and 2022 came from.

“It’s interesting looking back at these seminal years in the ransomware story which have really shaped where we are as a market today,” he said. “NotPetya and WannaCry in 2017 were widespread attacks that took place and are widely acknowledged as nation-state-backed attacks.

“That was a key moment for the market because that started the debate, in my opinion, about war and about war exclusions, and about the extent to which insurers feel comfortable covering certain elements of nation-state attacks. It started that conversation which continued earlier this year with the Lloyd’s bulletin and the requirement to put certain war exclusions into policies.”

The output around this bulletin is work that really started back in 2017 when those questions were first being asked within Lloyd’s, within the wider London insurance community, and around the world. Those pivotal years in the cyber insurance calendar continue to resonate across the cyber insurance sector, he said, and the market as a whole is continuing to see how these will play out in 2023 and beyond.

How Markel International’s cyber proposition has evolved

The development of Markel’s cyber insurance proposition has played out in the context of how the broader cyber landscape has developed – and it will evolve as that landscape continues to change. Examining that evolution, Burgess highlighted the irony that consistency has been the key to navigating the ever-changing sector. In cyber, he said, things are changing constantly which is why providing a consistent offering is such a critical consideration for brokers and insureds alike.

“We’ve had a consistent offering for over a decade now in cyber,” he said. “We’ve never pulled out of writing or insuring a certain industry or a certain territory. We’ve been consistently there for our broker partners and clients, we’ve been consistent in paying claims and we’ve kept a consistent team together.

“Remaining competitive in this market while remaining profitable is quite challenging and there are some competitors we’ve seen in the last decade that are no longer here because of that challenge. Our consistency has been the key to us continuing to achieve that. I often feel we’re spinning quickly because there’s always so much going on internally that we have to do to make sure we keep our position as a market leader in cyber.”

Burgess noted that when Markel’s London Wholesale  division  first started writing cyber a decade ago, the coverage was still relatively new and so there was little appetite and slow growth in the market. However, he said, in recent years, it recently hit the important milestone of writing over USD $100 million of cyber premium at the Syndicate in London and it’s now well on its way to reaching the USD $200 million mark.

“We’re also on the cusp of releasing our third cyber product at the Syndicate here at Markel in London, which we will do this year,” he said. “I think that will be another big milestone for us in cyber at Markel.”

Looking at the makeup of the market, Burgess highlighted that people coming into the cyber market tend to either hail from a financial lines background, like himself, or be new to the insurance market. Given that the market is still so young and that cyber as a product has only been around since the late 90s, he said, there’s a high value placed on having a skilled, experienced, and dependable team.

“Having a supportive environment where we invest in our people means that our people stay and gain experience and training and expertise,” he said. “And I think brokers do genuinely value that and value the fact that they can get service from that. We’ve expanded our team as the portfolio has grown which has been a big success as it means we can keep servicing that business. Retaining talent and developing the next generation of cyber underwriters is a challenge for the whole market but I like to think that here at Markel, we’re doing our part.”

Allianz has released its comprehensive net-zero transition plan, reaffirming its commitment to achieving net-zero emissions by 2050 within its investment and property and casualty underwriting portfolios and by 2030 in its own operations.

This plan outlines specific intermediate targets for 2030, focusing on reducing greenhouse gas (GHG) emissions across Allianz’s business operations, investment portfolio, and P&C insurance business.

Additionally, Allianz announced its goals, which are to strengthen its engagement with customers and investee companies in their journey towards net-zero emissions, expand investments in renewable energy, low-carbon technology, and sustainable mobility, and advocate for climate action alongside partners, the financial services sector, other industries, and policymakers.

Key elements of the Allianz transition plan include a commitment to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions in the commercial insurance segment by 2030 compared to 2022. Allianz plans to provide coverage for emerging hydrogen technologies and invest an additional €20 billion in climate and cleantech solutions to align with EU sustainability regulations.

Net-zero targets for investments, businesses, and operations

For Allianz’s corporate insurance business, which includes large company customers reporting GHG emissions, the company aims to reduce emission intensity by 45% by 2030. In retail motor insurance, Allianz targets a 30% reduction in carbon emissions in nine key European markets by 2030 compared to 2022.

Allianz’s commitment also extends to its investment portfolio, with targets to reduce absolute owned emissions by 50% compared to the 2019 baseline for listed equity and corporate bonds by the end of this decade. All directly held real estate assets and joint ventures will align with the 1.5°C pathway, and GHG emissions from investments in corporates (both listed and non-listed) will be reduced by 50% compared to 2019.

The plan also emphasizes emissions reduction in high-emitting sectors such as electricity utilities, oil and gas, steel, and automobiles, achieved through active engagement with companies and sector-wide initiatives.

Allianz underscored its commitment to achieving net-zero emissions in its operations across 70 countries by 2030. Measures include reducing climate gases per employee by 70% compared to 2019, transitioning to 100% green electricity from 2023, and adopting a fully electric corporate car fleet over time.

Allianz also touted its net-zero plan as a reflection of its determination to drive transparency, trust, and lead by example in the journey toward full decarbonization of its insurance and investment portfolios by 2050. Annual progress reports will provide updates on Allianz’s environmental goals.

“With extreme weather events, this summer has reinforced the urgency to act on climate change,” Allianz CEO Oliver Bäte said. “Governments, businesses and individuals must work together to build resilience and limit global warming to 1.5°C. Therefore, at Allianz, we are committed to delivering on our own net-zero targets, as well as partnering with our clients and investee companies in their transition. We believe our intermediate targets will help us realize our growth potential and contribute to a healthier, more secure future for everyone.”

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Insurtech UK has today announced the appointment of its first-ever CEO, with Melissa Collett (pictured) taking the reins of the insurtech trade association.

In a Press release, Insurtech UK noted that Collett, who steps into the CEO role with immediate effect, will drive its mission of transforming insurance through technology and making the UK the global leader for insurance innovation. Among her responsibilities, she will look to maintain and expand Insurtech UK’s relationships with key stakeholders within both Government and regulators.

In addition, Collett will support the further development of Insurtech UK’s membership base – which currently consists of over 100 companies, including 100 insurtech businesses and 30 partners both from the traditional insurance space and industries which serve the insurance market – while strengthening its existing network and collaboration between insurers and insurtechs.

Commenting on her appointment, Collett – who most recently served as executive director for professional standards at the Chartered Insurance Institute (CII) where she spearheaded the Digital Ethics Companion – said: “This is a crucial time for the sector. AI and tech innovation is firmly on the government agenda and the UK ecosystem is uniquely placed to transform the way insurance works.

“I have seen the exponential growth of the sector firsthand and how it can make a real difference to consumers and businesses. The recent report that our partners McKinsey & Co produced around the sector, outlines that growth opportunity. I am very excited about leading an organisation that truly represents the future of insurance.”

Also commenting on Collett’s appointment, John Warburton, Insurtech UK co-chair and CEO of Konsileo, said “Alongside a proven track record in the industry, Melissa’s previous role at the CII means she understands the challenges and opportunities facing a membership organisation. Insurtech UK has gone a long way in just five years, and we want to take it to the next level. With Melissa’s energy, network, and strategic vision, she is well-placed to do just that.”

Co-chair Luise Barile, CFO of Many Pets added: “Melissa has the profile and experience to help us navigate the challenges ahead and help promote our sector further to its broad and diverse stakeholder groups, ensuring we provide a robust voice for our sector.”

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Insurtech Vesttoo, which has faced turbulence since it emerged that alleged fraudulent letters of credit (LOCs) had been used via its platform, has alleged that its CEO, other former executives and third parties engaged in “pervasive and systemic misconduct” and has claimed to have uncovered “conspiracy”.

The allegations came as Vesttoo filed its first interim bankruptcy report in the United States Bankruptcy Court for the District of Delaware.  

In the report, it was alleged that former Vesttoo executives Yaniv Bertele (former CEO), Alon Lifshitz (former CFE), Udi Ginati (former senior director, capital markets) and Josh Rurka (former senior director, Asian markets) were “directly involved” in creating fake documents and forging identities.

Employees of China Construction Bank, as well as other banks and individuals associated with the Company’s largest investor, Yu Po Finance, were also alleged to have engaged in wrongdoings, according to a news update shared by Vesttoo. 

While it was initially claimed that the source of fraud was external, the investigation found that that the individuals stated above knowingly directed, instigated and engaged in the fraudulent activities themselves.

Vesttoo fraud allegations – insurtech sets out next steps

The report highlighted the steps that Vesttoo has taken to ensure that appropriate institutional financial security controls are in place to resolve its contractual obligations on a commercial basis. It also described the development of a plan for reforming and conducting its business going-forward, named “Trade Forward.”

“While we obviously remain very troubled by the misconduct of those that the company and markets placed great trust in, we are pleased that the investigation has confirmed that this scheme was confined to a small subset of the Vesttoo leadership team,” said Ami Barlev, Vesttoo’s interim CEO.

“The company’s technology platform and its core value remain strong, and we intend to use it and our deeply experienced insurance professionals to emerge from this process as a trusted partner.”

Co-founders of Vesttoo speak up against “opportunistic parties” #insurancenews https://t.co/MdUACxZI2C

— Insurance Business America (@InsuranceBizUS) August 30, 2023

The pair have claimed that “opportunistic parties exploited the temporary crisis the company was facing to advance aggressive and unilateral actions aimed at taking control of the company,” according to reports.

In much the same way that everybody finds their own route into the insurance market, everybody has a unique path to recognising the role they have to play in becoming part of the diversity, equity & inclusion (DE&I) solution. For Jhan D. Doughty (pictured), global head of DE&I at Everest, the journey started when she began her career almost 20 years ago, working as a clinical mental health counsellor serving individuals with mental and physical disabilities.

“This was an honour as I valued the opportunity to support individuals through counselling to achieve their personal and professional goals,” she said. “After I graduated with my doctorate, I completed a research post-doctoral fellowship and conducted HIV/AIDS education with persons of colour in New York and Connecticut. I learned the value of engaging individuals through that research and loved working in the communities I served.”

From there, Doughty transitioned to an “amazing” career in higher education working in roles supporting student recruitment, professional development, and retention at public research universities. It was during this time that that she also worked as a professor teaching and conducting DE&I research and developed skills in grant-writing.

“I entered the non-profit and corporate sector working on a national contract aimed at DE&I for students in K-12 in the US,” she said. “There, I learned the joy and value of creating opportunities for underserved individuals as I developed national internship programs for undergraduate and graduate students and established research institutes at minority-serving institutions. Now, over 10 years later, I am thrilled to witness more than 100 former students thriving in their professional careers.”

Today, working at Everest, Doughty said she is pursuing “the work of [her] dreams” — developing and implementing DE&I initiatives on a global scale. She highlighted that working with her insurance industry colleagues in multiple countries and learning what DE&I means in various cultural contexts is what keeps her energised and inspired each day.

Looking back on her DE&I journey, she pinpointed some of the stand-out inspirational moments afforded by her career to date. These include such highlights as presenting her research and work at the International HIV/AIDS conference in Barcelona; launching research institutes at two Historically Black Colleges and Universities (HBCUs) in the United States; presenting strategies on recruiting and retaining diverse employees at the White House HBCU Conference; being named one of the Top 25 Women in Higher Education by Diverse Issues in Higher Education – and now serving as the inaugural global head of DE&I for Everest where she is, “fortunate to engage in work that underwrites opportunity each day.”

What are the key DE&I challenges facing insurance businesses?

Identifying some of the key challenges she sees facing insurance companies looking to create healthy DE&I strategies, Doughty noted that the insurance industry is ripe with interest in DE&I.

“Yet our biggest challenge is attracting new talent and informing candidates about the vast available career opportunities,” she said. “We solve for this by providing high school and college students with exploratory opportunities such as internships and exposure programs so that they can witness the work first-hand and see that the insurance industry is a viable and financially rewarding career option for them. Everest shares in this philosophy, and I am proud to shepherd this work.”

What do insurance businesses get wrong about DE&I?

For insurance businesses looking to move the dial, understanding what not to do is just as important as knowing the right steps to take – and Doughty shared insights into both. Highlighting some DE&I programme approaches that “continue to miss the mark” she advised against utilising a one-size-fits-all approach. Each organisation is different, she said, and engaging in this work requires time listening and learning about what matters most to different constituents and designing/co-creating solutions that will best serve each group.

She added: “I’ve made it a habit to listen, make iterative changes along the way and then create a strategy and execution plan.

Not engaging key stakeholders in the DE&I process is another area where organisations looking to make a change fall down. A big piece of DE&I work is relational, Doughty said, and it is important to have a clear sense of the individuals who will be affected by the work, and to understand their thoughts and perspectives.

“If individuals co-create solutions with you, solutions will be retained long after you leave,” she said. “While I have years of experience creating DE&I strategies and initiatives, each organisation and environment that I enter is a new one and requires a tailored approach. I can only succeed if I involve others, and to witness success in action is amazing.”

What do insurance businesses get right about DE&I?

Sharing some of the most successful strategies to DE&I that she has seen – ones which consistently create value – Doughty identified the value of:

1. Having a clear strategy with tactics and accountability measures. Often, she said, organisations will only have tactics, but no vision or strategy to serve as the foundation for the work.
2. Accountability being key. While sometimes challenging to identify and implement, she said, committed individuals seek ways to measure their progress to ensure they are meeting the mark.
3. Being an authentic leader. People want to work with and alongside someone whom they can connect with, she said. Bringing your full self to your work is truly DE&I in action. “Each one of us is unique, and if you bring your culture and experiences to the work you’re doing and are open to examining your biases and growth areas, you will be successful.”

The role of the Dive In Festival

The power of the Dive In Festival which is now in its ninth iteration – and runs from 26-28 September 2023 – is one emphasised by many DE&I leaders – and Doughty is no exception.  

“DIVE In is invaluable,” she said. “The opportunity to work on one of over 35 country teams and learn from over 130 DE&I events is unique. The energy and excitement around the launch of DIVE In 2023 is palpable and my colleagues and I can’t wait to get started. Joining the DIVE In Global Steering Committee and leading Everest’s efforts is a new milestone in my DE&I journey.”

Offering words of encouragement for those leaders looking to take up the mantle of championing DE&I within their insurance businesses, Doughty had the following advice to offer.

“Stay authentic, energised, focused and consistent,” she said. “Leadership in DE&I can happen no matter what industry you’re in or what role you hold. We need diverse individuals who are true to themselves and passionate about creating inclusive spaces and ways to foster belonging. If you are one of those individuals, then the industry needs you and I look forward to working alongside you.”

Registration for Dive In 2023 is now open here.

The MGA giant DUAL has today announced the appointment of Simon McGinn (pictured) as CEO of its UK business. The appointment, which is subject to regulatory approval, will see McGinn take up his new role on January 1, 2024, reporting to Richard Clapham, CEO of DUAL Group.

McGinn joins the business from Allianz where he spent 19 years, most recently as CEO of Allianz Commercial, Allianz UK before stepping down earlier this year. In a Press release, DUAL noted that the move is a “key appointment” that will see McGinn help lead ambitious plans to transform DUAL’s UK business, which currently underwrites £700 million GWP across 30+ business lines.

Commenting on the appointment, group CEO Clapham said DUAL is delighted to welcome McGinn to the business and highlighted that attracting somebody of his standing is a strong endorsement of the potential to grow its “already significant” UK business.

“Simon’s leadership skills and proven expertise makes him the perfect person to lead our UK business going forward,” he said. “He brings an exceptional knowledge of the UK insurance landscape, its evolving trends and the emerging opportunities they present. Simon’s vision will see us invest further in the people, technology and data needed to provide our brokers and their clients with expertly tailored products combined with an exceptional digitally-enabled service.”

CEO of Howden Group, David Howden also commented on the appointment, noting that in the 25 years since DUAL was first launched in Spain, it has grown to operate in 21 countries, underwriting over £2.5 billion in premium.

He added: “Under Simon’s leadership, we now have the opportunity to build regionally across the UK, by attracting the very best talent to ensure we are delivering the quality underwriting results we are known for whilst growing the UK business to £1.5 billion GWP. It is an exciting moment for DUAL.” 

Discussing his decision to join DUAL, McGinn said he is excited to be joining one of the world’s leading MGAs. He noted that amid changing broker and client expectations, DUAL has proven itself to be a business with “a strong sense of purpose and direction” and he said he is looking forward to working with the leadership team to continue the growth they have already seen in the UK.

“As we’re looking to expand the business,” he said, “I am sure that DUAL’s people first and empowered culture, combined with its strong focus on underwriting excellence, will continue to attract capacity providers, brokers and great people to the business.”

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In its time and turn, the insurance sector has played host to a myriad of leaders, each of whom has made their own stamp on the market and played their part in its ongoing evolution. From conversations with retired or soon-to-be-retiring leaders across the sector, it has become apparent that insurance operates its own little ‘Hotel California’, where you can check out any time you like, but you can never leave.

The pleasant irony that it is the same industry which – sometimes proudly, often ruefully – wears the distinctive trademark of being one that people “fall into” that is offering so many individuals such lasting and fulfilling careers is not to be ignored.

Last week, the British Insurance Brokers’ Association (BIBA) marked the retirement of its longest-serving chief executive Steve White in style at the Tower of London. It was a fitting venue for the occasion which saw executives, government officials and familiar faces from across the sector come together to pay tribute to an insurance stalwart who has worked tirelessly to strengthen the reputation of the insurance broking market.

Steve White’s accomplishments speak for themselves – under his tenure, the BIBA conference grew significantly, becoming the largest insurance broking event in the UK and one of the biggest in the world. Alongside this, he championed diversity, equity and inclusion initiatives within the association while helping BIBA become a one-stop-shop for brokers, politicians, media, and the regulator on insurance broker issues.

However, during the course of the evening’s speeches, two things were thrown into sharp relief. Firstly, that BIBA is in incredibly safe hands as Graeme Trudgill steps up as CEO. And secondly, that as important as every one of the above accomplishments is, what people remember most is the spirit in which such milestones are delivered. The ability to take your job very seriously without taking yourself very seriously is a rare ability – and one on full display from Steve White, Graeme Trudgill and the wider BIBA team.

The diverse array of personality types, skills and backgrounds at play in the industry writes off the idea that there is any specific set of characteristics inherent to great insurance leaders. But while not mandated, there is a fine through-line of good humour, energy and optimism that connects these leaders and, more importantly, connects them with the people around them.

Now more than ever, the profession needs great leaders as the external market conditions facing insurance businesses and their customers continue to depict a tumultuous and challenging horizon. But this cannot afford to be limited to C-Suite executives, general managers and others in positions where their responsibilities spell out their leadership duties. To paraphrase the legendary signal sent by the British naval commander Horatio Nelson, insurance expects everyone will do their duty.

This duty is such – not just that insurance professionals will recognise, support and celebrate the leaders in their midst – but also that they become them. The gauntlet has been thrown down not just by the 100 global insurance professionals recognised by Insurance Business this year but also closer to home, in the recent Rising Stars report which recognised no less than 52 upcoming industry leaders.

The drive to find the next generation of Steve White’s who will look to support the insurance industry while enabling the next stage of its evolution is being fostered by the Insurance Cultural Awareness Network (iCAN) which will host its Aviva-sponsored Elevate Conference – Empowering Gen Zs in Insurance – next week.

Whether it’s through industry events, internal projects or broader financial services initiatives, it’s never too early or too late to take up a leadership mantle. And from conversations across the market, I can attest to the value of doing so as among the lives you will change, might well be your own.

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You still have time to participate in the 2024 Elite Women. This annual report showcases women from all backgrounds who have gone above and beyond in their careers in the previous 12 months.

Submissions will be assessed by an esteemed panel of judges:

• Vivine Cameron, Education Partnerships Manager at the Chartered Insurance Institute (CII)
• Claire McDonald, Chair (and Member of the Executive Board – HDI Global SE) at the Insurance Women’s Inclusivity Network (iWIN)
• Mike Keating, Chief Executive Officer at the Managing General Agents’ Association
• Ajay Mistry, Co-Founder and Co-Chair at iCAN: The Insurance Cultural Awareness Network
• Maxine Goddard, Senior Vice President, Strategic Distribution & Development at Sompo International
• Christopher Croft, Chief Executive at LIIBA – London & International Insurance Brokers’ Association

Submit a nomination on or before Friday, 15 September.

The digital risk processing platform Cytora has today unveiled its integration with AI-powered property insights provider CAPE Analytics. Under the terms of the integration, CAPE’s commercial property data APIs will be accessible on the Cytora platform, bolstering insurers’ ability to assess and manage risks associated with commercial properties.

In a Press release, Cytora noted that by integrating CAPE’s APIs into the Cytora platform, insurers can access detailed property information, enabling them to make more informed underwriting decisions and optimise their risk management practices. In addition, this will allow insurers to harness advanced analytics and machine learning to streamline underwriting processes, bolster risk management practices, and make data-driven decisions for commercial property risks.

Commenting on the move, Cytora COO, Juan de Castro, highlighted that Cytora’s commitment to innovation “aligns perfectly” with the integration.

“By integrating CAPE Analytics’ commercial property data APIs into our platform, we’re equipping insurers with the tools they need to make more informed decisions about commercial property risks,” he said. “This collaboration strengthens our ongoing efforts to provide insurers with the most advanced solutions, ultimately enhancing their ability to manage risks effectively.”

Busy Cummings, chief revenue officer at CAPE Analytics, also commented on the news and said: “We’re excited to see Cytora continue to push the envelope of innovation in the commercial property insurance space and look forward to supporting carriers through this direct integration. 

“Decisions involving commercial property risk are often complex, making modernization and automation a challenge. Together, Cytora and CAPE are providing both the platform and the insights required to modernise commercial property carrier workflows and drive the industry forward.”  

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