4 February 2015

Welcome to this week's Post, and our cover story focuses on European Union legislation and specifically, the General Data Protection Regulation. This is set to come into force shortly with companies involved in data breaches being hit with potentially swingeing fines. These will amount to 4% of annual worldwide turnover or €20m. It is also expected that the UK will become more like the US in terms of taking up far higher levels of cyber insurance.

The topic is also under scrutiny by QBE, with its TMT portfolio manager James Tuplin, discussing what role insurers can play when the General Data Protection Regulation is introduced. He describes it as a 'cyber game changer', noting the impact it will have on data privacy and control issues and pointing out opportunities for insurers in risk transfer and advisory services.

Meanwhile, the issue of unrated insurers is again in the news. The Financial Conduct Authority has fined five individuals and two insurers that were operating in the solicitors' professional indemnity market £15.5 million. The failure of the companies left hundreds of lawyers without insurance and reveals the importance of proper checks on authorisation and solvency.

Insurers will, however, be breathing a sigh of relief after the release of a paper on vehicle emissions from forensic engineering specialists GBB UK. This looked at the risk of exhaust gases being released into the vehicle after a collision, a common reason for keeping them off the road. It was asserted that not being able to shut the tailgate could lead to an escape of poison gas, something fraudsters could also capitalise on. However the research proves this is not the case.

The UK insurance market is seeing growth in wholesale business, with big names including Aviva, Axa and RSA all stating they have expansion plans in this area. Pundits are claiming that tough conditions in personal and commercial lines making niche wholesale classes increasingly attractive.

The C-suite this week features Bill Cooper of Lloyds Bank, who writes on what insurers need to be aware of if the UK exits the European Union. Brexit will have far reaching implications and our current membership makes cross border trading a known quantity. Leaving the union will mean a new regime and also has cost implications.

Our other piece has broker Paul Moors, CEO of Bollington Group, standing up for his trade body, the British Insurance Brokers' Association, which he feels has done much to promote the broking industry and that its recent manifesto is both timely and relevant. He urges brokers to back Biba and says sniping will only damage the industry, when with so much at stake, they should be focused on unity.

Heading to Scotland for the North of the Border article, solicitors BTO look at the recent case of Craggs v RHASS & SEP, which shows that the authorities are clear that a convicted party has a statutory right to seek to prove they did not commit the offence of which they were convicted.

In the PostPlus section, there is in-depth coverage of the world of micro-insurance, a global trend bringing low-cost life cover to millions of individuals on low incomes. But, the sector need to expand and to start selling a broader range of products - will this start happening and have insurers done enough to ensure they are trusted?

We also cover issue as a PDF. Enjoy the read!