Author: modula

A RKH Specialty survey focusing on evolving insurance risks highlighted that 80% of insurance professionals are witnessing an increasing need for specialist risk coverages to provide better- targeted solutions for a wide range of P&C exposures. Of that significant percentage, about 39% recognised that the increasing need for specialist risk coverage is growing fast.

The survey also uncovered that supply chain disruption was the top property risk exposure with 61%, with flood and tornadoes following with 30% and 9% respectively. Cyber was identified as the top casualty exposure at 70%, with product risk and drones highlighted as the next largest risks at 11% each.

Conducted at RIMS 2015, this survey represents the views of US-based insurance professionals, its results are also reflected by other international research: nearly half (46%) of financial services professionals globally named cyber risk as their number one concern, a record high level according to a survey by DTCC, one of the world’s largest clearing houses. A Deloitte survey also validated the global concern surrounding supply chain disruption, identifying that there are now more risks to the supply chain and risk events are more costly.

“Losses stemming from cyber-related attacks and business interruption can be catastrophic for individual business,” said Barnaby Rugge-Price, RKH Specialty’s CEO. “Healthcare and retail have been the major buyers in the cyber space to date but we are seeing an increasing conversion rate across the whole of our portfolio. After a number of years of looking at the offering, clients are increasingly deciding to purchase the cover as the product has improved and the frequency of attacks has continued to increase. There has also been a heightened focus on the business interruption aspect, where cyber attacks can cause whole facilities to shut down. But whether cyber related or not, any interruption to the supply chain can cause a disproportionate loss. The survey highlights the importance of specialist insurance for a whole host of emerging risks.”

With 47% of survey respondents indicating that they tend to turn to domestic US brokers for their specialist risks and other emerging world markets in close pursuit, London offers a unique ability to support that demand. Barnaby Rugge-Price comments that U.S. clients tend to “seek the best value from their insurance spend by tailoring coverage around their firms’ specific exposures and needs. Our aim is to respond to the increasing requirement with specialty product advice and placement services around the globe. We will continue to work with our markets to ensure we are responding to each request, providing real value in both coverage and capacity.”

The full survey results can be viewed here.

Following the merger of RKH and Hyperion, RKH Specialty has been conceived to combine the specialty lines expertise of Howden and RKH, improving both the breadth and depth of products and services.

With British Airways and TV5Monde recently suffering cyber attacks, they join a growing list of mammoth organisations that have been targeted. Attacks on this scale make headline news, however there is little of the effects on smaller companies. The costs of recovery, informing customers and potential fines to smaller companies can be debilitating. RKH offers insurance both in the UK and US to protect against the costs and provide expert guidance to ensure businesses emerge with their reputations still intact.

Smaller firms “are exposed to many of the same attacks as much larger enterprises, yet they don’t have the security expertise and resources available to larger firms” comments Maxim Weinstein, a security advisor at Sophos in a BBC article. In fact, figures from Sophos indicate that around 30,000 websites are being targeted by cyber attacks every single day, with a single breach for small companies estimated to cost more than $100,000 (£67,758) or as much as $1.4 million (£948,618) for large companies (McAfee report). With cyber thieves churning out around 250,000 new virus variants daily, cyber security is an issue worth moving up a small company’s priority list. Most of the lower level threats can be defended against with anti-virus software, firewalls, spam filters and crucially, keeping devices updated, however some attacks are inevitable.

A business can be defined by its reaction to a cyber breach. Reaction is key, not only in terms of customer opinion and brand integrity, but also to avoid legal and regulatory consequences. In the US, new legislation requires businesses to notify consumers within 30 days of a breach. In the UK, a business can be landed with a hefty fine by the Information Commissioner if they are found to have not handled the breach effectively. Even when outsourcing data handling, the responsibility for customer data lies squarely with the business in question. Knowledge gaps often exist between the advanced technology smaller businesses use and a lack of data security and breach expertise.

R K Harrison offers flexible solutions for all sizes of business protecting against the potential costs of a cyber breach, with immediate access to specialist advice when needed. The dedicated team have a wealth of wide-ranging cyber experience and are geared to deliver a crucial, quick response. Expert guidance ensures implementation of the correct procedures and fine-tuned communications; minimising chances of a fine and reputational damage. Access to a forensic team identifies the true extent of the damage, and pinpoints only the customers who need to be informed.

To find out more about cyber insurance, please contact David Rees.

The growth of the global economy and product distribution has led to a corresponding rise in multi-jurisdictional law-suits. Differing legal and regulatory standards in different territories create a breeding ground for legal action against product manufacturers and distributors. Regulators and lawyers are increasingly watching developments in other countries, further facilitated by digital communication via social media and public online databases such as the OECD Global Recalls Portal. RKH Specialty Specialty’s new Products Liability facility provides an insurance solution that responds to these developments.

Whilst international regulatory product standards offer the future prospect of greater harmony and clarity, the current reality is an increasing cost of compliance and certification for firms. This is particularly the case in the US, where recall standards are becoming more stringent under the Consumer Product Safety Commission’s newly enhanced powers, and the trend for extremely high damages payouts awarded by juries continues upward.

The statistics show that product related issues are not just related to high profile, high-tech and complex products, the vast majority of injuries are linked to a range of everyday household items. For example, the Center for Injury Research and Policy at Nationwide Children’s Hospital in Columbia found that nozzled bottles are responsible for an increasing number of injuries to children related to household cleaning implements. The U.S. Consumer Product Safety Commission identified extension cords responsible for around 4,700 residential fires, 50 deaths and 280 injuries a year. Indeed in 2012, there were 709,000 serious injuries caused by defects in beds, and 714,000 injuries related to tables and chairs in the U.S.

RKH Specialty Specialty’s new Products Liability facility provides cost-effective coverage for tougher liability classes such as E-cigarettes, trampolines, nutraceutical, furniture, electrical and consumer products. The facility is backed by Lloyd’s of London (recognised in over 40 Countries), and it offers the ability to provide state of the art enhancements that assist clients in mitigating and controlling their product liability exposures.

Contact Justin Whitehead to find out more.

Last year three times as many vehicles were recalled in the US than were sold in 2013. This is equivalent to 63,000,000 vehicles which if lined up bumper to bumper, would surround the world 6 times!

This is not expected to be a fluke year; recalls are predicted to increase even further. Reports anticipate that this is due to changes in car production – “parts are being shared between cars and manufacturers in volumes not previously seen before” which “could pose huge problems if a faulty part enters the chain” says Ian Fletcher, senior analyst at IHS Automotive.

Another contributing factor is the rapidly increasing complexity of vehicle design – a typical car contains about 30,000 parts and 10 million lines of software code. Manufacturers are consistently under pressure to make them safer, more environmentally friendly as well as satisfy consumers’ rising expectations of styling, power, handling reliability and gadgets. Meeting all of these requirements demands great complexity, making recalls “an industry challenge that will only intensify as vehicles integrate ever-more-elaborate hardware, software, safety equipment and creature comforts” as reported in the Harvard Business Review.

The threat of increasing recalls goes hand in hand with car manufacturer’s heightened caution of parts suppliers. This new level of threat is reflected in the growing trend for car manufacturers to mandate that parts manufacturers purchase recall insurance. Car manufacturers are looking at their suppliers with more scrutiny and considering ways in which the supplier can take more responsibility and ultimately potential cost in the event of a recall. This growing pressure on auto-parts suppliers to raise quality standards (as explored in the Insurance Journal) is heightened further when also contending with a more scrupulous National Highway Traffic Safety Administration. The recent proposal to nearly triple the NHTSA budget would more than double the office’s headcount, almost certainly leading to more safety defect investigations (Automotive News).

There are comprehensive recall insurance solutions available to protect automotive parts manufacturers anywhere in the world. The product protects against the cost of a recall as well as the installation costs and also provides specialist guidance throughout the recall process.

To find out more about our solutions for automotive parts manufacturers, please contact Rob Marshall.

Click here to download the brochure.

CEOs and CFOs of early-stage or start-up biotech and pharma companies most often mention security finance from investors, protection of their intellectual property and the conduct or regulatory authorities as their biggest issue. Typically such companies are offered simple commercial insurance package policies designed to be all things to all businesses, but often omitting protection for risks that life science companies identify as most relevant.

Working with insurers that specialise in the sector, Ian Thomson, RKH Specialty healthcare team’s life science consultant, is developing coverage that will be much more effective for small and start-up companies’ needs.

These enhancements are largely based on research and analysis from discussions with individual life science companies and further informed by Ian’s 27 years’ experience with GlaxoSmithKline. However it is a process of continuous improvement, Ian continues to have many and varied conversations with companies identifying specific coverage requests that are being developed by units in RKH Specialty and insurers. “It’s a real buzz” he says “to identify how much benefit can be brought to companies off the back of a simple conversation.”

For further information please contact Ian Thomson.

A restaurant insurance program designed in conjunction with a leading US-based international specialty insurer is showing remarkable growth in the fiercely competitive US restaurant sector.

With over 170 restaurant brands under its belt the Restaurant Recovery Program includes some of the leading American fast food chains providing against claims for food contamination. Take up of the programme has rocketed with the total gross written premium up over 80% since the programme’s launch. Furthermore, with the restaurant industry sales up 16% in the last 4 years, this is a market set to continue growing.

Designing bespoke insurance programs and facilities with international insurance markets is the core skill of RKH Specialty’ casualty team. Key to the success of these programmes is a process of continual review, a matter of examining performance data for every aspect of its performance at any point in the chain as well as its overall performance against competitors.

‘It really is a collaborative effort as much a competitive one. We work with the client to understand the challenges and bring the right partners to bear to address particular challenges and support the clients’ aims long term. Success is attributable to the high levels of understanding throughout program participants.‘ says Mark Colgate, Executive Director of the Casualty team.

RKH Specialty Casualty team provide tailored insurance solutions across a wide range of industry sectors and casualty lines. Find out more here, or contact Mark Colgate on 020 7456 9370.

The Wall Street Journal reports on an important artwork at San Francisco’s de Young Museum, thought lost in 2011, but now been repaired thanks to a lucky find and some extraordinary cooperation.

RKH Specialty’s Sir Mark Bowen, who died unexpectedly earlier this year, worked on the deYoung account, considering San Francisco his ‘home away from home’. The return of the statue to the de Young will be dedicated to his memory in a ceremony to take place in October.

Subscribers can read the full story here

A ceremony held at London’s famous Old Billingsgate market confirmed RKH Specialty as 2014’s Insurance Broker of the Year for the second time in three years.

The awards, organised by industry publication Insurance Insider, were judged by a panel of industry experts that tasked entrants to demonstrate their ability to grow business through client-focused expansion. With a track record of fourteen years of consistent growth, RKH Specialty showed how the stability of its employee-ownership structure provided a platform to focus resources on the design and delivery of consistently better results for clients.

RKH Specialty has placed a new healthcare and life science facility on behalf of Ryan Specialty’s Healthcare underwriting businesses. Support for the facility comes from the leading healthcare markets including Amlin, Chaucer, Catlin, Hiscox, Atrium, Renaissance Re and Dale. The facility creates the largest, single healthcare coverholder arrangement in Lloyd’s.

The facility can encompass a very broad array of healthcare and life science businesses including long-term care, allied healthcare, specialty and rehabilitation hospitals, as well as generic pharmaceuticals, branded pharmaceuticals, medical products, nutritional supplements and clinical trials. The facility offers limits for both healthcare and life science up to $25m.

Commenting on the deal Al Carter, RKH Specialty’s head of Healthcare said:

“This facility is the result of a detailed and pragmatic process. It provides Ryan Specialty’s Healthcare underwriting division with a platform to further grow its successful Sapphire Blue and Life Science Risk (LSR) programmes via the US broker community. In addition, it provides the Lloyd’s market with a stream of healthcare business underwritten by the recognised leading underwriters in their respective fields that otherwise would not naturally flow into Lloyd’s.

“The commitment from Ryan Specialty Group and the Lloyd’s underwriters broke new ground in terms of the integrated programme’s scope, breadth and ability to bring together leading underwriters under a single programme with two distinct classes of business.”

You can read more about the new healthcare and life science facility in Insurance Journal, Business Insurance and Insurance Insider.

In addition to Healthcare, RKH Specialty’s expertise in every aspect of the design, placement and servicing of successful programmes has led to work across many specialist industry areas, including:

• Agriculture
• Financial Institutions
• Habitational
• Public entity
• Retail
• Hospitality
• Real Estate

For more information about RKH Specialty Healthcare, contact Al Carter.

For information about Facilities, contact Nigel Bridgwater.

In 2011, the American government signed the Food Safety Modernisation Act into law. It was the biggest change to US food regulation since the 1930s, giving the FDA (Food and Drug Administration) greater power to recall food and the resources to instigate a more extensive inspection regime.

The FDA is clearly taking its new role seriously, resulting in a notable increase in both the frequency and scale of food recall events in the last year, which is why Mark Colgate, Executive Director of RKH Specialty’s Casualty division, chose to write about how this change is affecting the insurance market in a special report on corporate risk management in Insurance Day, published on Monday, 28^th April to coincide with RIMS in Colorado.

The legislation has generated an increase in interest in food contamination insurance, Mark writes, a greater focus on risk management as well as a change in the way risk managers approach their dealings with the regulator.  The full article can be read here.