We tend to think that critical systems responsible for managing oil rigs, power stations, steel production plants, are somewhat immune to what happens in the “wild west” of cyberspace. News of cyberattacks tend to focus on data theft, financial heists, or bringing down websites; they are contained within IT systems. If cyberattacks are contained in the cyber world, then the logic goes that only cyber insurers should be concerned by the risk.
There is also a sense of security in the belief that critical control systems for “real world” assets and processes would either be too mechanical, too old, not connected to the same network as the wider Internet, or would run on their own networks. The reality is that industrial control systems (ICS) that manage energy, water, transport, communications, and manufacturing plants, are increasingly managed and controlled remotely or need to be networked. Wherever the systems need to use a network, the systems are exposed to vulnerabilities on that network. For non-cyber insurers, this risk needs to be assessed and managed.
In what was an otherwise relatively quiet Australian cyclone season, Cyclone Debbie proved to be the exception, being the only severe tropical cyclone to make landfall. Although devastating for those affected, Debbie provided an opportunity to help better understand cyclones in the region and the damage they cause.
The Cyclone Testing Station at James Cook University (with collaborators from the Wind Research Laboratory at the University of Queensland) were able to deploy portable weather stations in advance of the event as part of its SWIRLnet (Surface Weather Relay and Logging Network) project, of which RMS is a benefactor.
It would be hard to find a simpler example of a catastrophe. Details are emerging that the overall plan for managing fire risk in the 24-storey Grenfell Tower in North Kensington, London, centered on the assumption that as each of the 120 apartments in the tower block had a fire door, any fire would be contained long enough for the fire service to arrive. Meanwhile all those living in the unaffected apartments could conduct an orderly evacuation from the building. As a concrete building, with concrete floors and walls, it would be hard for a fire to spread. Continue reading
If we’ve learned anything about forecasts and predictions (pick any recent event, sporting, political etc.) they give an indication of the situation, but cannot predict the absolute outcome, and surprises can most definitely happen. We are into the first weeks of the North Atlantic hurricane season, which officially runs for six months from June 1 to November 30, and a variety of forecasting groups and agencies have issued preseason forecasts. Continue reading
Technology, data, and science continues to evolve when assessing and understanding earthquake risk; the new continually replaces the old. In AD 132, Chinese polymath Zhang Heng demonstrated his seismoscope, the first scientific instrument used to Continue reading
What a difference a week makes. A week before the tragic events in Manchester, RMS was in New York, and the previous week in London as we hosted over 400 risk professionals from across the (re)insurance industry at two half day terrorism seminars. The seminars featured several of the world’s leading experts on counterterrorism, modeling, and terrorism risk management and highlighted the fluid threat environment, its insurance implications, and the impact of technology on terrorism risk. Continue reading
The 2016-17 Australian region cyclone season will be remembered primarily as an exceptionally slow starter that eventually went on to produce a slightly below-average season in terms of activity.
With the official season running from November 1 to April 30 each year, an average of ten cyclones typically develop over Australian waters with around six making landfall, and on average, the first cyclone landfall is by December 25. For the 2016-17 season, we saw nine tropical cyclones, of which three further intensified into severe tropical cyclones and three of which made landfall, running contrary to an average to above-average forecast from the Bureau of Meteorology. Continue reading
Together with the California Earthquake Authority (CEA), RMS co-hosted a webinar on May 17 for the CEA’s global panel of catastrophe reinsurers to explore how new earthquake science and RMS modeling impacts the CEA and its markets. The CEA is one of the largest earthquake insurance programs in the world with nearly one million policyholders throughout California. In the webinar, we analyzed and shared insights about the risk to the CEA book using the new Version 17 RMS North America Earthquake Models which was just released on April 28.
RMS is delighted in playing an integral role at the United Nations’ Global Platform for Disaster Risk Reduction in Cancun next week. This is the first time that government stakeholders from all 193 member countries have come together on this subject since the Sendai Framework for Disaster Risk Reduction was adopted in March 2015. Cancun looks forward to welcoming some 5,000 participants.
The event is arguably the most significant cyber-catastrophe to date and clearly demonstrates the systemic nature of cyber risk. A single vulnerability was utilized to spread malware to over 300,000 machines in over 150 countries causing havoc to industries as diverse as hospitals and car manufacturers.