Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — Investor Day (August 2017)
14 slides from Sampo Oyj's investor day presentation, Aug 18, 2017
Slide 1: Cyber Insurance in If - with a touch of Casualty
CYBER INSURANCE IN IF - with a touch of Casualty - August 18th 2017 Kristine Birk Wagner
Slide 2: Cyber Exposure in If: Topics
CYBER EXPOSURE IN IF TOPICS Brief overview of If’s Liability portfolio Cyber – today’s definition Cyber coverages Parameters driving demand Portfolio control Summary
Slide 3: Brief Overview of If's Liability Portfolio
BRIEF OVERVIEW OF IF’S LIABILITY PORTFOLIO High complex portfolio with stable and profitable results 100% Casualty Industrial net development 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 4: 3rd Party Risk – The Liability Triangle
3rd PARTY RISK – THE LIABILITY TRIANGLE Insured client Insurance Claimant company Precondition for coverage under any Liability insurance: The insured client has a legal liability towards the claimant.
Slide 5: Cyber – Today's Definition
CYBER – TODAY’S DEFINITION DEFINITION EXAMPLES A loss caused directly or indirectly by: A loss would typically be: • Accidental damage or destruction of • ICT system damage an ICT system (Information and Communication Technology) • Loss of data • Administrative or operational • Physical damage mista
Slide 6: Cyber Coverages – If Has Three Products Today
CYBER COVERAGES – IF HAS AS PER TODAY THREE PRODUCTS The Cyber Stand-Alone, The Property Endorsement & The Commercial Crime Endorsement 1st PARTY ELEMENTS 3rd PARTY ELEMENTS Data / system • (elements recovery in all three products) (only The Cyber Stand-Alone Product) • Legal support / defense • Dat
Slide 7: Cyber Exposures Hidden in Insurance Companies' Existing Conditions
CYBER EXPOSURES hidden IN INSURANCE COMPANIES’ EXISTING CONDITIONS Some with an accumulation potential Cyber Product: 1st PARTY ELEMENTS & 3rd PARTY ELEMENTS Extension covering Loss of data if that is None None None loss of data deemed to be (regardless of the damage/personal peril) and BI caused in
Slide 8: 1st Party Exposures in Insurance Companies' Existing Portfolio
1st PARTY EXPOSURES IN INSURANCE COMPANIES’ EXISTING PORTFOLIO Physical damage to any asset owned by the insured, including damage to ICT Systems and loss of electronic data (owned by the insured) typically caused by a FLEXA incident. The German Steel mill. Hackers had managed to access the control
Slide 9: 3rd Party Exposures in Insurance Companies' Existing Portfolio
3rd PARTY EXPOSURES IN INSURANCE COMPANIES’ EXISTING PORTFOLIO Any property damage or personal injury, including loss of data (damage to digital assets) not owned by the insured. Damages to 3rd parties can lead to a liability claim, covered under the GLPL policy . Court rulings have found loss of el
Slide 10: 3rd Party Exposures in Insurance Companies' Existing Portfolio
3rd PARTY EXPOSURES IN INSURANCE COMPANIES’ EXISTING PORTFOLIO Cyber is not covered directly, but can increase the underlying risk of claims that can lead to a covered loss under the D&O policy. D&O insurance always has a potential exposure for breach of duty, negligent acts etc. Cyber is not covere
Slide 11: Parameters Driving Demand for Cyber Insurance
PARAMETERS DRIVING DEMAND FOR CYBER INSURANCE And thus drive the potential accumulation exposure Both domestic, foreign and international legislation as well as jurisdiction (GDPR as per 2018) LEGISLATION Increasing awareness of management (D&O) and REPUTATION SIZE Big companies are attractive due t
Slide 12: Portfolio Control
PORTFOLIO CONTROL In addition to reinsurance protection CYBER WORDINGS AND APPETITE CONTROL OF EXPOSURE • Property endorsement ready • Registration secured • Continuous product development • Dedicated cyber accumulation team • Development of Risk Management competences UNDERWRITING CONTROL AND GUIDE
Slide 13: Summary
SUMMARY The digital development is changing the insurance environment as our customer ’s need for coverage of non-physical perils is gradually increasing. To address the demand If has developed currently three cyber products: • One cyber product with a broad coverage including 1 st party loss such a
Slide 14: Relax, we'll help you.
Relax, welll help you.