MUNICH RE BACKS CHAINPROOF | MUNICH RE (US) SOLUTIONS TO CYBER INSURANCE | INSURERS SHOULD KEEP UP | THE START OF THE M&A ERA FOR ISRAELI HI-TECHS
Dikla Wagner
On Israel's top 12 Fintech influencers ??Keynote speaker / MunichRe ????, Head of Tech Scouting ????
MUNICH RE BACKS CHAINPROOF SMART CONTRACT INSURANCE PROVIDER
Over $70 billion in total value is locked in the quickly expanding DeFi industry, a 6000 percent growth from two years ago. However, this expansion carries substantial risk given the recent occurrence of several smart contract hacks and attacks.
Chainproof has announced the introduction of its licensed, institutional-grade insurance program for open-source, non-custodial smart contracts.
Blockchain Chainproof intends to unite the worlds of traditional insurance and decentralized finance with support from Munich Re in the form of reinsurance (DeFi).
The gap Chainproof aims to solve is that traditional insurers typically lack the historical data and technological know-how necessary to properly underwrite insurance connected to smart contracts.
MUNICH RE (US) SOLUTIONS TO FLUID CYBER INSURANCE MARKET
Improved Data Quality
Munich Re US Senior Vice President, Cyber Treaty Reinsurance Underwriter Paul Needle Underwriters are also urging insureds to furnish better data.
When aggregated application material is matched to claims data, it will serve as a leading signal for carriers when underwriting action is required.
Underwriters are asking for information on all prior cyber occurrences, including the source of loss and any corrective actions taken by the insured.
Rising Interest Rates
Rate increases are still pretty high quarter over quarter and year over year, according to Amy Pines, Senior Cyber Underwriter at Munich Re US.
Minimum rate per million and increasing limit factors are resulting in greater rate hikes for larger customers, which are almost certainly also purchasing excess coverage.
"In addition, cedants continue to see considerable premium hikes, mostly due to ransomware claims and uncertainty about future systemic disasters." In light of present market conditions, policyholders and their brokers are beginning the renewal process significantly sooner than in past years.
This, in turn, contributes to data granularity since underwriters have more time to acquire the necessary information.
Risk-based Approach
A risk assessment based on controls will assist in determining the most effective ways of protecting against an assault.
While no single control can accomplish everything, using a risk-based strategy can help guide the underwriter's thinking and assist in underwriting consistency.
Underwriters will build critical thinking skills as they emphasize control criticality and interdependence.
One of the most difficult difficulties for cyber is that cyber risk is always evolving.
Regulatory Changes
Since the earliest attempts at regulation in the 1970s and the creation of the first cyber liability policies in the 1990s, data and privacy legislation has developed.
"With all of the new rules and updates, there are so many different concerns," said Amy Pines, Senior Cyber Underwriter at Munich Re US. "There is undeniably a heightened risk of cyber claim activity for any commercial insured owing to noncompliance with regulatory legislation, both in the United States and abroad."
RAPID CHANGING TECHS - INSURERS SHOULD KEEP UP
The ongoing and long-term consequences of the pandemic, lifestyle changes, technology breakthroughs, and the requirements produced by climate change necessitate a real-time and consistent view of risks and exposures across an insurance provider's entire portfolio. In a volatile global economy, the insurance business will increasingly rely on data to satisfy the rising expectations and needs of more connected consumers.
1. Using Data To Better Control The Risk Of Extreme Weather Events
Critical geospatial data, such as near-real-time flood alerts and the tools that anticipate and display at-risk regions, are increasingly being utilized in conjunction with insurance carriers' own customer data to forewarn individual business property, homes, and vehicle owners as disasters occur.
2. Changing Driving Habits And Behavior With Increased Safety Features
Along with driving habits and behavior, we're seeing a shift in how we interpret a vehicle's safety features and how they're employed via telematics-based Advanced Driver Assistance Systems data - or dynamic ADAS at the VIN level.
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Consumers benefit from exchanges because they can utilize their driving behavior and vehicle data while shopping for insurance to assist them to take advantage of safe driving.
3. Dealing With Covid-19-based Risk Today And In The Future
It's no secret that the pandemic has changed the way many of us work, and as the virtual workforce expands throughout the world, new risks in residential and commercial property insurance have emerged.
4. Using The Accurate Data At The Correct Time And At The Correct Spot
Insurance companies are entering a new age of risk assessment.
Simultaneously, the industry is embracing prospects for data sharing via market-wide contributory databases, as well as innovative applications of contributory data via predictive qualities or predictive models.
5. The 'Holy Grail' Of A Unified Customer View
What is the key to utilizing reliable data? We are witnessing the emergence of a single view customer as the industry's data holy grail.
It then comes down to leveraging insurance-specific data to enhance consumer data - data that has been filtered via the underwriter's, pricing manager's, and claims professional's eyes.
Credits to the source Digital Insurance and Insurtech Insights
IS IT THE BEGINNING OF THE M&A ERA FOR ISRAELI HI-TECHS?
Hopes are up for M&A in the Israeli Hi-tech scenes even with the tough markets and this goes with the saying "when the going gets tough - the tough get going".
Until now the values have been very high and companies have refrained from making deals. With the decline in value, companies have an interest in not letting their investors lose – not doing a ’round’ (raising at a lower value than previous raising, NIS), and in public companies there can also be pressure from funds and activist investors.
We will also see this in companies that seemingly have no cash problem because they have raised a lot of money, but whose value has plummeted because previously they thought they would reach a certain growth, and in a market that has changed a lot it will be harder to get
Will we see more stock transactions compared to cash transactions?
Would we see merging into one of the SPAC companies they have recruited or not?
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Disclaimer: Personal thoughts and views are my own and do not reflect the interest of any companies and institutions.
Best, Dikla ??