Download presentation
Presentation is loading. Please wait.
2
Internet Risk Kevin Rooney General Reinsurance Krooney@genre.com
4
Date Issue Copyright ©1999, The Industry Standard
7
Outline New or Increased Risks –Security /operational integrity –Content –Function / technology E&O Traditional coverage Specialty coverage Factors for Actuaries to Consider
8
New LOB or Exposure?
9
Not Just Priceline & Amazon... eCommerce business model risks Technology & Internet-enabling risks Standard commercial risks using internet to varying degree: clicks & bricks Personal Home Pages - Home-owners Another way to segment is by Activity: –Access, Presence, Integration, eCommerce
10
What are the risks? Security /Operational Integrity Content Function / Technology E&O
11
Security Risks Theft & Extortion: Outsider or insider can steal things or copy secrets, use them or threaten to reveal them publicly. Business Income: Outsider or insider, maliciously or not, can interrupt your business. Liability: –Downtime - interruption can lead to failed obligations –Negligent Netizen - pass virus, launchpad
12
Security Perils Information Theft Malicious Code Denial of Service Repudiation Access Violations Programming Errors Social Engineering 1st party3rd party
13
Content Risks Infringement - Trademark, Trade Name, Trade Dress & Copyright Privacy / Publicity Defamation - Libel Slander Content E&O Regulatory
14
Trademark Infringement Domain Names Cybersquatting Metatags Typo-jacking Keying Traditional Infringement: Confusion, incl. Initial Interest Confusion 1995 Trademark Dilution Act: Famous marks protected from dilution & tarnishment 1999 - Anticybersquatting Cons. Prot. Act - protects mark holders against bad faith intent to profit actors
15
Copyright Infringement "Literary," "Musical," "Graphic" & other categories are copyrightable Exclusive rights of the copyright holder - reproduce, prepare derivative works, distribute, perform or display publicly Direct, Contributory, Vicarious DMCA - protects ISP’s
16
Privacy Law unsettled, Plaintiff’s Bar grabbing at straws –DTPA –Anti-Stalking, etc. FTC Emotional Issue, teed up to get ugly
17
Jurisdiction Interstate rules established; modification to online fairly well jelled International - who knows? –Need to study local laws of all countries in world. –E.g. - UK Libel-tourism
18
Outline New or Increased Risks –Security /operational integrity –Content –Function / technology E&O Traditional coverage Specialty coverage Factors for Actuaries to Consider
19
Traditional Coverage CGL - fair amount of (at least arguable) coverage - P&AI, PD loss of use –seemingly arbitrary applied to this space Property - physical damage to covered property from a covered peril -- safe? –AMERICAN GUARANTEE & LIABILITY v. INGRAM MICRO, INC
20
Lose / Lose Proposition Standard coverage mismatched with modern world Consumers face uncertainty - consumers lose Loss costs will rise - insurers lose Cries out for change
21
Outline New or Increased Risks –Security /operational integrity –Content –Function / technology E&O Traditional coverage Specialty coverage Factors for Actuaries to Consider
22
Market Evolution of Platforms: PI & advertising injury (GL), property and business interruption and crime Miscellaneous E&O, media, tech E&O Elimination of media exclusion, Addition of worldwide coverage Dedicated internet policies Multi-line Aimed at riskier and/or larger end of spectrum
23
Outline New or Increased Risks –Security /operational integrity –Content –Function / technology E&O Traditional coverage Specialty coverage Factors for Actuaries to Consider
24
What’s Next? Amazon.Com, eBay, e*trade - specialty? Large swath of “standard” commercial? –Will this mean risk is ubiquitous, therefore swallowed up by standard policies? –Or are exposures too unique for that platform, spawning new standalone products?
25
Observations A lot of interest, negligible demand –Awareness issue? An Exposure and a new LOB Many challenges: –Underwriting: “E&O Like” –Rating - black hole –Jurisdiction - crossing their fingers –Technology - what’s a secure socket? How big of a deal is all of this???
26
Internet Risk Kevin Rooney General Reinsurance Krooney@genre.com
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.