World Financial Symposium

Transcription

1 World Financial Symposium September 2017 Convention Center Dublin (CCD) Ireland World Financial Symposium 2014 World Financial Symposium 2017

2 Risk Management World Financial Symposium 2014 World Financial Symposium 2017

3 The Cyber Plague Protection and Cure Holly Medforth Insurance Broker, JLT Group World Financial Symposium 2014 World Financial Symposium 2017

4 THE CYBER PLAGUE Protection and Cure IATA WFS 28 September 2017 Holly Medforth, JLT Specialty Limited 1

5 KEY TRENDS IN CYBER FOR AIRLINES 100% Increase in data breaches from between & ,000 Average number of records compromised in a breach 75% Aviation data breaches due to external threat actors 58% Aviation data breaches due to hacking 14% Aviation data breaches due to lost or stolen laptops 1,000 85% Number of cyber attacks global aviation systems are subjected to a month according to the European Safety Agency Global Airline CEOs view cyber security as a significant risk according to PWC 2016 report

6 WHERE WHO WHAT 3

7 13% of cyber claims originate from vendors WHERE WHO WHAT 30% of cyber claims involve insiders 4

8 WHERE WHO WHAT 5

9 WHERE WHO WHAT 6

10 RISK TRANSFER FOR CYBER LOSS 3 RD PARTY INSURANCE ELEMENTS Security/Privacy Claim 3 rd Party (Defense costs Included) Regulatory Regulatory Action Expenses Regulatory Fines and Penalties Media 7

11 Crisis Expense Extra Expense Lost Income Defence Penalties Liability 8

12 Extra Expense + Lost Income Internal Technology Vendor Any Other Vendor Cyber Attack Technology Failure 9

13 Crisis Expense Extra Expense Lost Income Defence Penalties Liability 10

14 The 5B question is Cyber a Peril or Specialty Coverage Line? JLT Specialty Presentation to IATA RIM - May

15 JLT DART JLT DART Data and Reliance on Technology Protection for Airlines Agreed Flight Value business interruption loss adjustment Restricted infrastructure exclusion Air Traffic Control outages are not excluded Goodwill coupons following data breaches Code share partners are automatically covered under the policy 12

16 JLT DART AGREED FLIGHT VALUE LOSS CALCULATION Revenue Departure Figures Passenger Compensation (Using EU261 Statutory Amts) Duty of Care Costs Please fill in Yellow Boxes Insured Turnover 5,000,000,000 Passenger Numbers 51,000,000 Revenue per passenger 98 Average Load Factor per Flight 150 Average Load Factor per Flight x Revenue per passenger 14,706-25% For rebooked passengers - 3,676 = Lost Revenue Per Flight 11,029 Number of Annual Departures 513,726 Estimated Daily Departures 1,407 Estimated Hourly Departures 59 Average flight distance MEDIUM: 1500km-3000km SHORT: km 0 MEDIUM: 1500km-3000km 400 LONG: 3500km+ 0 Average load factor per flight 150 x compensation for average distance flown 400 = Compensation per flight 60,000 Average Daily Duty of Care Costs( ) 90 x Average Load Factor 150 = Duty of Care Cost Per Flight 13,500 Subtotal 84,529 Saved Costs Agreed Flight Value - Est. Average Fuel costs per flight - 2,168 - Est. Average Handling/Airport Fees per flight - 2,466 Total Flight Value 79,895 Discount Applied (75% Insured - 25% Self Insured) 59,922 Cancellation Excess 704 Cancelled Flights 13

17 QUESTIONS? 14

18 APPENDIX AVIATION CLAIMS EXAMPLES Japan Airlines Data breach British Airways IT outage Delta IT outage Southwest Airlines IT outage Vietnam Airlines Data breach LOT Cyber attack 15

19 Betterment Infrastructure Reputation Bodily Injury / Physical Damage 16