Daily Market Update - August 29, 2014

​Disasters cost insurance industry US$21 billion so far this year… Majority of retail and finance sector at risk of Heartbleed-type cyber attack… And the soaring cost of prescription drugs…

Insurance News

By

Insurance industry covers US$21 billion of disaster losses
New figures from Swiss Re show that the cost to the industry of disasters has fallen to $21 billion in the first half of this year; down from $25 billion for the second half of 2013. The report reveals that the total economic cost of disasters was $44 billion, with the large majority of that coming from natural events; manmade disasters account for $3 billion. The loss of lives in the period was 4,700. Much of the losses were the result of heavy rainfall affecting the US and parts of Europe and the freezing winter in North America. Flooding in Eastern Europe did not affect the industry as much due to a low penetration of insurance cover. Overall losses from disaster are far lower than the peak of 2011 when the industry paid out $116 billion for disasters.

Majority of retail and finance sector at risk from Heartbleed type attack
Poor coding is a weakness in computer software applications that needs to be addressed according to ongoing research. Software analysis firm CAST says that validating data being input to applications needs to be stronger. The data reveals finance and retail industry applications are the most vulnerable to data breaches, with 70 percent of retail and 69 percent of financial services applications shown to have data input validation violations. This is particularly concerning, considering the amount of personal and financial customer data often held in applications across these industries.  These weaknesses were behind the ‘Heartbleed bug’ which exposed over 60 per cent of the Internet’s servers to attack and hit many major names as well as thousands of other businesses worldwide.

New guidelines on cost of prescriptions
America’s Health Insurance Plans has issued new guidance on the shared cost of prescription drugs. The cost of prescription drugs is soaring and the Affordable Health Care has set limits for out-of-pocket expenses and cost-sharing subsidies. Those with chronic conditions may have expenses for drugs that are prohibitive without subsidies and health plans to cover the cost. Although there is much that the industry is doing to ensure that the escalating cost of treatments doesn’t stop patients getting the treatment they need, AHIP says the pharmaceutical industry needs “to price their products at sustainable levels.”
 

Keep up with the latest news and events

Join our mailing list, it’s free!