Cyber-attack could cost clients a fifth of their customers
Your clients in the retail sector could lose 19 per cent of their customers if they were to suffer a cyber-attack.
A report by KPMG found that customers are increasingly concerned about the risk to their identity and finances from cyber incidents and would walk away from their favorite retailer following a data breach, even though the company has taken steps to put things right.
A third of respondents said that, while they would return to the retailer, it would not be for at least 3 months following an attack.
Those who would not return, or delay a return, said that their main concern was that retailers may not take robust enough steps to prevent a repeat of the incident.
“Consumers are clearly demanding that their information be protected and they’re going to let their wallets do the talking. Retailers that don’t make cyber security a strategic imperative are taking a big gamble,” said Mark Larson, KPMG’s Global and U.S. Sector Leader for Retail
Alongside the survey of consumers, KPMG also polled retail sector executives and found that 55 per cent of companies have not invested capital funds in cyber protection in the past 12 months and 42 per cent does not have a leader who is responsible for managing the risk.
Insured losses from Italian quakes limited by low coverage
Insurers in Italy will suffer lower losses than might have been expected following the devastating series of earthquakes and tremors which killed almost 300 and injured 400.
A.M. Best estimates that the country’s low overall insurance coverage will limit insured losses to 10 per cent of economic losses.
“For most insurers, the losses are unlikely to be high enough to trigger their catastrophe excess of loss protection, although proportional covers will enable them to transfer a share of the losses to the reinsurance industry,’’ said A.M. Best’s Alvise Argenton, financial analyst.
Personal property and auto lines are expected to bear the largest share of the insured losses with commercial lines accounting for a smaller share.
Hong Kong insurers sales to mainland China surge
Insurance companies in Hong Kong have almost doubled their sales to customers in mainland China despite the authorities taking steps to limit the market.
Purchases in the second quarter climbed to U$2.2 billion according to new data from the Office of the Commissioner of Insurance in Hong Kong, beating the previous record from the first quarter.
The figures show that 37 per cent of Hong Kong’s insurance sales were to mainland Chinese customers.
Authorities are trying to curb insurance and other transactions in a bid to stem the flow of capital from the mainland and reduce corruption.
