Category Archives: Emerging Risks

Data Loss

Today another company, this time in the retail sector, revealed details of a breach in data security that saw hackers access information from at least 45.7 million customer credit and debit cards. A further 455,000 customers who returned merchandise without receipts also had their personal data stolen, according to news reports. Indeed, a recent risk survey conducted by the Economist Intelligence Unit (EIU) and sponsored by ACE European Group (ACE) found that one in three global businesses see loss of data as a significant threat and the key issue to address in operational risk management planning. Some 43 percent of survey respondents identified reputational damage as the main threat arising from data loss. Yet only 19 percent of respondents saw loss of revenue as a concern. These latest developments are a reminder of the potentially enormous liability facing corporations, if and when a breach in data security occurs, and the apparent  growth opportunity for insurers.

Avian Flu Watch

New outbreaks of the H5N1 flu virus are reported to have infected and killed birds and poultry in Russia, Hong Kong, Hungary and Japan this week. Meanwhile, Australia, Singapore, and Japan announced they are stepping up their preparedness efforts. I.I.I.’s latest update from our resident bird flu expert and economist Dr. Steven Weisbart notes that at least 164 people have died and 270 have been confirmed infected since December 2003, the start of the current outbreak. In 2006 alone there were one-third more infections and nearly twice as many deaths as in 2005. Human infection is still believed to be mainly from birds to humans, basically from very close contact with infected chickens and similar birds in home environments.  There are still no cases of birds or people in the U.S. with this flu virus.