KPMG report highlights disruptive technologies for business
The pace of technological advancement is rapid and for businesses the changes can create opportunity but also increase risk. KPMG has produced a report on the disruptive technologies that it says will shape business over the coming years. For insurance professionals it is time to assess how these emerging technologies will affect our business and those of our clients. One of the biggest things that is beginning to happen now is the so called ‘internet of things’ where more devices than ever are connected to each other over the internet. The obvious risk is cyber attack, which has been increasing fast and will find new routes to inflict damage through wider networks of devices. 3D printers will also allow new solutions to old problems but as with any relatively new technology there is a risk to business, including the greater exposure to intellectual property theft with replicating products far easier than before, if you have the right computer files. A third development that KPMG’s report highlights is digital currency. As well as the emerging risk this creates, there is also a consideration for insurers in when, or if, to accept digital currencies such as Bitcoin.
Santander introduces environmental risk data for mortgage valuations
European bank Santander has introduced environmental risk assessment as part of its mortgage valuation process. The bank has partnered with a specialist risk data provider and will run automated and physical evaluations in its decision-making process. Any issues that are flagged up by the automated assessment, including the potential for flooding or subsidence, will be referred to a surveyor for physical assessment.
Lloyd’s sees 21 per cent rise in profits
Lloyd’s group has reported half yearly profits of US$2.72 billion; a 21 per cent increase on last year. The iconic corporation which received a credit rating upgrade from Fitch to AA- back in June, says that although profits are up, it’s a challenging time for the industry. Additional regulatory requirements and increased competition are putting pressure on insurers globally.