Hiscox news - issue 12

Hiscox launches new product recall cover for aircraft part makers

In response to a growing need to meet the cost of expensive recalls in aircraft manufacturing, Hiscox has launched Aviation Component Warranty – the market’s first industry-specific product recall cover for aircraft components.

Aimed primarily at suppliers worldwide with sales of less than $1 billion, Aviation Component Warranty will respond to the contractual obligations to customers arising from the supply of a defective part or component that is not up to specification. The cover provides balance sheet protection to manufacturers, paying for the recall and placement costs they incur, including notifying clients, disposal of the defective part, replacement expenses and additional employee costs.

“There are a lot of recalls in the aircraft manufacturing sector, particularly related to quality issues where costs are swallowed by either the aircraft manufacturer or the component supplier,” says Andrew Kyle, Product Recall Underwriter for Hiscox London Market. “This product fills a real gap in insurance cover available for aircraft-industry component manufacturers, responding not just to faulty parts but also if they are rejected by their customer for simply being out of specification.”

For further details, email andrew.kyle@hiscox.com or call +44 (0)20 7448 6494

Hiscox launches Security Incident Response coverage in the US

Hiscox has launched a new security response coverage in the US designed to combat a growing range of terror, criminal and political violence threats. Security Incident Response (SIR) – rolled out in Europe earlier this year – helps businesses protect their people, operations, brand and reputation by complementing existing business security resources or, where necessary, acting as a standalone security function.

SIR equips organisations of any size – from small and medium sized businesses up to larger multi-nationals – with affordable and easily accessible incident response, crisis management, strategic advice and recovery services for a wide range of threats including criminal, political, terrorism, and political violence risks, as well as information risks such as cyber threats, and kidnap, detention and extortion risks.

The product – filed in all US states and the District of Columbia – provides exclusive access to leading global risk consultancy Control Risks and includes cover for Control Risks’ costs to help a business manage a crisis

Kevin Henry, Deputy Chief Underwriting Officer for Hiscox Special Risks, says: “Whether it’s a terrorist firearms attack, a criminal threatening extortion, or a manufacturer’s plan to shut down plant operations leading to violent worker activism, our Security Incident Response coverage means that businesses of all sizes – whether they have an existing security capability or have no such resources to draw on – can access world-class incident response and recovery services with only one phone call. The nature of the policy removes the financial uncertainty associated with engaging security consultants and responding instantly to complex integrity and security-related issues anywhere in the world, offering businesses peace of mind and reassurance that they will meet their duty of care obligations.”

Businesses unprepared for full costs of cyber attacks, Lloyd’s says

Companies could face a much higher bill from a cyber attack than they are prepared for if they do not take account of ‘slow burn’ costs such as reputational damage, litigation and loss of competitive edge, according to new research from Lloyd’s. These longer term costs can dramatically increase the overall bill for a cyber attack, on top of the more immediate legal, forensic investigation and extortion payment, it states.

As well as a growth in ransomware attacks such as the recent WannaCry and Petya incidents, and distributed denial-of-service attacks, the Lloyd’s report, Closing the gap – insuring your business against evolving cyber threats, also points to a significant increase in CEO fraud, where hackers use fake email accounts to impersonate a senior executive to a firm’s employees to con them into moving money into the hackers’ bank account.

The report’s focus on a company’s culture as part of its strategy to combat cyber attacks is right given employees are frequently targeted as the weakest link in cyber defences, says Matt Webb, Group Head of Cyber at Hiscox. “Company culture counts,” Webb argues. “All businesses should treat cyber as an organisational risk, not just an IT or technological one. It is just as much about staff awareness and training, and good processes too.”

“At a board level, someone in the C-suite must be able to raise their hand and say ‘I’m responsible for cyber risk.’ And increasingly we are seeing CEOs do this,” says Webb.

The full report, “Closing the gap – insuring your business against evolving cyber threats”, is available at lloyds.com/closingthegap.

Hiscox helps celebrate the lives of Britain’s immigrants

Hiscox is hosting a public exhibition by an award-winning photographer celebrating the lives of immigrants to the UK.

The photos show children of people who came to this country in search of a better life. The young men and women are pictured with their parents and people who have influenced them, and every photograph tells the story of how and why they came to the UK, as well as the lives they left behind.

They include Hiscox Group CFO Aki Hussain, whose parents arrived from Pakistan in the 1950s. His father fought and was wounded while fighting for the British Army in Burma in World War II.

“Sometimes a smile hides a story of hardship, or the search for equal opportunity and belonging. These parents now watch as their children take advantage of the opportunities denied to them,” says Bill Knight, who took the photos. A former Deputy Chairman of Lloyd’s, Knight is now a celebrated London-based portrait and theatre photographer.

Some of those pictured work in the City, while others are teachers, actors, civil servants or postgraduate students. “The young men and women I have photographed are changing Britain, just as Britain has changed their families. What happens next? The pictures don't say, but this is an optimistic exhibition for a pessimistic time,” says Knight.

“It is a wonderful celebration of the positive fruits of Britain’s openness, tolerance and mutual respect,” adds Bronek Masojada, Hiscox Group CEO. Born in South Africa to Polish parents, Masojada is a proud immigrant. “The winds of war swept my father to South Africa where he created a new beginning. My wife and I have done the same in coming to Britain. Anyone who comes to this country to work hard, better themselves and this country, are people worth celebrating,” he says.

The exhibition is at the Hiscox Art Café in the company’s London headquarters at 1 Great St Helen’s until September 29 2017. It is open to the public between 8am and 7pm, Monday to Friday.