Cyber risk high on companies’ agenda
Cyber risk, terrorism and D&O risks are high on the agenda for companies in Asia, Chin Feng, Hong Kong & Greater China CEO for Allianz, told EAIC Today.
“Companies are concerned about the data they hold for their clients and employees; they are concerned about hacking and the disruption they could face as a result of that. Cyber crime, business interruption and reputational risk are all concerns,” he said.
Terrorism is another important emerging risk, added Feng, with concerns ranging from kidnap and ransom to crisis management in general.
Also emerging as a key issue in Asia is D&O claims, which are due to rise as a result of tougher legislation. There is a focus on the ability to manage or improve internal controls, protect customer data, and to ensure compliance with the correct food and safety regulations, said Feng.
These new risks are emerging against a landscape in which there is a great deal of overseas expansion by mid to large size companies, particularly in China, where companies have been investing and buying companies in different parts of the world.
“Another hot topic is high technology and digitisation in Asia and especially in greater China,” said Feng. “Pollution is another. In China the government wants to invest in a cleaner environment so a lot of private companies are jumping on the bandwagon.
“Then you have corporate social responsibility; for most companies the end game is to improve their reputation in the market. Additionally, because of the growth in the population, the business-to-consumer online business is Asia is growing quite a lot as well.”
In the short term Feng expects the market will see contingent business interruption become a growing issue due to disruptive scenarios from terrorism to food safety and cyber issues having negative effects on companies.
“Even a simple property explosion can cause a negative impact on global supply chains,” he added.
He also expects cyber claims to become more prevalent.
“There is more awareness; there have been a lot of claims in the US but in Asia we are also seeing an increase of cyber-related issues.
“Risk managers are becoming more concerned about how to detect and understand this kind of exposure in their companies. In time I believe they will be buying insurance to cover that gap as well.”
