GDPR Does Insurance have a role to play Marco DOvidio 14 March 2018 October 2017 October 2017 Insurers generally k een to write business or compete to retain More capacity for solicitor firms to draw ID: 799690
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Slide1
Professional Indemnity - 2018
GDPR – Does Insurance have a role to play?
Marco D’Ovidio
14 March 2018
Slide2October - 2017
October 2017 – Insurers
generally
k
een
to write
business
or compete to
retain
More
capacity for solicitor firms to draw
from plus no unrated markets
Claims
activity has slowed in recent
years
Most
of the legal profession still retain the traditional September renewal date
Premium
pot is considered to
still be down
overall compared to the last years of the Solicitors Indemnity Fund (SIF).
Slide3April - 2018
April 2018 – set to continue as market is considered “soft” at
present.
Typically
triggers to rate increases - catastrophic losses “storms, adverse weather, fires” has not hit Reinsurers as hard as feared, however this may
change.
Onerous
ground rent clauses – potential for future claims relating to poor
advice from firms over this.
Dreamvar
v
Mishcon
De
Reya
If
upheld then insurers could react in terms of rate charged for conveyancing or their appetite to write risks with significant residential conveyancing
attached.
11
working days left to obtain quotations for
PII
Generic
p
roposal forms
Quotes
typically turned around in a couple
days
Various
policy periods – 18 months and commitment to renew (two year
policies)
Aon
exclusives for 1 – 15 partner firms.
Slide4Top Ten Loss Types
Generally speaking they are:
Residential Conveyancing
Trust Wills & Probate
Personal Injury (Claimant)
Litigious (other)
Commercial Conveyancing
Matrimonial
Non Litigious – Other
Commercial
Employment
Other
Slide5Up & Coming Changes
2020 – SIF will cease providing cover upon the expiry of the six year run off
period
Regulator
switch from October 2017
To early to say how many firms will take this route
Risk to firms and clients with less cover
than
current MTC
PII.
Slide6Additional cover
SRA investigations / SDT proceedings
Not
all
PII policies
included this and may cap limits
Leigh
Day - £7.8 million in legal
costs.
Directors
&
Officers cover
is a more suitable policy to cover
this
Would
also include COLP, COFA, MRLO as
well
Does
not impact directly on the PII claims
history
Premiums
for D&O cover considerably lower than PII
Slide7GDPR – Does Insurance have a role to play?
GDPR due to go live from May 2018
Risks of cyber breaches (cyber attacks) are not just limited to large organisations (email interceptions with law firms in the main were under 15 partners from our experience).
In 2016 66% of small firms were the victim of cyber crime (Source Federation of Small Businesses: Cyber Resilience Report 2016.
Under GDPR every business is subject to fines and penalties for failing to secure digital data, up to 4% of annual global turnover or €20m
whichever is greater.
What would you do if your client data becomes exposed?
Slide8GDPR – Does Insurance have a role to play?
Firms will need to notify the Information Commissioners Office within 72 hours plus the clients affected.
Are you ready and prepared to do that?
Notifying the ICO and clients may seem straightforward but can be a complex
and
longwinded process.
Would you have the time and knowledge to do this?
What happens when a client posts on social media that you have lost their data?
Do you have a PR firm on retainer to manage this?
Claims from clients impacted by the breach
Would you want your PII insurers to pick up the costs of this? What about the excess you would have to pay and the knock on effect of premiums going forward?
Slide9Cyber Insurance
The AA is not longer the “fourth emergency service” Think of Cyber cover as providing
that.
Fines
these are included as long as they are legally insurable.
Slide10To Do List
12 Step Guide – have you reviewed this and benchmarked your firm against this?
Are all your staff trained and prepared for GDPR?
Will you provide ongoing training?
Have you questioned your Case Management provider on the robustness of their system?
Do you have cyber cover and is it integrated as part of your Business Continuity Plan?
Purchase Cyber cover! It’s not as expensive as you think!
How often does your IT provider perform a PEN test?
How you prepare both pre and post a cyber attack or data breach will be taken in to consideration by the ICO.
Slide11Questions…