Study 9 – Emerging Issues and Trends in Insurance

Cyber Crime

Criminal activities committed using the internet and computer networks.

Denial-of-service (DoS) attacks

Attacks that disable an organization's network and ecommerce services.

Social Engineering

Techniques used to manipulate individuals into divulging confidential information.

Virus

A computer program that copies itself and corrupts files without user consent.

Trojan Horse

A legitimate program with unauthorized code that allows intruders to gain control.

Worm

A self-replicating computer program that spreads through a network without user intervention.

Intellectual Property Theft

The illegal stealing of proprietary information such as trademarks or copyrights.

Intrusion Offences

Unauthorized access to computer systems by exploiting vulnerabilities.

Distributed denial-of-service (DDoS) attacks

Attacks that flood a target's resources using multiple compromised systems.

Extortion

Using ransom to threaten exposure or damage unless payment is made.

Web Defacement

Malicious alteration of a webpage by intruders.

Remote Hacking

Exploiting software vulnerabilities remotely to gain control over devices.

Deepfake Attacks

Synthetic media creations used for impersonation or misinformation.

Multi-vector Threats

Cyber attacks that use various methods to compromise security.

Bot Scams

Using bot malware to control numerous computers for malicious purposes.

Cyber Crime Insurance

Insurance that covers losses from cyber incidents.

Pandemic

A disease outbreak occurring over a wide geographic area affecting a high proportion of the population.

Operational Risk

Risk of loss resulting from inadequate or failed internal processes.

Insurance Coverage Risk

Potential for claims incurred during a pandemic exceeding policy limits.

Climate Change

Long-term changes in temperature and weather patterns affecting environmental conditions.

Generative AI

AI that creates new content, such as text, images, or code.

Cannabis Risk

Insurance considerations associated with legal cannabis production and sale.

Forever Chemicals

Per- and polyfluoroalkyl substances (PFAS) known for longevity in the environment.

Smart Contracts

Self-executing contracts with terms written into code on a blockchain.

Risk Assessment

The process of evaluating risks to determine their potential impact.

Reinsurance

Insurance purchased by insurance companies to manage risk.

Micro Insurance

Insurance with low premiums designed for low-income individuals.

Parametric Insurance

Insurance that pays out based on specific parameters being met.

Real-Time Insurance

Insurance that adapts coverage and premiums to current conditions.

Insurance Frauds

Claims that are exaggerated, falsified, or otherwise dishonest.

Insurance Regulation

Laws and guidelines governing how insurance companies operate.

Epidemic

An outbreak of a disease occurring in a community or region.

Endemic

The constant presence and/or usual prevalence of a disease in a population.

Liability Insurance

Insurance that protects against claims resulting from injuries and damage to people or property.

Commercial General Liability (CGL) Insurance

Insurance that protects businesses from legal claims due to accidents.

Business Interruption Insurance

Insurance that covers loss of income during periods when a business cannot operate.

Evidence of Coverage

Documentation from an insurer confirming policy details and coverage limits.

Negligence

Failure to take proper care in doing something, leading to damage or injury.

Policy Exclusion

Provisions in an insurance policy that exclude certain risks from coverage.

Claims Processing

The handling of claims submitted by insured parties.

Telematics

Technology that uses telecommunications and monitoring to collect data.

Cyber Liability

Legal responsibility related to data breaches and cyber incidents.

Insurtech

Technological innovations in the insurance sector.

Operational Resilience

An organization's ability to withstand and recover from disruptions.

Insurance Underwriting

The process of evaluating risk and determining policy terms.

Best Practices

Methods or techniques that are accepted as superior to others.

Disaster Recovery Plan

A documented process to recover and protect a business IT infrastructure.

Incident Response Plan

A plan for responding to and managing the aftermath of a security breach.

Data Breach

An incident where unauthorized access is obtained to sensitive data.

Insurance Fraud Detection

Methods used to identify fraudulent claims.

Digital Transformation

The incorporation of digital technology into all aspects of a business.

Claim Settlement

The resolution of a claim, usually involving a payout.

Insured Property

Property or assets covered by an insurance policy.

Reinsurance Broker

An intermediary who helps insurance companies obtain reinsurance.

Insurance Premium

The amount paid for an insurance policy.

Risk Pooling

Sharing risk by putting together multiple debts or liabilities.

Emerging Risks

New and evolving risks that insurers may face.

Loss Adjustment Expense (LAE)

Expenses incurred by insurers while investigating and settling claims.

Policyholder

An individual or entity that owns an insurance policy.

Coverage Limits

The maximum amount an insurer will pay for a covered loss.

Business Continuity Planning

Preparation for potential disruptions to business operations.

Privacy Laws

Regulations that govern the collection, storage, and sharing of personal information.

AI in Insurance

Using artificial intelligence to enhance various insurance processes.

Underwriting Guidelines

Criteria set by insurers to assess risk and determine policy terms.

Insurance Market Trends

Current developments and changes within the insurance industry.

Crisis Management

Strategies and processes used to manage emergencies.

Insurance Portfolio

Collection of insurance policies held by an insurer.

Insurance Act

Legislation that governs the insurance industry.

Loss Reserve

Funds set aside to cover future claims.

Market Liquidity

The ease with which assets can be bought or sold in the market.

Asset Protection

Strategies to safeguard an individual's or entity's assets.