Cyber Risk and the Role of Insurance

2 CPD Points

Cyber Protection Gap Widens for SMEs

Small-to-medium-sized businesses (SMEs) risk being left behind in the fight against costly cyberattacks unless they receive more help to bolster their defences. In Cyber Protection Gap Widens for SMEs, Win-Li Toh, Dr Michael Neary and Sarah Wood take a temperature check on cyber risk.

2 CPD Points

Fairness in Insurance - A Challenge to Boards of Insurance Companies

Authored by former APRA deputy chair, insurance company chairman and actuary Ian Laughlin, Fairness in Insurance argues Boards sit in a powerful position to hold management to account on customer fairness at a time of record high complaints about insurance, parliamentary inquiries into the sector, adverse publicity about rising premiums and affordability pressures.

4 CPD Points

LIPC Risk Margin Survey 2024

1 CPD Point

Risk Margin Survey Results

2 CPD Points

Risk Margins Survey Results

The LIPC are pleased to present the results of the 2024 Risk Margin Survey including calibration of Target Surplus and AASB17 risk adjustments. This session is to assist Appointed Actuaries in their professional duties to make recommendations to the Board to set risk margins under LPS 115, calibrate target capital, and calibrate AASB 17 risk adjustments.

1 CPD Point

Risk Margin Survey Results

2 CPD Points

CPS230 Implementation

Join our session on strengthening operational risk and resilience practices under APRA's CPS 230. Learn strategies for compliance, risk event preparedness, critical operations management, service provider risk, business continuity, and incident management to ensure organisational resilience and regulatory compliance.

1 CPD Point

CPS230 Implementation

0 CPD Points

9 May 2024: Actuaries Climate Index points to disease risk, increased fuel load

The Australian Actuaries Climate Index results for the summer of 2023\24 show that both low and high temperatures were warmer than usual. In addition, high levels of extreme rainfall and wind were observed in the north east.

2 CPD Points

The mental illness pandemic and its impact on lifestyle: a deep dive into the effect on diabetics

A logistic regression model was used to estimate how much more likely a diabetic with a mental health condition is to have an admission than a diabetic without a mental health condition after adjusting for a robust set of risk factors. These results indicate that diabetics with a mental health condition were 48% more likely to be admitted and 45% more likely to be admitted for a high costing admission than a diabetic without a mental health condition. In addition, these diabetic members were 14% more likely to be admitted for a diabetes-related admission and 7% less likely to be adherent to their diabetic medication. This illustrates the impact of mental health conditions on total costs, in-hospital admissions and on the management and control of diabetes. Causal inference refers to the process of drawing a conclusion that a specific treatment was the cause of the observed outcome. A causal forest model was used to determine the causative relationship between diabetics developing a mental health condition and the impact on scheme cost, adjusting for appropriate confounders. Results showed that developing a mental health condition would increase the total cost of diabetic members by 7%, increase costs in-hospital by 11% and increase total costs excluding spend on mental health related claims by 4%. Furthermore, developing a mental health condition has a greater causative impact on in-hospital costs for diabetics with progressed disease compared to those in the preliminary stages of their disease. Understanding these interactions between mental health conditions and other chronic conditions allows us to appropriately tailor disease management programmes and optimise risk management strategies with the aim of reducing scheme costs and managing premium increases.

1 CPD Point

Plenary 5: Estelle Pearson — Fact Meets Fiction: emerging risks unlike you've ever heard

Hear from leading Australian author of thrillers and Non-Executive Director John M Green on the questions you should ask and how you can craft your scenario narratives to better engage management and boards in the risk discussions every organisation needs to have. Joining him in this session is Actuary/Director, Finity Estelle Pearson.

2 CPD Points

Qualitative Assessment of Complex and Interacting Climate Risks

We traditionally quantify climate change risks as a function of the risk determinants of hazard, exposure, and vulnerability. Traditionally, insurers have been concerned with the built environment domain, focussing on assessing the damage to properties and buildings from natural disasters. Many practitioners are extending climate risk assessments to other domains to look at climate risk more holistically, as climate change does not only impact the built environment, but also the social, natural, and economics domains. But there are limitations to only relying on a quantitative assessment as climate change risk is extremely complex and interacts both internally between the determinants of risk, and externally with many other risks. This can lead to cascading and compound events with widespread systemic risk impacts. For example, vulnerabilities in one domain can stem from multiple hazards, leading to exposures in other domains, whilst exposures that change over time can create changing vulnerabilities across domains. Hazard interactions from disasters may cause feedback loops that lead to untenable capacity to support social, economic, natural and built domains. A qualitative risk assessment can help identify deficiencies in quantitative modelling and suggest improvements for future risk assessments. Our methodology for qualitative assessment refers to reports aggregated from community interviews, which involves decision-makers, local officers, emergency response officers, and other stakeholders. The methodology combs through the main conclusions from the reports to form our basis for the interactions between hazard, vulnerability, and exposure under the four domains (built, social, economic, and natural). The confidence of the interaction increases where there are multiple instances of the same interaction being noted across different reports, or sometimes across similar themes within the same report. The output from our qualitative assessment are multiple mapping diagrams that show the interactions captured within the reports within and between domains. We then draw conclusions from the mapping diagrams, which can be then used to supplement the quantitative risk assessment and identify gaps for future assessments.

1 CPD Point

Plenary 7: There When Needed - the promise of General Insurance

Actuaries Institute President David Whittle leads a discussion on the consumer promise of General Insurance. Is the process, payout and the ‘human experience’ of making a claim lining up with the promise made to consumers? Joined by Shez Ford, EGM Consumer at Allianz Australia, and Helen Rowell, David will ask – is it time to rewrite the promise? And what should the new promise look like?

2 CPD Points

Cyber’s ‘Annus Horribilis’ and the Role of Actuaries in a Changing Cyber Landscape

FY 2022/23 marked Australia’s cyber wake-up call – Australia experienced the largest breaches in its history, with the personal details of more than 10 million Australians impacted by one data breach alone. In response, there has been a suite of initiatives from government looking to tighten Australia’s cyber security settings, and prepare individuals, corporates and the companies for the breaches that will inevitability come. This has included strong signals from Australia’s corporate regulator that it will look to prosecute those companies who have not adequately prepared for cyber incidents, the development of a new cyber security strategy for the nation, and incorporation of cyber into new prudential standards for APRAregulated entities. Corporate Australia has responded to the ‘annus horribilis’ by increasing its investment in information security, and looked to the cyber insurance market to transform some of the risks faced. In this paper we: • Look at the major changes to the cyber landscape that have occurred over the previous year, and score how well corporate Australia has responded to the cyber wake-up call • Discuss how actuaries can use our unique skillset to address the challenges posed by cyber risk, and add value both in the boardroom and to policy makers by 1) measuring cyber risk, 2) designing solutions to address cyber risk, and 3) quantifying the impacts of cyber risk.

1 CPD Point

Plenary 4: Digitisation and Your Consumer

Digitisation can be more than enhancing processes and cutting costs. It’s about creating new way to understand and reach your customer, reshaping business models and upending traditional views of the customers experience. In this session actuary Iwan Juwono, Head of Insurances at Grab Insure Business and Frankie Chan, Head of Programme Value Optimisation, Air & Insurance, Cathay Pacific Airways explore how data science and AI is transforming their businesses.

1 CPD Point

Plenary 5: John M Green — Fact Meets Fiction: emerging risks unlike you've ever heard

Hear from leading Australian author of thrillers and Non-Executive Director John M Green on the questions you should ask and how you can craft your scenario narratives to better engage management and boards in the risk discussions every organisation needs to have. Joining him in this session is Actuary/Director, Finity Estelle Pearson.