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News and Events
Commercial Risk Advisor - March 2018
Property Insurance Rates Expected to Increase as a Result of
Over the past few years, most commercial insurance rates
have remained flat or decreased because of strong competition between insurance
carriers. However, the significant damage caused by Hurricanes Harvey, Irma and
Maria in 2017 will likely cause many carriers to raise property insurance rates
in 2018 for some policyholders.
Although most businesses aren’t exposed to risks from
hurricanes or other catastrophic weather events, experts believe that many
property insurance rates will increase as insurance carriers attempt to recover
any losses they experienced in 2017. Businesses that are located in coastal
areas or have significant flood risks will likely see the highest increases,
while businesses with good loss histories and strong risk mitigation procedures
may not experience any rate increases.
Here are some other ways that the 2017 hurricanes may affect
- Experts don’t expect property rate increases to affect other
lines of insurance. However, carriers that experienced significant losses or
relied heavily on reinsurance may raise their rates.
- Business interruption coverage was an important topic as
many workplaces closed their doors in the aftermath of the 2017 hurricanes. As
a result, underwriters will carefully examine the interruption exposures of
both individual businesses and their vendors when determining rates in 2018.
- Insured losses from the 2017 hurricanes and other
catastrophic weather events have been estimated at $100 billion or more.
However, experts believe that property insurance remains profitable overall,
and rate increases shouldn’t be an indicator of a long-term hardening market.
5 Steps to Prepare for the EU’s Upcoming General Data
The European Union’s (EU) General Data Protection Regulation
(GDPR) comes into effect on May 25, 2018, and gives EU citizens more control
over their personal data. However, U.S. businesses must also comply with the
rule if they control or process any EU citizen’s data. Businesses that don’t
comply with the GDPR could face substantial fines, sanctions and other
The GDPR includes a broad definition of personal data, and
any information that can directly or indirectly identify an individual can fall
under the rule’s jurisdiction. Because of this, any business that controls,
uses or manages personal data needs to be prepared to comply with the new rule.
Here are some steps your business can take to review its data management
procedures and get ready for the GDPR:
- Conduct a comprehensive data audit. Determine what data you
collect from your customers, vendors or partners and where it’s stored. This
information should help guide your other preparations.
- Make your employees aware of the GDPR. Employers need to
increase the privacy awareness of their employees to ensure they can recognize
potential privacy exposures and respond to data requests.
- Define your organization’s data processing activities. The
GDPR requires organizations to have at least one of six “lawful bases” in order
to process personal data, and explicit consent is one of them. In order to
comply with the GDPR, you should understand what kind of data your organization
collects, determine the lawful basis that is most appropriate based on how you
use that data and document it.
- Establish comprehensive data breach procedures. If a data
breach occurs, your business must be ready to detect, report and investigate
the cause of any lost data. The GDPR requires businesses to report a data
breach to a relevant data protection supervisory agency—and, in certain cases,
EU citizens—within 72 hours.
- Consider appointing a data protection officer. This
individual can be responsible for managing personal data and navigating new