เทคนิคสู่ความส าเรจ็ของ CEO ในการเพ่ิมประสิทธิภาพการบริหารจดัการ

ด้วยการประกนัวินาศภยั

ดร.อภิสิทธ์ิ อนันตนาถรตัน กรรมการผูอ้ านวยการใหญ่

24 สิงหาคม 2561

Basic steps for corporate risk management

1. Risk / Hazard Identification

2. Risk / Hazard Assessment

3. Risk / Hazard Management • Risk Avoidance

• Risk Prevention

• Risk Control

• Risk Transfer

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4. Supervising the implementation of plan • Watching for any new emerging risks

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Basic steps for corporate risk management

1. Internet of Things invites cyber attacks

2. Manufacturers and service providers of all kinds can face substantial indemnity risks

3. Extreme Natural Disasters

4. Economic Volatility

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Emerging risks for the insurance industry, its outcome and society

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Risk Transfer : A strategy to help protect your business

• Cyber attacks fact file • Cybercrime cost the global economy $600 billion in 2017,

up from $450 billion in 2014 (McAfee Inc.)

• The average cost of a cyber breach amounted to $0.4 million in 2017. However, the average cost rose to nearly $6 million for big companies (NetDiligence)

• In Thailand, number of cybercrime case is 3,237 in 2017, compared to 1,745 in 2013 (The Electronic Transactions Development Agency)

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Internet of Things invites cyber attacks

• The fastest growing segment of insurance product, with the premium growth rate of 23% annually over the past 5 years (AON)

• Premiums are likely to grow to $20 billion by 2025, from the current $3 billion-$4 billion (Allianz)

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Cyber Insurance

Cyber Insurance: Who should buy 8

Companies who publish electronic content

Companies who transact business and generate revenues from the Internet

Companies who host, store, share or transmit proprietary & confidential data

Companies who have exposures to consumer Identity Theft, including notification requirements

Companies whose business operations would be impacted by a service disruption

Companies who hold confidential employee data

Companies who outsource storage, processing or sharing of confidential information with third party service providers

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• ธนาคารขนาดใหญ่เตรียมท าประกนัภยัไซเบอร ์โดยหลายแห่งตัง้ทีมศึกษาเร่ืองน้ีตัง้แต่ปลายปีท่ีผา่นมา แต่ยงัไม่ได้ข้อสรปุเน่ืองจากเบีย้ประกนัภยัอยู่ในระดบัสงู

• ประกอบกบัมีบริษทัท่ีรบัประกนัภยัประเภท

น้ีน้อย เพียง 8 แห่ง ท าให้ท่ีผา่นมามีเพียงธนาคารออมสินท่ีท าประกนัภยัน้ีแล้ว

Cyber Insurance: Who should buy

Source : กรงุเทพธรุกจิ

Cyber Insurance: Type of Cyber Insurance 10

Cyber Liability

Technology Error and Omission

Cyber Security

First Party Cover Cover insured’s own cost resulting from breach of data • Forensics IT, Legal, PR Costs • Regulatory Investigation – Costs &

Fines where insurable by law • Notification & Monitoring • Electronic Data Reconstitution • Loss of Income and Costs • Cyber Extortion • Business Interruption following the network disruption

Third Party Cover Cover liability of insured resulting from threats, damage to or loss of information or use of system and networks • Personal & Corporate Data

Liability • Outsourcing Liability • Data Security Liability • Media Liability • Defense Costs and Damages

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Equifax case On 7 September 2017, Equifax, one of the largest credit reporting bureaus in the United States, reported that the names, addresses, social security numbers, birth dates and some driver license numbers of 143 million individuals in the United States (along with some personal information for residents of Canada and the United Kingdom) had been breached. In addition, credit card numbers for approximately 200,000 individuals were also accessed

Cyber Insurance: Case study

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Reported losses of Equifax • In the five trading days following the disclosure, the company lost USD 3.5 billion

in market value (Reuters, 2017) and the stock price remained 30% down at the end of September (Petterson, 2017).

• The company is expected to face multiple state and federal investigations into the breach (Basak and Surane, 2017).

• At least 100 lawsuits had been filed including consumer class actions, a securities class action and also multiple lawsuits by municipal authorities (Reuters, 2017; Petterson, 2017). In many cases, the company was accused of violating its responsibility under the Fair Credit Reporting Act to keep the information it collects private. The company has agreed to provide credit monitoring services to all US consumers for a period of one year (the company is a provider of such services). The potential cost of settling the consumer lawsuits is estimated at USD 200 million (Petterson, 2017).

Cyber Insurance: Case study

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Reported losses of Equifax • The data confidentiality breach has also led to new regulatory proposals related

to the protection of information by credit reporting bureaus (Insurance Journal, 2017a; Insurance Journal, 2017b).

• Several senior executives (including the Chief Executive Officer) have resigned or taken early retirement and some reports suggest that a clawback of executive compensation is being considered (Advisen, 2017c; McCrank, Voltz and Mukherjee, 2017)

• The company reportedly has USD 100 million to USD 150 million in stand-alone cyber insurance coverage (Basak and Surane, 2017).

Cyber Insurance: Case study

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Manufacturers and service providers of all kinds can face substantial indemnity risks การด าเนินคดีแบบกลุ่ม (Class Action Lawsuit) • พรบ.แก้ไขเพ่ิมเติมประมวลกฎหมายวิธีพิจารณาความแพ่ง ฉบบัท่ี 26 พศ.2558 เรื่อง

การด าเนินคดีแบบกลุ่ม ประกาศในราชกิจจานุเบกษาเมื่อวนัท่ี 7 เมษายน 2558 • เปิดโอกาสให้ประชาชนผูไ้ด้รบัผลกระทบสามารถรวมกลุ่มกนัฟ้องร้องได้ ต่างจากเดิม

ท่ีแต่ละคนต้องต่างคนต่างฟ้อง ส่งผลให้ค่าสินไหมทดแทนท่ีต้องชดใช้หากแพ้คดีแต่ละครัง้มีมลูค่าสงูมาก

• เป็นวิธีการท่ีสามารถคุ้มครองผูเ้สียหายจ านวนมากได้ในการด าเนินคดีเพียงคดีเดียว สร้างความสะดวกให้กบัผูเ้สียหายท่ีไม่มีศกัยภาพฟ้องคดีด้วยตนเอง หรือกรณีท่ีความเสียหายท่ีเกิดกบัผูเ้สียหายแต่ละรายไม่มากนัก ไม่คุ้มค่ากบัการฟ้องร้องเป็นรายคน

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• ก่อนหน้าท่ีกฎหมายการฟ้องแบบ Class Action จะถกูบงัคบัใช้ ผูเ้สียหายท่ีได้รบัผลกระทบคล้ายกนัสามารถฟ้องร่วมกนัได้ แต่ผูเ้สียหายแต่ละคนยงัต้องพิจารณาคดีแยกไปแบบเด่ียว

• คดีท่ีประชาชนสามารถรวมกลุ่มกนัฟ้องร้องได้นัน้จะต้องเป็นคดีดงัต่อไปน้ี • คดีละเมิด • คดีผิดสญัญา • คดีเรียกร้องสิทธิตามกฎหมายต่างๆ เช่น กฎหมายส่ิงแวดล้อม การคุ้มครอง

ผูบ้ริโภค กฎหมายแรงงาน

Manufacturers and service providers of all kinds can face substantial indemnity risks

• Professional Indemnity Insurance

Directors and Officers’ Liability Insurance (D&O)

• Public Liability Insurance

• Product Liability Insurance

• Product Recall Insurance

• etc.

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Manufacturers and service providers of all kinds can face substantial indemnity risks

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Directors and Officers’ Liability Insurance (D&O)

Director or Officer means person who was, now is, or shall become: • a director or officer (as defined under Thai law) of the Company including the

equivalent position in any other jurisdiction; or • a de facto director appointed, designated or elected to the position of a director,

regardless of the name that is given to the position or a natural person who performs the duties of a director but is not validly appointed, designated or elected as a director by shareholders’ meeting or a single juristic person shareholder under Thai law.

Include Employee who was, now is or shall become an employee of the Company but only in respect of any Claim for • Wrongful Act(s) committed or allegedly committed by the Employee when acting

in a managerial or supervisory capacity • Employment Related Wrongful Act(s).

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A Side Coverage

Directors & Officers

B Side Coverage

Company Reimbursement

C Side Coverage

Company Entity

Extension

Employment Practice Liability

(EPL)

Covers the loss of the Company arising from any Securities Claim (shares and stock in the share capital of the Company including debentures, debenture stock, loan stock and bonds)

Covers the Company for directors’ and officers' losses when the Company does indemnify them (Deductible / Retention is applicable)

Covers loss against the Company alleging an Employment Related Wrongful Act

Covers the personal liability of corporate directors and officers, and their spouses against the actual or alleged wrongful acts in managing a company

Directors and Officers’ Liability Insurance (D&O)

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Executives mistakenly believe their companies are

protected under their General Liability Insurance

(Public Liability Policy) or umbrella business

insurance policies

D&O coverage in place

(as a form of protection

for the investors) will be

able to secure the

venture capital or

funding from investors

Illegal acts or illegal profits are generally not covered under D&O insurance

With the D&O Coverage,

company can attract and retain

qualified directors as they

might otherwise be reluctant to

put their personal assets at

risk.

Public, private and non-profit companies can face D&O litigation risks (not only Public company) Without D&O

Insurance, defending a lawsuit could be financially devastating to company and directors and officers

Error, Omission, Negligence in the performance of professional services can not be claimed under D&O

Directors and Officers’ Liability Insurance (D&O)

• Cover compensation payments and legal fees if your business is found responsible for injury or property damage to a member of the public

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Public Liability Insurance

• Cover lawsuit alleging bodily injury or property damage caused by defective or faulty product

• Bodily Injury can result in; Medical bills, Loss images, Loss of love and affection to family members, Pain and suffering, Disability and death

• Property damage is physical damage, Loss of use

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Product Liability Insurance

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Product Recall Insurance

Industry Average Claim Value (US dollar)

Automotive 2.5 million

Food and Beverage 1.5 million

IT & Electronics 1.3 million

Retail 0.7 million

Source : Allianz

Product Recall Insurance Section A; Cover direct expenses associated with your product recall

• Cost associated with notifying customers

• Shipping cost

• Extra warehouse and storage expenses

• Actual cost to dispose of the products

• Cost of extra personal required to conduct the recall

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Section B; Cover damage of a third party • The recall expenses of any third party including the cost to repair

or replace

• Business Interruption losses

• The cost to repair and rehabilitate brand reputation

• The additional cost to purchase substitute goods to replace

• Cost of extra personnel required to conduct the recall

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Product Recall Insurance

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Source : Swiss Re

• Number of natural catastrophes has been rising steadily • Economic losses related to catastrophes in 2017 is 337 billion, accounting for

0.44% of global GDP, compared to the previous 10 years average of 0.25%

Extreme Natural Disasters

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Source : Swiss Re

• In 2017, insured loss is 144 billion, or only 43% of total global economic losses • The gap between average insured loss and average total economic loss has been

widen. • Over the past 10 year, the average growth rate of insured losses is 5.4%, whereas

that of economic losses is 5.9%

Extreme Natural Disasters

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• Accuracy index triggers due to advanced technology e.g. satellite, meteorological information technology

• No claims survey, faster payout • Example

• Tsunami insurance (Japan), covers infrastructure damage as well as clean-up and recovery costs

• Weather Index Insurance for real estate & hospitality (Japan), covers business from weather variation which exceed specified indices such as wind speed, rainfall level

• Typhoon Warning Insurance (Hongkong), paid out automatically if a level 8 storm or above hit the area.

Parametric Insurance

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• Trade war between USA and China $430 billion of economic loss is anticipated

• Economic sanction with Iran Higher oil price • Trade war between USA and EU • Conflicts between countries, more frequent in ending up with

economic sanctions • USA and Turkey • Saudi Arabia and Canada

Economic Volatility

Cover risk of buyer non payment due to • Commercial risk (insolvency of buyer, protracted default)

• Political risk due to the action or inaction of a buyer’s government including currency inconvertibility, transfer of payment, war and civil commotion, confiscation, etc.

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Trade credit Insurance

THANK YOU

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