It’s hard to turn on the TV or radio recently without hearing reference to the cost of living crisis.. and, for consumers, car insurance is the latest household bill to soar.

The Office for National Statistics (ONS) reported that the average price of car insurance rose 43.1% in the 12 months to June 2023, whilst some motorists with policies up for renewal were dismayed to find prices rocketing by as much as 70%.

Yet the Association of British Insurers quarterly motor insurance premium tracker tells a slightly less alarming story. The average price paid for motor insurance in the first three months of 2023 was £478 – only 16% higher than 2022. Whilst the latter half of the year is likely to see this rise, it’s still not as dramatic as the ONS suggests because the figures track different things. The ONS data is based on insurance quotes, whilst the ABI looks at the prices people actually pay for both new and renewed policies.

Why is motor insurance so expensive?
Naturally the same issues apply to commercial and fleet vehicle insurance but there seems to be no easy solution for insurers, whose own costs have risen as a result of a range of circumstances. Margins have been squeezed by the rise in the cost of second hand cars during the Covid pandemic, by higher wages across the car maintenance sector and especially by a shortage of spare parts, such as microchips and semiconductors. With global supply chains disrupted by the war in Ukraine and unease in China and the Middle East, not only are these more expensive but take longer to arrive, resulting in cars being out of action for longer following a claim, so claimants need courtesy cars for longer. Meanwhile electric cars are more expensive to repair than gas-driven vehicles.

High renewal quotes across the board highlight the importance of shopping around. As that differing data shows, whilst renewal quotes can be stratospheric, it’s possible to find insurance deals that are easier on your pocket, with the help of an independent broker like Cowens.

Making savings on insurance puts individuals and businesses at risk
An increase in premiums and a decrease in confidence isn’t restricted to vehicles. Forecasts suggest that falling household incomes and an uncertain housing market will lead more people to re-evaluate their finances across the board, potentially leading to reduced demand for home and contents insurance and to consumers potentially choosing to pause or reduce paying into protection cover such as life insurance. Yet it is vital that neither individuals nor businesses skimp on these essential indemnities.

Insurance offers security in a changing world
Fortunately whilst commercial property insurance has also seen a rise in premiums (for the 23rd consecutive quarter as reported by the Council of Insurance Agents & Brokers) there has been less of a corresponding shift in demand, with business owners prepared to pay for protection in the face of escalating property values and the risk of natural catastrophes. For businesses, large or small, change is accelerating possibly at a faster pace than at any time in history with shifts in climate, technology (not least AI) and customer expectations, combined with global and political volatility, encouraging enterprises to transform their infrastructure, products, business models and cultures in order to survive. Insurance has the potential to act as a safety net in the face of those changes, providing a backstop against innumerable risks. It is important to not only react to risks but implement processes and policies aimed at mitigating risk and preventing losses – again considerations best discussed with an expert broker.

Don’t skimp on cyber insurance
One area which is seeing rapid growth (but happily where premiums have seen less of an increase) is cyber protection. As businesses rely increasingly on digital data to maintain productivity and security and improve sales, it is vital that they protect themselves from undesirable events such as corrupted or lost data or criminal acts like data breaches. This is particularly true for businesses that store personal information about their clients. Unfortunately with growing investment in online presence and ecommerce activity there is commensurate growth in the number of cyber attacks on online businesses. Cyber criminals can steal your funds, impersonate your business and trick your employees into transferring funds or merchandise to them. A cyber attack can also cause physical damage to your business equipment, for example broken computers and malfunctioning servers, so UK businesses will need more and robust cyber liability insurance to ensure they are fully protected.

What can you do to reduce risk – and premiums?
The insurance industry finds itself in a hard market thanks to the knock-on effect of global natural disasters and the residual effect of the economic downturn. In that situation underwriters look more closely at losses, safety records and financials so it’s fundamental that businesses of all sizes are assured that risk management and safety programmes are reviewed and in place. Since many insurers also conduct credit checks it’s wise to pay invoices on time and keep your company’s financial records in order, to ensure you are not flagged as a risk.

Businesses (and individuals) should also start any renewal processes early – and shop around! By using a reliable independent insurance broker like Cowens to source a suitable and comprehensive package to suit your specific needs, you can ensure you are covered against potential losses – and look to the future with confidence. Find out more by contacting Cowens today.

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According to recent Gov.UK reports, four in ten businesses reported having cybersecurity breaches with an estimated of over £10,000 in the previous year Despite these figures, fewer businesses are deploying security monitoring tools, meaning they are less aware of breaches or attacks their businesses might face. Cybercrime is far more likely to be committed against SME businesses among business groups, and as the world becomes more interconnected, cyber-crimes against SME businesses are rising.

GDPR has woken many businesses up to the risks of cyber-crime and their responsibilities in this arena. This is not just about your reputation and livelihood; it is also about protecting your employees, customers and clients as well.

Unfortunately, this is likely to be an area of growing concern and highlights the need for adequate safeguards/controls and a Cyber Liability Insurance policy.

Cowens Survival Capability and Risk Solutions recommend that on a basic premise, you should:

Prepare a data breach plan with step-by-step actions to take
Rehearse the plan with all employees
Designate who is responsible for what during a breach
Regularly circulate and update the plan, so senior staff are familiar with it.

Cowens can help you create your cyber plan, implement it and monitor it.

If you would like to know more about the products and services currently available please contact us.

1. https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2021/cyber-security-breaches-survey-2021
2. https://www.csoonline.com/article/3440069/uk-cybersecurity-statistics-you-need-to-know.html

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Edward Hamilton comments- “This is the process of convincing a victim to willingly send money to a Hacker using very, VERY convincing conversation.

I have personally had experience of three friends in the last few months who were on the verge of losing money to these types of attacks and whilst it is most likely you will get a call from these hackers as a home user, the benefit of this advice does also carry over to your work. I am not attempting to scare with the following points, but these hackers are professional and organised. So please pay attention on these brief guidelines to stop you becoming their next victim:

• If in ANY doubt when someone calls you from a Bank or Internet Service Provider or Software Company, hang up and call them directly using a previously known number. Even if you were expecting a call from that company. This is the same advice as don’t reply to a suspicious email, just use existing contact details you already trust. If the Hacker calls you back, do the same thing again – Call the company directly or get advice from your local trusted IT Manager. Just to note, you will never receive a legitimate call from Microsoft – tell them you will alert the police and to not call back.

• No-one and I mean NO-ONE that you do not trust implicitly, will EVER ask you to download and run a file on your Computer. If they do, do NOT do it. This allows the hacker full access to your computer. Once that happens, literally everything you access is now compromised. Once you realise what has happened, you will (or should) spend the next few days changing the passwords on literally everything. And your online identity is also now at risk and you have now been added to a list of targets that is shared amongst criminals. You can then expect more calls of a similar nature.

• There are various, very clever ways of convincing you the caller is legitimate. This is called Social Engineering and several very switched on individuals I know, have been caught out.

• If you pay these criminals, in most cases you will not be able to recover the payment from the bank because ‘you’ paid them and the money was not stolen.

• So – you get a call, you think it is legitimate. You allow them to run some stuff on your PC. At some point you think – this does not feel right. You must immediately kill your internet connection. Simplest way is to turn off your main router. That will buy you some time to speak to your bank to freeze your account but you must act quickly. It becomes a race against time to stop money disappearing from your online bank accounts and remove access to critical things like your email account. Your computer must also be checked for any surreptitious software before it is allowed back onto the internet.

If you are a business and are concerned about your cyber risks, please contact Cowens on 01623 649931 or info@cowensgroup.co.uk

Cowens- Insuring your future today…Ensuring your future tomorrow

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In light of HMRC’s recent warning against fraudsters using email, text and even social media to scam money from unsuspecting taxpayers, it’s never been more important to ensure you have the right policy in place to cover all eventualities.

Many people don’t realise this type of incident is actually covered under a crime insurance policy. It covers real money rather than a cyber policy aimed at losing data and subsequent associated costs. This is where it becomes confusing and an easy mistake to make when the criminals have used cyberspace to facilitate their fraud.

Karl Sutcliffe, Broking Director at Cowens Survival Capability, commented: “Almost all of us have received a scam HMRC ‘tax rebate’ or something similar and businesses are no different. Scam phone calls and emails come through to some businesses on almost a daily basis containing fraudulent invoices, requests for bank details or cheque signing. These operations are well-thought-out and extremely convincing.

“In cases such as the HMRC scams, where actual money is moved from an account, crime insurance is essential. We’ve noticed a surprising number of businesses who believe their cyber policy will fully cover theft of this type, but sadly it isn’t the case. The good news is that a crime insurance policy can be easily added to your commercial programme, and the premiums are tailored to individual risks – we ensure all clients understand the difference in cover and that they have in place exactly what they need as these scams become increasingly widespread and professional.”

Some cyber policies offer a crime extension, but this still may not cover a business for all eventualities. CEO at Cowens, Paul Chaplin, said: “The issue with crime extensions on cyber policies is that the cover is often quite a lot narrower, even in cyberspace. Some extensions only cover pure electronic theft; therefore, if the insured is involved in any way – for example, if they open an attachment or transfer the money to the criminal, there is no cover at all. It’s also essential to remember that a cyber policy will not cover theft by an employee or a face-to-face trick, and a simple crime extension won’t cover the vast majority of standalone crimes. I cannot emphasise enough how important it is to have a competent insurance broker who understands the differences in cover.”

Karl continued: “In cases like the HMRC scams and similar, your employees can be your biggest weakness. I’ve seen a business lose thousands because a scam was sent to a busy employee who wasn’t briefed properly or wasn’t paying attention! Start with communication and strategy; every staff member should receive step-by-step training on what to do if they believe they are at risk and should know who to report any concerns to. Businesses should put a whistle-blowingCrime concept.

Procedure in place – your IT Manager must alert your Financial Director of any suspicious activity, for example, and appropriate action is taken.

“Businesses should have a minimum two-step authentication process on all payments and quarterly fraud risk assessments across the whole business. You should work together with your insurance broker and bank to ensure all precautions are in place, as this will ensure your insurer will assist and settle any claims should the worse still happen.

“Finally, remember if something seems too good to be true, it usually is! Always encourage staff to be vigilant, put precautions in place and together with a tailored commercial crime policy, the potential impact on the business will be significantly reduced.”

For more information on putting a crime insurance policy in place for your business or assessing your other insurance requirements, contact Cowens on: info@cowensgroup.co.uk.

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KP snacks have been the latest high profile company that have been hit with a cyberattack. In a statement, KP Snacks said: “On Friday, 28 January, we became aware that we were unfortunately victims of a ransomware incident. As soon as we became aware of the incident, we enacted our cyber-security response plan and engaged a leading forensic information technology firm and legal counsel to assist us in our investigation.

We have been continuing to keep our colleagues, customers, and suppliers informed of any developments and apologise for any disruption this may have caused.”

In these types of cases, hackers will gain entry to a computer network, steal data, and then copy the victim’s sensitive documents. In return for deleting and decrypting these files, hackers demand a sum of money, which often comes at a very hefty price point.

Last June, the largest meat processing company in the world, JBS, suffered a ransomware attack which caused disruption to meat supply lines in several countries. To resolve the situation, the company forked out the equivalent of $11m (£7.8m) in ransoms to the criminals who hacked them.

You may think that cyber crime is only relevant to large organisations but SME businesses and individuals are being targeted on a more regular and frequent basis, with just as devastating conclusions for a SME and an individual as the aforementioned larger organisations, especially as SMEs and individuals lack the IT protection clout of a large organisation.

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