Cyber Insurance Case Study - 1428 Words

Introduction: Data is the new gold and insuring data is the new billion-dollar line of business. Data protection methods aren’t unbreakable; they merely act as a deterrent for hackers. For disruptive cyber attacks, businesses need cyber insurance to help indemnify the loss of business, reputation, and to provide services to those breached. Cyber insurance offers the potential for extremely large losses that admitted carriers tend to avoid. Surplus lines companies are more willing to write reasonably high loss limits on these policies. Ironically, the issue with cyber liability coverage to date is a lack of data. Pricing this risk is incredibly difficult due to small sample sizes, reporting bias, lack of insurance specific data, and no†¦show more content†¦Rebuilding consumer trust after a cyber breach is crucial, which is why many companies offer free credit monitoring and identity theft monitoring. Insurers are taking a more active role in risk management with cyber lines than other lines. AIG, the largest writer of cyber policies, has strategic partnerships with IBM and cybersecurity companies to help their insured population understand their risks and how to best limit them (AIG). This active step in limiting insured risk is similar to health insurers using activity monitors to incentivize active lifestyles. Cyber policies are now mainly written as stand-alone product, allowing for more customization to fit the needs of businesses seeking the coverage. Common coverages include: loss of business income, extortion, corporate data risk, property coverage, and costs relating to reporting cyber breaches including legal fees. Insurers are wary of the loss potential, as such â€Å"many insurers are also setting limits below the levels sought by their clients† and imposing â€Å"restrictive exclusions and conditions† (O’Hearn 5). The combination of tight underwriting criteria, low policy limits, and high cost of coverage inhibits the desirability of cyber insurance, yet this class is growing sharply. Risks With cyber risk, the possibility of large losses is high. According to a NetDiligence study, the median cyber claimShow MoreRelatedTechnological Innovations Are Transforming Almost All Industry1267 Words   |  6 PagesTechnological innovations are transforming almost all industry sectors today including insurance. The primary aim of insurance sector is profitable growth and the use of innovative technologies is one of the most effective ways to enable then achieve this goal. However, many insurance organizations are challenged to keep up with the rapid evolution of technology. Although new technologies are critical for businesses in insurance industry, implementing them require huge capital and resources. 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Legal and Ethical Framework Issue

Question: Discuss about the Legal and Ethical Framework Issue. Answer: Introduction: There are number of workers and organizations which are related to many fields, and they are operating their work in some boundaries which includes legal and ethical framework. In other words, all industries work under some applicable laws and ethical standards. In Australia, there is an organization which is working for disable peoples and it is known as National Disability Services. National Disability Services NDS is the peak body in Australia which deals with the non government organizations providing disability service. This body represents almost 1100 organizations which provide services in disability sector (NDS, n.d.). Ethical issue in disability industry and its Impact on client: Workers in community and disability sector are regularly working under legal and political environment, but maximum time problems faced by them is ethical rather than legal or political. It is important to understand the ethical issues in disability sector. Ethical standards mean set of principles and values through which actions of individuals and organizations are judged as right and wrong. All workers perform their duties with their own values and principles, and it is necessary that they must be aware about these values because they deal with ethical issues on daily basis (Community door, n.d.). This paper examines the ethical dilemma which is faced by workers of disability industry and that is protection of clients rights. The main task of disability services workers is to provide support to clients and ensure that their rights are protected. Many rights of clients are protected by law but there are some rights which get protection through the philosophy and policies of the organization. It is the duty of worker of disability service sector to protect the rights of client which are related to confidentiality and consultancy, and they also owe duty of care towards their client. The main aspect of this duty of care involves the protection against abuse and also reports the suspected abuse to appropriate authority. This protection also includes understanding of role and responsibility of legal guardians (Community door, n.d.). Disability service workers deal with the sensitive information of the client on regular basis which are communicated to them in confidence and trust. In relation to service provision confidentiality is the most important prospect because it safeguards the privacy of client and also develops trust between client and service provider. Confidentiality means workers are not allowed to disclose the information of client which is provided to them by the client. There are number of organizations which are engaged in disability industry, and these organizations set up various policies and procedures to deal with the issue of confidentiality. This issue is an integral part of organization policy and it is considered at both ethical as well as legal level also. Different legislations are framed at legal level such as The United Nations Convention on the Rights of Persons with Disabilities, The National Standards for Disability Services, The Privacy Act 1988 (Cth), and The Australian Privacy Pr inciples (Community door,n.d.). Impact on client- As stated above client and workers share relation of trust, and all the information provided by client to service workers is provided in confidence. It is the duty of service worker to protect the rights of client related to privacy and confidentiality. Information provided by client is confidential in nature and provided by client under confidence. In case any information which is confidential and disclosed by worker can become threat for client mentally and physically. Any disclosure of such information cause harmful effect on client. Such disclosure not only effect the client only but it also effect the reputation of organization and create legal consequences for organization. Therefore, it is necessary that organization frame policies for the protection of right of client (Community door, n.d.). Alternatives to solve this issue and most preferred alternative: Following are some alternatives which can be used by organization to deal with this ethical issue: Social workers must ensure that they do not discuss the information of client with their friends and relatives, and they also ensure that material kept in files only contain information about the services provided to clients or any factor which may affect the delivery of services and no other information. Confidential documents must be kept at safe place and not available for public access such as keep the confidential documents in locked bag or case. Information related to client must not disclose to nay relative or neighbor of the client who may contact with the organization to find out whether client is taking the service or not. Information must not be disclosed with other agencies which are not in connection with client, and must ensure that names and other personal details of clients should not be revealed in public forums such as meetings, conferences (DSS, n.d.). Organization must frame strict policies and procedures to deal with this issue. Most preferred alternative: the most preferred alternative is strict framework made by organizations for the purpose of dealing with issue of confidentiality. It is necessary that organizations framed strict provisions for those who breach the trust of client and disclose the information to other people. Policies and procedures framed by organizations must be prepared by experts so that there is no chance of any loopholes (Robbinson, 2007). Recommendations: In this paper we recommend that this ethical issue must be considered on serious note by organizations and other authorities because it can cause serious threat on client and reputation of organization. Disable people are already discriminated by the society and in case any confidential information related to them is disclosed than it might be possible that other person to whom information is revealed used that information against disable people. Organizations must frame such rules and penalties for workers and other individuals who have access to such information, so that they think twice before disclosing such information (AHRC, n.d.). Conclusion: At last we conclude, there is fiduciary relationship between client and organization, and all information disclosed by disable person to service provider is disclosed under confidence. In case any information is disclosed by service provider then it is considered as breach of trust, and organizations must frame policies and procedures to deal with this issue. This issue is not only ethical issue but it is considered at legal level also. Service providers also own duty of care towards client, and it is their prime duty that they protect the right of client. Therefore, it is necessary that service provider in disability industry ensures that they does not violate the right of confidentiality of client. References: NDS. About NDS. Available at: https://www.nds.org.au/about. Accessed on 2nd March 2017. Community door. Work within a legal and ethical framework. Available at: https://etraining.communitydoor.org.au/course/view.php?id=3. Accessed on 2nd March 2017. Community door. Work within a legal and ethical framework. Available at: https://etraining.communitydoor.org.au/mod/page/view.php?id=55. Accessed on 2nd March 2017. Community door. Work within a legal and ethical framework. Available at: https://etraining.communitydoor.org.au/mod/page/view.php?id=67. Accessed on 2nd March 2017. Community door. Respond holistically to client issues. Available at: https://etraining.communitydoor.org.au/mod/page/view.php?id=156. Accessed on 2nd March 2017. DSS. National Standards for Disability Services. Available at: https://www.dss.gov.au/sites/default/files/documents/12_2013/nsds_web.pdf. Accessed on 2nd March 2017. AHRC. Topic 8: Legal and ethical considerations of service delivery. Available at: https://www.humanrights.gov.au/sites/default/files/VET%20Disability%20Unit%20Trainers%20Manual%20-%20Topic%208.pdf. Accessed on 2nd March 2017. Robinson, D. (2007). Managing Ethical Dilemmas in Non-Profit Organizations. Available at: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.925.560rep=rep1type=pdf. Accessed on 2nd March 2017.