CEO’s Message: A Year of Growth, Innovation, and Transformation

 

CEO’s Message: A Year of Growth, Innovation, and Transformation

 

As we draw 2024 to a close, I am delighted to reflect on what has been a year of remarkable growth, innovation, and development for KIC.

Our success this year has been reinforced by the hard work and dedication of our team, whose enhanced professional expertise has allowed us to elevate our service and deliver greater value to our clients and partners.

One of the key achievements this year has been the strengthening of our claims service. By improving efficiency and responsiveness, we have ensured that our clients receive the support they need when it matters most.

This focus on service excellence has been matched by the introduction of new products and solutions, including ILS offerings, Cyber coverage, and Parametric lines. These innovative additions reflect our ability to anticipate market trends and address the evolving needs of our clients.

Our rebranding initiative has also been a defining milestone for KIC in 2024. It has strengthened our market presence and realigned our identity with our vision for the future. Coupled with strategic investments in talent, including the recruitment of key personnel such as producing underwriters and a new Head of Insurance, we are better positioned than ever to drive growth and deliver exceptional results.

The progress we have made this year is a testament to the collective efforts of our team and the trust placed in us by our clients, partners, and stakeholders. As we look ahead to 2025, we remain committed to innovation, service excellence, and sustainable growth as we continue to evolve and build on our achievements. 

Wishing you and your loved ones a joyful holiday season and a happy, healthy, and prosperous New Year. Here’s to a successful and fulfilling 2025!

 

Warm regards,

Shay Reches

Chief Executive officer

We Are Heading to the Upcoming India Rendezvous 2025

 

We Are Heading to the Upcoming India Rendezvous 2025 to Showcase Our Advanced Insurance Solutions:

We are pleased to announce our participation in the upcoming insurance conference India Rendezvous 2025, a prestigious event bringing together industry professionals, fostering collaboration, and exploring new opportunities in the evolving insurance market.

During the conference, we look forward to meeting with our current broker partners to strengthen existing collaborations and discuss future possibilities. Additionally, we aim to connect with new brokers interested in exploring innovative insurance solutions and joining us in delivering value to clients.

Among the key products we will showcase:

• Innovative Cyber Insurance: A comprehensive solution addressing the advanced cybersecurity needs of businesses. As part of this offering, we will present our exclusive collaboration with Cyxcel, which provides advanced cybersecurity services to our clients.
• Personal Accident and Key Person Insurance: Essential coverage to ensure stability and protection for employees and key executives.
• Quick-Start Directors & Officers (D&O) Insurance Program: A simple and comprehensive solution providing peace of mind to senior management.

If you’re attending the conference, we would be delighted to schedule a personal meeting to showcase our products and discuss how we can work together to create value and provide cutting-edge solutions.

We look forward to seeing you at the conference and strengthening our collaborations.

 

 

 

 

 

 

 

https://www.cyxcel.com/

The Rise of Cyberattacks

 

 

 

 

 

 

 

The Rise of Cyberattacks:

Why Small Businesses Must Prepare and Protect Themselves

In recent years, there has been a dramatic increase in cyberattacks, with small and medium-sized businesses (SMBs) being a prime target. These attacks often stem from a lack of advanced security measures and the higher vulnerability of smaller businesses to malicious actors. The growing frequency of attacks and their financial repercussions highlight the urgent need for proper preparation.

Key Statistics on Cyberattacks

• Prevalence of Cyberattacks:

Approximately 6% of businesses reported experiencing a cyberattack in the past year. Among businesses using external IT security providers, the exposure rate rises to 18%, compared to only 4% for those not using external providers.

• Highly Vulnerable Businesses:
  Small businesses with 5–20 employees face the highest risk, with an 11% exposure rate, particularly in industrial sectors.
• Financial Losses:
  43% of cyberattacks target small businesses. The average cost of such an attack is approximately $200,000, a potentially devastating sum for a small enterprise.

Why Are Small Businesses a Prime Target?

Many small businesses operate under the misconception that they are not appealing targets for hackers due to their size or the assumption that they lack valuable data. However, hackers often exploit this mindset. Small businesses typically have:

• Weaker Security Measures: Limited budgets and resources lead to inadequate investment in cybersecurity infrastructure.
• Lack of Expertise: Many small businesses lack dedicated IT or cybersecurity staff, making their systems less monitored and more vulnerable.
• High-Value Data: Even small businesses handle sensitive customer or financial information that hackers can exploit or sell.

This combination of factors makes small businesses particularly attractive to cybercriminals, emphasizing the urgent need for proper protection.

How Can Small Businesses Protect Themselves?

While these statistics are concerning, small businesses can implement several fundamental measures to reduce their cyber risks:

1. Install Security Software and Firewalls:
   Antivirus software and firewalls help block malicious software and unauthorized access.
2. Regular Software Updates:
   Keeping operating systems and applications up to date prevents exploitation of security vulnerabilities.
3. Employee Training:
   Educating staff on recognizing phishing attempts and using strong passwords can significantly reduce exposure to cyber threats.
4. Data Backups:
   Regularly backing up critical data and storing it securely allows for quick recovery in case of data loss.
5. Limit Access to Sensitive Information:
   Restricting access to critical data to only those employees who need it minimizes the risk of internal breaches.

The Critical Need for Cyber Insurance

While security measures provide an essential layer of protection, they cannot guarantee immunity from attacks. This is where cyber insurance plays a vital role, offering financial and operational support to businesses in the event of a cyber incident:

• Coverage for Data Recovery Costs:
  Reimbursement for restoring critical data.
• Legal Expense Coverage:
  Support for legal costs arising from customer or partner claims due to a breach.
• Financial Loss Protection:
  Compensation for revenue losses caused by business interruption.
• Incident Management Support:
  Funding for expert services to manage and mitigate the effects of a cyberattack.

Conclusion:

Small and medium-sized businesses are increasingly targeted by cyberattacks, often because they are seen as “soft targets” with minimal protection. Despite this, many SMBs continue to underestimate their risk, leaving themselves vulnerable to costly and damaging incidents.

To protect themselves, small businesses must prioritize cybersecurity by implementing robust protection measures, educating their employees, and securing a comprehensive cyber insurance policy. In a world where cyber threats evolve rapidly, these steps are not just recommended—they are essential.

Investing in cybersecurity and insurance not only safeguards a business’s operations but also ensures its long-term survival in an increasingly digital and threat-prone environment.

 

Sheli Bremer-Tchaig, Adv.

Head of Insurance

Defective Workmanship and Products Liability – where do they differ

 

 

 

 

 

 

 

Defective Workmanship and Products Liability – where do they differ

 

A comprehensive commercial liability policy almost always comes with the extensions of Defective Workmanship and Products Liability but it does not mean that no losses cannot fall between the cracks. One needs to carefully understand what cover is offered by both types of cover in order to understand which section will apply and if there is indeed cover.

I had an interesting matter presented to me me for a decision in which the policy holder was asked to source a compressor for a commercial client and then install it for them. Part of the installation involved taking a second hand coupling that belonged to the third party which would be used to facilitate the installation. No part of the compressor belonged to the third party but the coupling did that was used.

 

In finalizing the installation an error was made while fixing in the coupling and it was hammered incorrectly out of line. As a result of this the entire compressor failed and effectively had to be totally respired or replaced. The cost of the coupling was negligible. The key point to decide on for this claim is firstly is this a defective workmanship or products liability claim. The big point of departure is with products liability there is no or was no cover in this policy for product recall and only resultant damage caused by the entire product is covered. The products itself included. If it is looked at as a defective workmanship claim, one normally excludes the part worked upon under the exclusion of rectifying defective work but all resultant damage would be covered including the part of the compressor free from the defective workmanship. This would mean only the coupling would be excluded and the majority of the loss would be covered including.

Defective workmanship is negligent workmanship performed on third party property and the damage then presents itself after handover. At all times the damaged property remains the property of the third party. Products liability is very different. The product does not belong to the third party while being installed and effectively if it is installed wrong and that then required a replacement, regardless of any defective workmanship performed in the installation, the claim is in essence a products liability claim as the item has not been handed over to the third party and does not yet belong to the third party. It’s in essence a product recall and replacement. There was no other resultant damage. Installation is also part of the definition of the Products Liability cover.

The claim was hotly debated between Insurers, loss adjuster and policyholder. There is rarely a black and white approach to a liability claim and one could see the defective workmanship to the coupling as being the trigger and the compressor damage being the resultant damage. I was against this given the compressor had not yet been handed over and contractually the client had not performed in terms of the contract.

It is important for policyholders to understand the cover they have and to make sure they take our products recall cover if they want to plug this gap.

Danny Joffe, Adv.

Director & Chairman of Risk Committee