Series of three articles Digitalization has given rise to financial fraud fueled by the increase in internet and social media users, who have become easy prey to a sophisticated group of scammers using the latest technology and legitimate platforms to lure and entrap more victims. The insurance industry is increasingly taking measures both to address cyber risk awareness and protection. Read the first of the three series of articles on Cyber risks. Financial fraud leads the pack in cyber crimes Financial scams accounted for 57% of all financially motivated cyber crime in 2021 according to new research by cyber security firm Group-IB. The research has revealed that the scam industry is becoming more structured and involves more and more parties divided into hierarchical groups. The number of such groups jumped to a record high of 390, which is 3.5 times more than 2020 when the maximum number of active groups was close to 110. Due to scam-as-a-service (SaaS), in 2021 the number of cyber criminals in one scam gang increased 10 times compared to 2020 and now reaches 100. Traffic has become the circulatory system of scam projects. Group-IB researchers emphasise that the number of websites used for purchasing and providing ‘grey’ and illegal traffic and that lure victims into fraudulent schemes has increased by 1.5 times in the last one year. Scammers are evolving in 2022 on a new level of scam attack automation: No more non-targeted users. Scammers are now attracting specific groups of victims to increase conversion rates. Social media is more often becoming the first point of contact between scammers and their potential victims. The number of brand-impersonating scam resources created per month also increased. In the Middle East, Asia Pacific and Europe, Group-IB analysts noted an increase of 150%, 83%, and 89% respectively. While hacker groups continue successfully to attack business and government organisations worldwide, scammers have adopted their methods to improve their schemes. Chaotic loners attract organised criminal gangs with SaaS. Group-IB deputy head of digital risk protection Antony Dolgalev said, “Scammers are now focused on attracting targeted traffic. In the past, their schemes were aimed at unsuitable users who were brought to a fraudulent resource, but since 2021 the strategy has changed drastically.” Scammers now attract specific groups of victims to increase conversion rates. The statistics relating to grey and illegal traffic on one platform, which was taken as an example by Group-IB DRP analysts, showed that India, US and Vietnam are the main countries where the platform is distributed. Digitalisation is the main global trend and fraud is no exception and the fact that the number of internet users increased up to 4.95bn in 2021, contributed to this. Moreover, the number of social media users and unique mobile phone users has also grown and has reached 4.62bn (+10% compared to 2020). In 2021, 48.15% of scam schemes started with an active dialogue with the victim, experts concluded. There was also a trend to simplify scam end-pages, with scammers actively shifting towards spreading scam proposals via legitimate platforms such as Facebook and Instagram. Source: asiainsurancereview.com

PHOTO L to R: Atty. Albert Lawrence A. Vinzon-Division Manager of Anti-Money Laundering and Corporate Governance Division (AMLCGD); Atty. Theodore Joseph Campanano; Atty. Ma. Patricia Foria; Atty. Randy G. Serrano - Deputy Insurance Commissioner for Legal Services Group; Edgardo D. Rosario; Rogelio J. Concepcion; Michael F. Rellosa; Agnes L. Silaya; Shirley F. Dela Cruz; Divina T. Pamute - Supervising Insurance Specialist of AMLCGD; Grace Christy A. Domingo-Supervising Insurance Specialist of AMLCGD PIRA, led by its Chairman and Legal Committee Chair, Edgardo D. Rosario, paid a courtesy visit on May 26, 2022, to Atty. Randy G. Serrano, the new Deputy Insurance Commissioner for Legal Services Group. Also present from PIRA were Atty. Ma. Patricia E. Foria and Atty. Theodore Joseph Campañano, both Legal Committee Members; PIRA Executive Director Michael F. Rellosa, General Manager Rogelio J. Concepcion, Agnes L. Silaya and Shirley F. de la Cruz. Apart from introducing the Association and providing updates on its various collaborations with the Insurance Commission, the PIRA team also discussed with Atty Serrano pending legal issues affecting the non-life insurance industry, particularly IC Advisories on the Anti Money Laundering and Counter Terrorism Finance.

By Herminia S. Jacinto THE Insurance Commission turned 73 this year, and the celebration was held last April 1 at the Philippine International Convention Center. The event was attended by representatives from government and business. It was on Jan. 3, 1949 that the then Bureau of Banking, which supervised the insurance industry, was renamed as the Office of the Insurance Commissioner by virtue of Republic Act 275. In 1974, Presidential Decree 612 was promulgated, creating the Insurance Code of the Philippines. The code has undergone several revisions; the last one was on Aug. 15, 2013 when Republic Act 10607, also known as the Amended Insurance Code, was signed into law by then president Benigno Aquino 3rd. The code has covered all aspects of insurance supervision, including the provision for a progressive increase in the paid-up capital or net worth of the insurance companies every three years until 2022. There have been 11 insurance commissioners since 1949, among them former senator Juan Ponce Enrile, lawyer Gregoria Cruz Arnaldo, whose tenure was the longest (1970-1985) and lawyer Eduardo Malinis, who served two terms (1995 to 2004; 2007 to 2010). Heretofore, the term of the insurance commissioners was determined by the president of the Philippines, but the Amended Insurance Code of 2013 now fixes the term to six years without reappointment. The present insurance commissioner is lawyer Dennis Funa. True to its mandate of safeguarding the rights and interests of the insuring public and pre-need and HMO customers, the Insurance Commission officers and staff are professionals coming from different fields of expertise so we can be assured of efficient and fast service. Many of its functions are now computerized so there was not much interruption of its efficient service during the pandemic period. The website www.insurance.gov.ph was up and running 24/7 so information could easily be sourced or sent to their office. Like all business operations, the insurance business was also affected by the slump in 2020, the first year of the pandemic, but by 2021, the industry was back with vengeance! The 31 life companies produced premium income of P310 billion in 2021, or an increase of 13 percent over 2020 premiums. Insurance consciousness and the need for protection and savings was noticeably high during this period. Net income for 2021 was P30 billion, almost the same as the 2020 results. Source: manilatimes.net

It was May 13, 2015 when a fire broke out inside the Kentex Manufacturing Corporation in Valenzuela, Metro Manila. With over 200 workers, 150 were present inside the footwear factory when welding sparks ignited chemicals which quickly caused smoke and fire to spread. Black smoke engulfed the building quickly, rendering those in the second floor unable to escape. There were 74 casualties in the fire. The incident gave rise to a series of cases and efforts of unions arraigning the company to answer its alleged illegal and exploitative labor practices and health and safety protocols. In 2016, little a year over the incident, Ombudsman Carpio-Morales ordered criminal charges to be filed against the city mayor, 6 city officials, and the Kentex company owner. According to Business Human Rights, “Morales said their investigation showed that the city officials issued business permits and fire safety certificates to Kentex despite blatant violations of the Fire Code, such as failing to “install a wet standpipe system, unserviceable extinguishers, lack of automatic fire alarm and sprinkler system, and absence of fire exit drills for workers.”…” In 2019, the Supreme Court ordered the Kentex contractor to pay Php 1.4 million to its workers. Sources: https://www.business-humanrights.org/en/latest-news/kentexs-lawyer-responds-to-questions-about-health-safety-standards-fire-code-labour-rights/ https://www.business-humanrights.org/en/latest-news/philippines-supreme-court-orders-kentex-contractor-to-pay-php14m-in-unpaid-wages/

Updates at the Insurance Commission on 27 April 2022. Left to right: Ms. Erika Liv B. Cervantes, IC Ms. Glenda A. Ortaliz, IC Mr. Darius M. de Guzman, NatRe Atty. Maria Palanca, World Bank Mr. Michael F. Rellosa, PIRA Exec. Director Ms. Deanna Villacin, World Bank Mr. Edgardo D. Rosario, PIRA Chairman IC Dep. Comm. Erickson H. Balmes Mr. Benedikt Lukas Signer, World Bank Senior Financial Sector Specialist Ms. Tatiana Skalon, World Bank Mr. Olivier Mahul, World Bank Atty. Joanne Frances DC. Castro, IC Atty. Brian Gale T. Sibuyan, IC Ms. Edna G. Bernales, IC Atty. Albert Lawrence A. Vinzon, IC Atty. Camille May P. Medina, IC Atty. Alwyn Franz P. Villaruel, IC

PERILS Industry Exposure Database 2022: EUR 64.8 trillion property assets insured against storm damage in Europe, growth in all covered markets PERILS has today released the PERILS Industry Exposure Database (IED) 2022. The database contains up-to-date information about property market sums insured exposed to natural perils in Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Indonesia, Italy, Luxembourg, the Netherlands, New Zealand, Norway, the Philippines, Sweden, Switzerland, Thailand, Turkey and the United Kingdom. The market sums insured are available by CRESTA zone, line of business and coverage type. For more information, please see the attached press release. We thank our insurance partners for providing us with their most up-to-date exposure information to create the new IEDs, which can be accessed via the PERILS Portal at www.perils.org. Base de données d’exposition PERILS 2022 : 64 800 milliards d’euros d’actifs immobiliers assurés contre le risque tempête en Europe, croissance sur tous les marchés couverts PERILS a publié aujourd’hui la mise à jour de sa base de données d’exposition marché 2022. La base de données contient les sommes assurées actualisées pour les risques de catastrophes naturelles dans les pays suivants : Allemagne, Australie, Autriche, Belgique, Canada, Danemark, France, Indonésie, Irlande, Italie, Luxembourg, Norvège, Nouvelle-Zélande, Pays-Bas, Philippines, Royaume-Uni, Suède, Suisse, Thaïlande, Turquie. Les sommes assurées marché sont disponibles par zone CRESTA et par type de risque. Pour plus d’information, veuillez consulter le communiqué de presse ci-joint. Nous remercions vivement nos partenaires assureurs de nous avoir fourni leurs données d’exposition les plus à jour, cela nous a permis d’actualiser notre base de données d’exposition. Cette dernière est disponible via le portail de PERILS à l’adresse www.perils.org. PERILS Markt-VS Datenbank 2022: EUR 64‘800 Milliarden Bestandswerte in Europa gegen Sturmschäden versichert, Wachstum in allen abgedeckten Märkten Die PERILS AG hat heute die Ausgabe der aktualisierten Markt-VS Datenbank für das Jahr 2022 bekanntgegeben. Die Datenbank enthält Naturgefahren-exponierte Versicherungssummen für Australien, Belgien, Dänemark, Deutschland, Frankreich, Grossbritannien, Holland, Indonesien, Irland, Italien, Kanada, Luxemburg, Neuseeland, Norwegen, Österreich, Philippinen, Schweden, Schweiz, Thailand und die Türkei. Für jedes Land sind die Markt-Bestandsdaten pro CRESTA Zone, Sachbranche und Deckungstyp erhältlich. Weitere Informationen finden Sie bitte in der beigelegten Pressemitteilung. Wir bedanken uns ganz herzlich bei unseren Versicherungspartnern für die Bereitstellung der neusten VS Informationen, welche die Aktualisierung der Market-VS Datenbank ermöglichte. Die Datenbank ist im PERILS Portal unter www.perils.org abrufbar.

It was the early morning of April 15 in 1912 when the famous RMS Titanic, the largest, most advanced, and best luxurious ship at the time, sunk. With an estimated number of 2,200 passengers, the peacetime maritime tragedy had 1,500 casualties, unfortunately while on its fourth day of its maiden voyage. As History recalls: On April 14, after four days of uneventful sailing, Titanic received sporadic reports of ice from other ships, but she was sailing on calm seas under a moonless, clear sky. At about 11:30 p.m., a lookout saw an iceberg coming out of a slight haze dead ahead, then rang the warning bell and telephoned the bridge. The engines were quickly reversed and the ship was turned sharply—instead of making direct impact, Titanic seemed to graze along the side of the berg, sprinkling ice fragments on the forward deck. But the lookouts did not expect the underwater spur of the iceberg, which slashed the ship. Checking the damage with seawater already flooding the compartments, the Titanic was said to remain afloat for a calculation of an hour or more, which gave way to the lifeboat evacuations – which were also later on confirmed to be disorganized and very haphazard. The Titanic fully sank at approximately 2:20 in the morning of April 15, with only 705 survivors. Sources: https://www.nationalgeographic.org/thisday/apr15/titanic-sinks https://www.history.com/topics/early-20th-century-us/titanic