December 2021 - Page 23 of 25

December 4, 2021

Cyber remains attractive, profitable to insurers: Panelists

Cyber insurance is projected to grow because it has been largely profitable for insurers and is seen as insurable by reinsurers, even as ransomware attacks accelerate, panelists said Thursday at the Insurance Information Institute’s Joint Industry Forum 2021 in New York.

They also suggested that the federal government play a greater role in the cyber insurance sector, particularly through increased information sharing.

By 2026, insurers will be writing $28 billion in cyber insurance gross written premiums, according to Paul Miskovich, New York-based chief underwriting officer for Evertas Inc., an underwriter of crypto-asset and blockchain-related risks.

Mr. Miskovich added that insurers will continue to write cyber insurance because it has been generally profitable. “It’s been profitable almost every year in the marketplace for most insurers,” he said.

Catherine Mulligan, global head of cyber in New York for Aon PLC’s Reinsurance Solutions business, said reinsurers are committed to the cyber sector and see the risk as insurable. She added that Aon is seeing some new reinsurers considering entering the market on a limited basis. Reinsurers have also made certain adjustments to capacity as they refine their understanding of the sector, she said.

While cyber insurance has been profitable for the insurance industry, ransomware is quite profitable for bad actors, according to Chris Beck, managing director in Chicago for Milliman Inc.’s cyber risk solutions practice group. “We’ve seen a large increase in ransomware attacks because they are lucrative — they are good business for cybercriminals.”

Ms. Mulligan added that cybercriminals are also becoming more automated, increasing the number of potential attacks and losses.

Moderator Dale Porfilio, chief insurance officer in New York for the Insurance Information Institute, began the session by asking if there is a role for government in the cyber insurance sector, using the federal roles in flood and terrorism insurance as examples. “We’re at that point,” he said.

“The government has more information than any one company and has intelligence operations no company” can match or replicate, Mr. Beck said.

Ms. Mulligan advocated for increased information sharing among stakeholders and suggested government might play a role in this effort by helping establish a central source for aggregated data. “Actuaries need better information” to make more informed decisions about cyber exposures and underwriting, she said.

Mr. Miskovich added that such sharing of information could be facilitated by data standardization and that the industry should “support all opportunities for data standardization.”

The Insurance Information Institute was acquired last year by The Institutes, a Malvern, Pennsylvania-based provider of education and research in risk management and property/casualty insurance.

December 4, 2021

Fed Survey Finds Supply-Chain Shortages Boosting Inflation | Business News

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON (AP) — Many parts of the country were hit by supply chain disruptions and labor shortages in November, the Federal Reserve reported Wednesday.

In a survey of business conditions around the country, the Fed’s 12 regional banks found that the economy continued to grow at a modest-to-moderate pace, and the outlook for future growth remains positive.

But some of the Fed’s some business contacts expressed uncertainty about when the problems presented by supply chain bottlenecks and labor shortages might begin to ease.

In part because of the supply chain problems, price increases were reported to be widespread across the economy.

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“There were wide-ranging input cost increases stemming from strong demand for raw materials, logistical challenges and labor market tightness,” the Fed’s report, known as the beige book, said.

The Fed survey, which is based on interviews with business contacts last month in all 12 of the Fed’s regional bank districts, will form the basis for discussions when central bank officials hold their final meeting of the year on Dec. 14-15.

In congressional testimony this week, Federal Reserve Chairman Jerome Powell said the central bank is prepared to speed up the pace of the pullback of the easy-money policies it has been using to support the economy for the past 20 months.

The Fed had been buying $120 billion in Treasury bonds and mortgage-backed securities since the spring of 2020. At its meeting last month, the central bank announced that it would start to trim those purchases, which serve to keep long-term interest rates low, by $15 billion in November and another $15 billion in December.

Powell’s comments this week indicated the Fed may announce at its December meeting that it will make larger monthly reductions in the future so that the bond purchases can be totally ended earlier than the June end-date which had been expected.

That would clear the way for the Fed to begin raising its benchmark interest rate, which was reduced to a record low of 0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in early 2020.

Both the ending of the bond purchases and the start of interest rate hikes would be expected to raise borrowing costs for consumers and businesses as a way to slow the economy and fight inflationary pressures.

Powell made his comments as inflation has surged to a three-decade high, largely because the pandemic has limited supplies at a time when the re-opening of the economy has led to high demand.

The Fed report said that companies were complaining about “persistent difficulty in hiring and retaining employees” with many leisure and hospitality firms still limiting operating hours due to a lack of workers.

The report said businesses had heard a variety of reasons for the labor shortages. Those included the lack of childcare, retirements, and continued safety concerns revolving around the persistence of COVID cases. The survey was conducted before the emergence of the new omicron variant.

“Nearly all districts reported robust wage growth,” the Fed said. “Hiring struggles and elevated turnover rates led businesses to raise wages and offer other incentives, such as bonuses and more flexible working arrangements.”

December 4, 2021

8 Ways to Make Your Holiday Meal More Affordable

Many families and friends get together to celebrate, spend time together, and share a meal during the holiday season. However, due to inflation, food is more expensive this year. If you’re worried about the financial aspect of putting together a nice holiday meal, we have some ideas that may help you save money. You don’t have to spend a lot to make the holidays special, and by making a few changes, you can pay less and still have a delicious meal. Here are eight ways to make your holiday meal more affordable.

1. Shop with a list

When you don’t have a list, it can be easy to buy more than you need and forget essential ingredients. Before you head to the store to get your holiday meal ingredients, make a shopping list. That way, you’ll have a plan, which can help you spend less and make your shopping experience a lot easier.

2. Compare prices between stores

Before you head out to shop, it’s a good idea to look at sales flyers for stores in your area and compare prices on the items you need to buy. Most stores put popular holiday meal items on sale leading up to the holiday. If you have several stores near your home, you can compare prices and buy the cheapest items at each store. Just be sure to consider the cost of gas and the distance between stores before driving all over town.

3. Don’t ignore generic brands

While shopping, take a look at the cost of generic brand items and compare them to the cost of name-brand items. In many cases, store-brand products are a lot cheaper than name-brand products. Purchasing generic ingredients can offer significant savings, and no one will know the difference.

4. Use cash back apps

Cash back apps offer an easy way to earn cash back on your purchases. These mobile apps are simple to use, and they offer cash back at many popular grocery stores and other stores. The more you use these apps, the faster your earnings will add up. Once you meet the minimum cash-out amount, you can withdraw the funds you’ve earned. You can then use these funds for a future shopping trip.

5. Host a potluck dinner

If you’re hosting this year, consider suggesting a potluck dinner where everyone brings one dish. A potluck dinner makes for a fun experience because everyone gets to contribute, and it also lessens the financial burden for everyone. If you want to keep things organized, start a group chat and have everyone communicate ahead of time about what dish they plan to bring.

6. Buy some dishes premade

It may be cheaper to buy some prepared dishes. For example, desserts may cost less at your local grocery store. If you don’t bake often, it can be costly to stock up on all the baking ingredients that you need. Many grocery stores sell inexpensive premade dessert items. You can save money and spend less time preparing your meal.

7. Create new traditions

You may think a holiday meal has to include certain dishes, but that’s not the case. You have the freedom to be creative as you plan your next meal. There are no rules that say you need to eat turkey or ham. Why not start a new tradition this year? You can get your family involved to make the planning process more fun, and it may save you some money, too.

8. Don’t be afraid to accept help

Community resources can be helpful, especially during the holiday season. Check your local community groups to see what they’re doing to help families prepare for the holidays. Some organizations will give out ingredients, full meals, or gift cards to help you buy what you need. Don’t feel embarrassed to take advantage of these resources. They exist for a reason and they can make the busy holiday season less stressful.

Your holiday meal doesn’t have to be fancy, traditional, or expensive. By getting creative and changing your shopping habits, you can make your next holiday meal more affordable. We have more personal finance resources to help you make more informed financial choices.

December 4, 2021

International Finance Forum Releases Global Finance and Development Report 2021

GUANGZHOU, China, Dec. 3, 2021 /PRNewswire/ — International Finance Forum (IFF) today released the Global Finance and Development Report 2021 (GFDR) and Global Green Finance Development Index (GGFDI) along with country rankings.

“This is the first year that IFF is releasing the GFDR report and it will be released annually during IFF global meeting in the future,” introduced Zhuang Juzhong, chief economist of IFF and a former deputy chief economist of the Asian Development Bank. “The report aims to provide an annual assessment of global economic trends and prospects, financial development and innovation, and address long-term challenges and policy issues based on cross-country data, and eventually, promote international discussion and cooperation,” added Zhuang.

The GFDR consists of three chapters:

Chapter 1: Global economic outlook, risks and policy priorities. This chapter provides the latest updates on the COVID-19 pandemic and recent global economic development, and assesses the economic outlook, risks, and policy priorities. It encourages the global community to work together to speed up the vaccination rollout and eliminate vaccine inequality, ensure a smooth monetary policy transition, end trade tensions, promote green recovery, and support low-income countries.

Chapter 2: Global green finance development index and country rankings. This chapter focuses on recent global developments of green finance and launches GGFDI with country rankings. Jointly developed by IFF and the Central University of Finance and Economics in China, GGFDI applies a quantitative measure of progress in developing green finance at the country level and focuses on three areas: policy and strategy, product and market, and international cooperation. The GGFDI also provides rankings in green finance development of the world’s 55 largest economies as of the end of 2020.

Chapter 3: Roadmap to global carbon neutrality and China’s actions. This chapter reviews and assesses the measures on transformation of global energy systems and industrial sectors, and policy measures required to achieve the 2°C and 1.5°C climate targets set by the Paris Agreement. It also summarizes China’s technical solutions and policy options for achieving dual carbon goals.

With the launch of GFDR and GGFDI, IFF is encouraging more global discussions on policies needed to end the pandemic, reduce risks to the global economic recovery, promote green investment, fight against climate change, and make development more inclusive and sustainable.

For the full report, please visit: http://iff.org.cn/uploads/2021GAM/GFAD-report20211202.pdf

SOURCE International Finance Forum (IFF)

December 3, 2021

Finance jobs: All your options

Finance jobs can offer practical experience, in a diverse set of roles, for graduates with strong financial and analytical skill sets. Graduates may apply their industry knowledge and explore a broad range of finance careers.

From accountants and economic analysts to other fulfilling career options, such as investment bankers and portfolio managers, the opportunities are limitless.

What’s it like to work in a finance job?

Personal finance, corporate finance, and government finance are widely recognized as the three finance subfields. Other subfields include investments, money and credit markets, and financial management.

Graduates and working professionals can pursue careers in corporate financial management, securities analysis, and commercial lending, along with several other financial career institutions. Finance professionals typically interact with attorneys, accountants, and insurance agents. In the right work setting, both introverts and extroverts can enjoy rewarding financial jobs and long-term careers.

Finance job seekers may seek remote opportunities as financial analysts, financial advisors, accountants, and other offsite career opportunities. Industry professionals may work between 50 and 70 hours per week. Investment bankers may log as many as 70 to 100 weekly hours. Long hours can contribute to burnout.

Salaries range from $61,000 to $137.000 plus. Finance professionals are driven by a lively, exciting, and challenging workplace with advancement opportunities and unlimited career opportunities around the world.

Finance career options

The finance industry is ever-growing for those who possess a finance degree and strong analytical and accounting skills. Explore your finance career options below and check out the best online finance master’s programs.