Insurers: Energy firm cyber-defense is ‘too weak’

According to what BBC has learned, power companies are being refused insurance cover for cyber-attacks because their defenses are perceived as weak.

AXIS Capital, is a group of Insurance companies based in Bermuda, London, Dublin, Canada, Australia and Singapore (servicing SE Asian countries as well such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more) who underwrite Energy Insurance has the same concern regarding this incidence.

According to underwriters at Lloyd’s of London, they have seen a “huge increase” in demand for cover from energy firms.

However surveyor assessments of the cyber-defenses in place determined that protections were insufficient.

Energy industry veterans said they were “not surprised” the companies were being refused cover.

“In thelast year or so we have seen a huge increase in demand from energy and utility companies,” said Laila Khudari, an underwriter at the Kiln Syndicate, which offers cover via Lloyd’s of London.

The market is one of not many places in the world where businesses can go to insure things like container ships, oil tankers, and large development projects and to safeguard cash that would help them pull through after tragedies.


For years, said Ms Khudari, Kiln and many other syndicates had offered cover for data breaches, to help companies recover if attackers penetrated networks and stole customer information.

Now, she said, the same firms were seeking multi-million pound policies to help them rebuild if their computers and power-generation networks were damaged in a cyber-attack.

“They are all worried about their reliance on computer systems and how they can offset that with insurance,” she said.

Every company that uses for cover has to allow experts employed by Kiln and other underwriters examine their systems to realize if they are doing adequate to maintain trespassers out.

Assessors watch the steps firms take to maintain invaders gone, how they guarantee software is preserved current and how they manage networks of hardware that can span regions or whole countries.

Unfortunately, said Ms Khudari, after such checks were carried out, the majority of applicants were turned away because their cyber-defences were lacking.

“We would not want insurance to be a substitute for security,” she said.

What was not clear, she said, was why firms were suddenly seeking cover in large numbers.

Even though many governments had sent warnings about the risk from hackers, attackers and hacktivists to utility firms and other organizations running dangerous infrastructure, no one had instructed them to get cover.

“I think what’s behind it is the increase in threats and the fact that a lot of these systems were never previously connected to the outside world,” she said.

Mike Assante, who helped develop cyber-security standards for US utilities and now helps to teach IT staff how to defend critical infrastructure including power networks, said it was “unfortunately not surprising” that insurers were turning away energy firms.

Power generators and distributors had struggled with the complexity and size of the networks they managed, he said. In addition they had found it hard to find and recruit staff with the specialist skills to defend these systems, he added.

“There have been a number of incidents that have caused company leadership to re-evaluate their risk and develop strategies to mitigate it,” he said in an email to the BBC.

Growing threat

Financial pressures and the ability to manage systems remotely was inadvertently giving attackers a loophole they could slip through, said Nathan McNeill, chief strategy officer at remote management firm Bomgar.

Trying to cut costs by linking up plant and machinery to a control centre so they could be managed remotely meant those systems were effectively exposed to the net, he said.

“If something has basic connectivity then it will become internet connectivity through some channel,” he said.

This left critical infrastructure exposed, he said, because typically the control systems for such hardware was written long before the web age and had only rudimentary security tools.

Identified as Scada (Supervisory Control and Data Acquisition), this software has come under growing inspection by security researchers who have uncovered many flaws in it.

In addition, added Mr McNeill, it was often very difficult to update the core code in many Scada systems to close loopholes that attackers had slipped through.

Ed Skoudis, who runs “war games” for IT and security staff at many US utilities, said the numbers of attacks on Scada and other control systems was escalating.

Malware was being written just to get at particular vulnerable elements in the infrastructure run by many utilities and manufacturers, he said.

Several invaders were just peculiar but others were supposed to be carrying out investigation in service of some upcoming occurrence.

US power companies had begun sharing information about attacks so everyone knew about all the threats to them, said Mr Skoudis.

“However,” he added, “it’s surprising no big incident has happened given how weak the infrastructure is. It’s very hackable.” This can lead to scams.


Producing Power from Geothermal Energy

Our Earth’s core is made up of 4 billion year old gas and dust consolidation. This core generates heat; at 4000 miles deep temperatures can move 9000 degrees F. Relative to humanity’s lifecycle Earth Core heat or Geothermal Energy signifies a boundless energy means.

It has been an engineering challenge tapping into this energy source. Heat induces transmission form the core onto the mantel and then into the dense rock layers creating magma that travels gradually up headed to the surface. In this track it heats up rocks and water that slides to the cracks all the way up to 700 degrees F. Our planet has an area meant by geological systems that uncover high heat levels at comparative low depths termed Pacific Ring of Fire.

Geothermal energy can be applied straight for industrial or commercial applications and likewise at consumer level for precise applications. The finest application is the usage of this energy for electric power generation. Our current ecosystem operates primarily on electric power and consuming a dependable and constant source of green energy will help sustain an ecological balance. Unfortunately, some people had managed to incorporate scams regarding this topic.

To tap into this limitless energy resource is a systematic procedure and with no complaints. There is a pre-drilling stage that entails of geographical, geological and geophysical reviews. Applying this data a drilling point is designated for an exploration hole. Because of this hole the engineers can examine details of the sub-terrain aquifer, the total of heat/pressure it will put out and the composition of the liquid/vapor once gathering all this initial data a plan for a production well system is applied.

AXIS Capital is a group of Insurance companies based in Bermuda, London, Dublin, Canada, Australia and Singapore (servicing SE Asian countries as well such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more) underwrite Property & Casualty, Professional Lines, Terrorism, Marine, Energy, Aviation, Credit & Political Risk, Accident & Health and specialty program business. The article below is under Energy Insurance particularly in generating power from geothermal energy to make our consumers more aware of our services.

Micro-Health Insurance: How and why it works in Indonesia

Municipal solid waste (MSW) is graded as the highest importance waste stream in Indonesia, grounded on a country needs assessment analysis by the United Nations Environment Programme. Organic waste is not far behind schedule. It’s not so much a lawful issue—Indonesia has approved a waste management law, nonetheless like the 18th amendment to the U.S. Constitution it is “not well implemented and enforced at all governmental levels. It is, though, costly to apply and pricey for consumers, which has led to low rates of obedience.

Urban areas such as the second largest city in East Java Malang create more than 55,000 tonnes of solid waste every single day but then again only 50 to 60% is collected, the remainder moves to open dump sites, which have been associated to “early deaths, severe illness, and devalued quality of life.” There have been many complaints about this issue.

Households afforded with government-run waste management services are obligatory to pay a once-a-month collection fee—as minute as around $1.10 and as much as $3.20.

That’s sensible for several Indonesians; nevertheless still almost 40% are living on less than $1.80 per day (adjusted for purchasing power).

“We are building a system for management of garbage in communities,” Gamal Albinsaid said. He’s the founder of the social enterprise Garbage Clinical Insurance.

“It’s a micro-health insurance program. Communities give garbage to us and pay a premium, about IDR 10,000 ($0.83). We convert the money to health fund and we give back to them in the form of health financing.”

Basically, GCI collects, repurposes or disposes people’s garbage at a cheaper-than-government rate and offers subscribers with “free” excellent health services, which consist of primary care at local clinics, family planning, nutrition consultations, in-school health advocacy, home visits for patients with chronic illnesses, and even telemedicine consultations with licensed doctors—rare in emerging markets.

It’s a welcome service in a country where, according to the World Bank, more than 75% of health care expenditures are paid for out-of-pocket. But it wasn’t always simple. Albinsaid, 24, tried this project in 2010, but failed:

“Premiums were very low, the system wasn’t good. We modified, took a scientific approach. My team now has a good system for monitoring and tracking information, which makes it easy to replicate the system.

“I have five clinics right now. At every clinic there are, maybe, 300 to 500 members. Some people go outside [for care], but we are always building sense of belonging from communities to our project.”

Four of GCI’s clinics—typically open from 7am till 9pm—are in Malang. One clinic is in a village outside the city limits. These clinics are operated by a total of 88 volunteers and interns, 15 doctors, 12 nurses, and midwives. 47 staff members are paid with profits from the waste collection service. “They get standard payment in Indonesia,” Albinsaid said.

“We’re social entrepreneurs. We focus on social impact: how can we manage a health fund to improve a community, and make it sustainable? I’m looking for young people. They have big spirit and some of them don’t care about the money first.”

“Some doctors, some just come to us … they want to work with us to develop this project.”

Both organic and non-organic garbage is accepted for collection. Organic waste is repurposed with the Takakura composting method. This is a process that purifies waste over fermentation – then then sold back to Indonesians as fertilizer: “We get a lot of money from fertilizer entrepreneurs.” Albinsaid said he can sell 1kg of fertilizer for IDR 5,000, or about $0.41. Non-organic waste is gathered, organized and sold to the Malang City garbage bank for recycling. The GCI team has anticipations to hold recycling themselves with extra program funding. Warning! These wastes are very harmful to health.

This project is a little bit of modification in a big city. But Albinsaid said micro-health insurance is catching on in Indonesia, and fast, which is good because Indonesia’s population could total 280 million by 2030 with more than 70% of Indonesians living in urban areas.

“I have five clinics. But, honestly, the system is starting to replicate in other cities with other people. They have coordinated with us. We help them, we advise them, and we guide them guide them to start this project, but we make sure that community gets impact from the project.”

AXIS Capital is a group of global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, i.e. health insurance that serves a host of industries and diverse coverage needs through our operating subsidiaries and branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States.

Axis Capital, Bermuda: Health Insurance False Promises to Indonesians created many complaints

Up till now for all the numerous healthcare schemes that have begun at district and provincial levels, the general image is one of failing health pointers and facilities through the country. A 2008 World Health Organization report found that decentralization has ran to the erosion of a once incorporated health system, extremely discouragement the worth of disease surveillance and public health programs. Diseases like polio and leprosy, once under control, are resurfacing and the districts are not capable to attend to these or other complicated diseases like avian influenza.

AXIS Capital is a group of global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, i.e. health insurance that serves a host of industries and diverse coverage needs through our operating subsidiaries and branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States is in one of the Indonesians who are given false promises.

There are many complaints. Health experts are doubtful of local programs that are presented by district officials with slight knowledge or experience in the health sector. The occurrence that many plots are intended chiefly to entice votes frequently means that they do not match the community’s complex health requirements. And some regions are stressed to handle the costs. In East Java, where the government once agitated for regional administrations’ right to implement local programs, healthcare services are overwhelmed and underfunded. In 2010, the program was seriously in debt, with a budget distribution of just Rp50 billion (a little over $US 5 million) and costs count Rp112 billion. This type of blow-out is not unusual. Frequently it occurs for the reason that the poor health infrastructure may not be able to deal with the unexpected spike in demand that comes once services are proposed for free. Sometimes the problem comes when officials wrongly (and often corruptly) recognize residents as ‘poor’ and therefore qualified for free services, leading to overloading of the system.

Actually, health insurance may shortly no longer be the vote getter that regional politicians have come to depend on. In 2012 the national parliament passed the bill on Social Security Administering Bodies (BPJS), carrying significant parts of SJSN into result. The new bill principally recentralizes social security administration and makes one non-profit body responsible for implementing a nation-wide health insurance program for every Indonesians, counting the poor and individuals working in the informal sector. In theory, all the local programs will now be folded into this nationwide scheme. The uncertain starts of universal social protection, even though an Indonesian welfare state, are now noticeable.

To be certain, Indonesia’s system of public health is tormented by profound difficulties, numerous made worse by the policy incoherence that has come with political democratization and decentralization. In the regions, commoners still lament the worth of the healthcare they can get in the public system and people who can have enough money to go to private providers or even overseas. Nonetheless in many places, moreover, it’s now stress-free to find people who express with astonishment and enjoyment at the point that they or family members have been treated without paying a thing.

Axis Capital, Bermuda: A history of healthcare in Indonesia

Local governments initially started carrying health insurance back in 2003 when Megawati Soekarnoputri’s government presented the Health Service Insurance for Poor Families program, or JPK-Gakin. The notion was for district managements to apply their personal community health insurance schemes in line with local requirements. Nevertheless, limited programs ever actually got off the ground before Susilo Bambang Yudhoyono’s new government presented a bill that laid the foundation for a nation-wide program and made JPK-Gakin redundant, Law no. 40/2004 on a National Social Security System (SJSN). Simultaneously, Yudhoyono’s government announced a program to run free, however basic, healthcare to the poor – Askeskin (health insurance for the poor), which was substituted in 2008 by Jamkesmas (community health insurance).

Certain regional administrations put up a round. In 2005, East Java’s government led a test at the Constitutional Court demanding that SJSN gave the central government a monopoly on social service provision and broke the constitution and Law no. 32/2004 on Regional Governance. The court approved that SJSN did not stop local governments from emerging their own social security programs, as well as for healthcare. Ever since, the quantity of local health insurance programs has increased year on year.

One of the groundbreaking systems was Jaminan Kesehatan Jembrana (JKJ) presented in 2003 by Gede Winasa, the head of Jembrana district in Bali. According to this scheme, all members of JKJ, may they be poor or non-poor get free primary care from public and private providers. Residents branded as poor acquire secondary and tertiary care too. Money comes chiefly from the district budget, with about central and provincial government subsidies. Winasa had preceding experience in the health sector, equally as a dentist and as a health bureaucrat, and he was extensively acclaimed for his idea and actual leadership by the media. It appears that several politicians round the country saw at the good promotional he received, and his fame with voters, and free healthcare schemes arose to spread.

Many Jamkesda programs bid simple care at community health centres (puskesmas), and typically just for the poor who aren’t covered by other programs, resembling the national scheme Jamkesmas. And reviews propose that because of the above reasons, scams and frauds sprout. But in resource-rich regions such as Aceh, healthcare programs are far more openhanded. In 2009 Aceh’s then Governor, Irwandi Yusuf, presented the Jaminan Kesehatan Aceh program. Similar to the scheme in Jembrana, JKA bids universal coverage for all residents of Aceh, and it began a dramatic point in the acceptance of health services with the consequence that some local hospitals have writhed to manage ever since.

JKA likewise covers almost all illnesses and patients with complex illnesses can be flown to hospitals in Jakarta to have treatment. Prices are so far about Rp. 400 billion (US$41 million) per year. Officials on the border of Aceh report that people go over from North Sumatra to get Aceh identity cards that will let them have free healthcare. The money for JKA comes from ‘special autonomy funds’ compensated by the central government as a consequence of the 2005 peace deal that ended the separatist insurgency in Aceh.

At the same time in the poorer regions of Indonesia, local administrations sense bound to bid some kind of free or heavily subsidized health service. The government introduced an insurance program that offered free basic care at public hospitals to residents not covered by alternative schemes, like Jamkesmasinn Kupang, the capital city of one of Indonesia’s poorest provinces, East Nusa Tenggara. While in Central Lombok, instead of providing basic healthcare coverage, the district head assured a much contracted program that covered free maternal health services to pregnant women.

Indonesia: Health Care Mega-Spending –Whose Have No Complaints?

AXIS Capital is a group of global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, i.e. health insurance that serves a host of industries and diverse coverage needs through our operating subsidiaries and branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States.
An effort to guarantee universal health care provision by 2014 in the world’s fourth-most crowded country essentially requires large-scale investments, and is opening up opportunities for the private sector.

Indonesia is obligating billions of dollars as it targets to meet the government’s promise to run universal health care for its 240m citizens by January 1, 2014. This investment, joint with the robust economic growth that is boosting Indonesians’ incomes, is leading to fast growing mandate for health services, equipment and pharmaceuticals, in addition to a must for more medical professionals. Reviews says the country is fast becoming one of the world’s most-important health care markets, and international and domestic firms are progressively profiting as the market grows and opens up.

The establishment of universal coverage involves the creation of a Social Security Management Agency (BPJS), linking existing public insurance schemes and prolonging them to cover all Indonesians deprived of health insurance. The BPJS will gather insurance premiums and pay health care bills, and is anticipated to begin an early investment of Rp25trn ($2.59m).

It must be the world’s largest “single payer” of health care, a sole payer being a body which buys health care from a single insurance pool. The UK’s National Health Service (NHS) is presently the world’s major single payer. But a warning though, be very watchful of insurance scams and frauds.

The BPJS will conquest schemes like Jamkesmas, an insurance programme presented in 2008 that covers more than 75m poorer Indonesians. According to the international press, the Jamkesmas scheme offers a broad safety net but not a great depth of coverage, with an annual budget of less than $10 per head. Presently, around 40% of the population is covered by insurance schemes providing for state employees and their dependents, along with the poor.

Similar to the growth of insurance coverage, the government and private sector are working to upsurge the capability of the sector. “Our estimates say the government will require about 150,000 hospital beds by 2014. That means increasing the number of beds by 30% in only two years, as the current number of beds in the country is approximately 110,000,” Jonathan Sudharta, the director of Mensa Group, told OBG.

According to the UN’s World Health Organisation (WHO) currently, the country has a ratio of six hospital beds per 10,000 people, compared to 18 in Malaysia and 21 in Thailand.

Increasing health care will furthermore require a considerable upsurge in the amount of health care professionals. At this time, the country delays behind regional standards for the quantity of doctors as a proportion of the population: Indonesia has three physicians per 10,000 people, while Malaysia has nine and India, six. There is both a scarcity of medical graduates and the challenge of “brain drain”, whereby several of Indonesia’s best doctors and nurses relocate abroad to work, counting to Malaysia, where wages are a lot higher and facilities better.


Healthy Indonesia Cards might incorporate JKN insurance program: Indonesians has no complaints about it

Observers have said President-elect Joko “Jokowi” Widodo may rename the existing national health insurance (JKN) program the Healthy Indonesia Card (KIS) program, as both health programs share a similar purpose.

AXIS Capital is a group of global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, i.e. health insurance that serves a host of industries and diverse coverage needs through our operating subsidiaries and branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States. The company also service SE Asian countries such as Jakarta Indonesia, KL Malaysia and many more.

If the KIS, a free health-care program promoted by Jokowi during his presidential campaign, were to stand on its own, it would require new legislation that would consume too much time and resources, says Hasbullah Thabrany, professor at the University of Indonesia’s School of Public Health.

If Jokowi chooses to carry on or spread out the current nationwide JKN program, which is managed bHealth Cardy the Social Security Management Agency (BPJS), it would spare time and it would be quicker reaching those people who are yet waiting for improved quality health care. Due to this we can avoid scams and frauds.

“Replacing the [JKN] cards with KIS cards is a very practical thing to do, by allowing the new president to focus on improving the program’s quality,” Hasbullah said during a discussion on the two health programs on Tuesday.

Throughout the presidential campaign, Jokowi said he would implement the KIS as a national program.

Limited details about the program have been made accessible but several think through it to be alike to the Healthy Jakarta Card (KJS) program, which Jokowi applied in the capital throughout his two years as governor.

The KJS fundamentally extended existing health-care programs, specifically Gakin and SKTM, with the Jakarta administration distributing cards and providing health care, not just to those people who were deliberated as poor, however to everyone with a Jakarta identity card who applied to join the program.

Hasbullah said that expanding the JKN would require more work, including a possible revision of the current framework for the insurance, and the BPJS as its provider.

“For example, the new government should be aware that only marginalized people are entitled to free health coverage under the JKN program. Even if it is good, if everyone ends up being covered, that would contravene our regulation,” he said.

Article 14 of the National Social Security System (SJSN) Law specifies that the government is obliged to pay premiums for medical treatment for impoverished people.

Once known as Jamkesmas, the health coverage for the poor is one of the programs now provided by the BPJS.

The non-profit body also copes health insurance offered by PT Askes (a former entity that became the BPJS), PT Jamsostek and PT Asabri.

Grounded on BPJS data, as of Aug. 8, the program covered 126.4 million people in total and cooperated with 1,551 hospitals nationwide. The program’s goal is to cover the entire Indonesian population by 2019.

Rieke Diah Pitaloka, a member of the House of Representatives’ Commission IX overseeing health and manpower, emphasized that KIS was initiated as a refinement to the BPJS’ national health insurance program.

Rieke, who is also a politician with the Indonesian Democratic Party of Struggle (PDI-P), said the current JKN program had yet to reach many marginalized people.

“We even see in the news that sometimes people are rejected treatment by hospitals due to financial issues,” she said.

Hasto Kristiyanto, deputy head of Jokowi’s transition team, said they were optimistic that the KIS would be approved by House lawmakers.

“[KIS is] intended for the good of the people,” he said. (Idb/ask)