GENERAL DATA PROTECTION REGULATION WHAT THIS MEANS FOR YOU NOVEMBER 2016
GENERAL DATA PROTECTION REGULATION Adopted April 2016 by the EU Council and Parliament, EU 2016/679 Replaces the Data Protection Directive (95/46/EC) from 1995 As a regulation the GDPR needs no implementation into national law Will apply to the processing of personal data of data subjects who reside within the EU by both controllers and processors where they offer goods or services to people in the EU or monitor their behaviour A data controller means the natural or legal person who determines the purposes and means of the processing of personal data A data processor means a natural or legal person who processes personal data on behalf of the data controller A data subject means an individual who is the subject of personal data. 77% Of mid-sized and large US companies will have cyber insurance in the next 12 months this will influence purchasing worldwide 2
CYBER BY THE NUMBERS Source: Ponemon Institute Research Findings 3
WHO ARE THE VICTIMS? 4
2014 NETDILIGENCE CYBER CLAIMS STUDY Per Breach Costs - Average Claim $ 733K (median $ 144K) Large Company - $ 2.9 million Medium Company - $ 688K Small Company - $ 664 K Per Record Costs - Average per record cost $ 956 (up, 2013 was $ 307) - Cost Range pennies - $ 11K per record Crisis Services Costs (forensics, legal counsel, notification & credit monitoring) - Average cost of crisis services $ 366K (down, 2013 was $ 737) - Median cost of crisis services $ 110K Legal Costs (defence & settlement) - Average cost of defence $ 698K (up, was $ 575K in 2013) - Average cost of settlement $ 558K (up, was $ 258K in 2013) 5
BIG BREACHES BIG PRICE TAG, START SMALL Cost of data breach is higher than anticipated - Target s gross breach expenses totalled $252 million, insurance compensation bought that down to $162 million - Home Depot expects $100 million in insurance payments towards $232 million in expenses from its 2014 breach - Anthem breach expected to cost more than $100 million Target breach started with a compromised HVAC company T-Mobile customer data breached through Experian JP Morgan customer data breached after an affiliate was breached Lockheed Martin breach through RSA 6
KEY CHANGES/IMPACT OF THE GDPR 7
KEY CHANGES/IMPACT OF THE GDPR 8
WHAT NOW? Prepare now! Designate a Data Protection Officer Establish a steering committee to identify and implement your GDPR roadmap Undertake a full risk assessment to establish where the gaps and issues lie Have a plan in case a data breach occurs. Strongly consider putting a cyber insurance programme in place well before the regulation incepts. 9
WORKING TOGETHER During an interview with Sky News 01.11.2016 Sarah Stephens (Head of Cyber, Technology and Media E&O, JLT Specialty), when asked about the UK Government s National Cyber Security Strategy, commented This is an important step towards tackling the growing problem of cyber-security, and funding on this level will ensure that the UK is moving towards the level of strong cyber capability that we re currently seeing in the US. The government s plans to invest in home-grown talent by educating and training cyber security experts, as well as giving financial support to a Cyber Security Research Institute and security-based start-ups will ensure that the UK remains on the front foot of the cyber-crime issue both now and in the future. There is also a great opportunity here for UK insurers to grow in partnership with the cyber industry and government, and potentially incentivise more information sharing by UK businesses. While companies are reluctant to share the details of how they were compromised, this data can be critical to mitigating the corrosive and systemic risk of cybercrime. Working together in collaboration to tackle this issue gives us a holistic solution to what is a serious and growing problem for UK businesses, and one that should, in turn, provide some lasting, meaningful impact. 10
WHO WE ARE JLT is one of the world s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services over 10,000 people revenues of 1.15bn underlying PBT 170m market capitalisation approx 1.8bn Revenue growth (2015) 6% over115offices in 40 territories More detailed information is available on the Group website http://www.jlt.com/investors/analyst-presentation JARDINE LLOYD THOMPSON GROUP PLC 11
WHAT WE DO JLT GROUP Risk & Insurance 75% Advice and Consultancy Brokerage and Placement Specialist Insurance Products Other Services Employee Benefits 25% Pension Administration Trustee & Corporate and Benefits Consulting Healthcare Programmes and Occupational Rehabilitation Wealth and Investment Management *% represents contribution to 2015 Group revenue Software JARDINE LLOYD THOMPSON GROUP PLC 12
WHERE WE OPERATE JLT has offices in 40 territories with more than 10,000 employees, supported by the JLT International Network, enabling us to offer risk management and employee benefit solutions in over 135 countries. One of the largest networks in the world Owned locations Associates JARDINE LLOYD THOMPSON GROUP PLC 13
OUR MAJOR SHAREHOLDERS AS AT MARCH 2016 % Held Jardine Matheson in the insurance broking business since 1832 Market Cap of over US$38billion Unrivalled access to the Asian Markets Providing certainty of ownership JARDINE LLOYD THOMPSON GROUP PLC 14
OUR MISSION & VALUES Our mission Client First Independent Results Based We act in our clients best interests and bring the best of JLT to all of our clients. We advise our clients without influence or bias and value innovation and creativity. We expect to be judged and rewarded based on our performance. Our values Collaboration Agility Rigour We recognise that our people drive our success. We think fast, move swiftly and act decisively. We work with integrity and discipline and stand up for what we believe in. Our people work together as one JLT to share knowledge, solve problems and deliver the best solutions for our clients. Our entrepreneurial drive gives us the freedom to take on new challenges, think creatively and capture opportunities that others cannot. Our work is thorough and our solutions robust, because it really matters to us to do what is right for our clients, our people, our trading partners and our investors. JARDINE LLOYD THOMPSON GROUP PLC 15
2015 FINANCIAL RESULTS Growth m 2015 2014 Actual Total revenue 1 CRE 3 1,155.1 Organic 4 1,104.1 5% 6% 2% Underlying trading profit 2 187.5 196.8 (5%) (5%) Excl. US investment 5 208.0 199.5 4% 3% Underlying profit margin 2 16.2% 17.8% Excl. US investment 5 18.4% 18.3% Underlying PBT 2 170.1 183.0 (7%) Excl. US investment 5 190.6 185.7 3% Reported PBT 155.0 159.7 (3%) Reported EPS (diluted) 47.0p 47.8p (2%) Underlying EPS (diluted) 51.2p 56.1p (9%) Dividend per share 30.6p 28.9p 6% 1. Total revenue comprises fees, commissions and investment income 2. Underlying results exclude exceptional items 3. CRE = constant rates of exchange are calculated by translating 2015 results at 2014 exchange rates 4. Organic growth is based on total revenue excluding the effect of currency, acquisitions, disposals and investment income 5. Net investment in JLT USA in 2015 was 20.5m (2014: 2.7m) JARDINE LLOYD THOMPSON GROUP PLC 16