Sterling Knight COO Blog

Cyber Security: How safe are you?

Cyber- is a prefix derived from “Cybernetic”. It is commonly used synonymous with e- or virtual, referring to “electronic” or computer related counterparts of a pre-existing product or service.

In the first week of the New Year and Singapore alone has faced 02 major breaches in cyber security.

On the 05 Jan 2012, hackers have broken into the National University of Singapore’s website and made staff usernames, domain information and hashed passwords public. The institution is Singapore’s “flagship university” and has more than 36,000 students from 100 countries, 16 campuses and thousands of staff. The hacker from an online group known as Team Intra used a SQL vulnerability to grab a database containing the information. The hackers alleged that the attack was not targeted and they had no intention of harm. It was simply a demonstration of how weak the security is. This was spurred on by an error message generated by probes of the website stating: “If you're trying to use the SQL error message to dig for juicy information, get lost.” SC Magazine informed the university about the hack. All affected passwords has been reset.¹

The following day, 06 Jan 2012, DBS/POSB announced a security breach, where approximately SGD 500,000 has been stolen from 400 customers over the last 02 days.² The average amount withdrawn is believed to be about SGD 1,000. DBS’s initial investigation identified that 02 DBS ATM in Bugis street were compromised over 03 days late November 2011 and informs that investigations are ongoing. DBS believed that the situation has been contained. A replacement card will be issued on the spot to any customer who believes their ATM or credit card has been compromised. All customers will be fully compensated for any false transactions within 24 hours.³

So how does such news affect one’s business or reputation? With regards to the recent major DBS security breach, The Straits Times RazorTV took to the streets to find out the public’s thoughts and views. http://www.razor.tv/site/servlet/segment/main/news/72748.html

A research conducted by computer security expert, McAfee, at the end of 2009, placed Singapore-registered websites which end with “.sg”, as the 10^th riskiest internet domains in the world. Surfing of these websites, according to McAfee, had a 9.1% chance of contracting some form of malware, placing the dangers Singapore-registered websites at a moderate level. McAfee highlighted Chinese pharmacy spam sites in Singapore as the main cause of risk.⁴

To read more on McAfee’s report on Mapping the Mal Web: http://us.mcafee.com/en-us/local/docs/Mapping_Mal_Web.pdf

As the world and business today progressively becomes more and more reliant on computers and the world wide web to drive growth and expansion, what measures have your company put in place to ensure its cyber security?

 References:

¹ http://www.scmagazine.com.au/News/285906,singapore-university-hacked.aspx

² http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_752603.html

³ http://www.asiaone.com/News/Latest+News/Singapore/Story/A1Story20120105-320153.html

⁴ http://singaporeaspirations.blogspot.com/2009/12/on-internet-security-in-singapore.html

New Work Injury Compensation Bill Increases Statutory Liability of Employers

The Ministry of Manpower recently published details of the Work Injury Compensation (Amendment) Bill 2011, which is scheduled to come into effect 1st July 2012. I summarize the main points we feel are relevant to employers in Singapore and their insurers. I also comment on best practice for insurance arrangements, given the new law.

Salient points of the Bill which will impact employers:

1. Statutory no fault limits under the Work Injury Compensation Act will be increased to SGD170,000 for death and SGD280,000 for permanent incapacity. The current limits are SGD140,000 for death and SGD180,000 for permanent incapacity. This is to account for wage inflation since the last amendment in 2008. Also, in a similar vein, the medical expenses limit will be increased to SGD30,000 (currently SGD25,000).

2. Scope of Work Injury Compensation for occupational diseases extended. Specifically, work related injuries as a result of exposure to chemical or biological agents will automatically be compensable, including new diseases. Currently, only diseases listed in the Second Schedule of the Act (e.g. noise induced deafness) would be compensable and a new deadly flu strain, would not be compensable unless included in the Schedule. Under the new bill, the employee must still prove that he was more likely than not exposed at work, and not as a result of community spread.

3. Liability of Work Related Fights reduced. If the injury is due to a fight between employees at work (Ministry of Manpower receives about 20 such cases a year), this would not be compensable if the worker was an active party to the fight.

Salient points which will impact insurers:

1. In situations where there are multiple policies involved, the employer's Work Injury Compensation insurer cannot deny liability on the basis of the existence of other insurance covering the employee.

2. An exception to this is that third parties will be allowed to pay compensation as long as they convey in writing to the Ministry of Manpower the intent to pay compensation on behalf of the employer's insurer, before the notice of assessment is issued.

Best practice to ensure compliance with the new bill:

1. Ensure that appropriate Work Injury Compensation Insurance Act Insurance is taken up, and declare the full payroll of all employees,  including wages, bonuses, annual wage supplements, food and housing allowances, and overtime (but excluding travelling allowances and CPF contributions) to the insurers.

2. Use a dedicated Work Injury Compensation Insurance policy issued by a Singapore licensed insurance company. Do not use Personal Accident Insurance to cover Work Injury Compensation liability as personal accident policies do not cover occupational diseases. The New Bill's extension to new occupational diseases makes Personal Accident policies, which covers death or permanent major injury (only) due to accident totally inappropriate for covering Work Injury Compensation Liability. 

The full speech on the amendment bill delivered in the Singapore Parliament on 21st November 2011 is available on the Ministry of Manpower's website.

Ministry of Manpower Announces Increased Number of Fall from Height Accidents

A recent press release from the Ministry of Manpower cites an increased number of accidents (13 as at June 2011) resulting from falls from heights. Warning were issued to 150 contractors on this issue.

Insurers will face hefty flood of claims from Thailand

Our partner, William Gallagher Associates, report severe losses in Thailand, exceeding USD3bn.

Ministry of Manpower's September 2011 Guide to Workplace Safety and Health – New Standards to be Aware Of

The Guide to Workplace Safety and Health (WSH) by Singapore’s Ministry of Manpower provides information on the extended coverage of the Workplace Safety and Health Act 2006 (the Act) from Phase 2, i.e. medium risk workplaces, to Phase 3, i.e. all workplaces including offices and all stakeholders will be covered by this new subsidiary legislation of the Act as of September 2011. The key principle of the Act is as follows:

“Each and every stakeholder has the duty to take, so far as is reasonably practicable, such measures as are necessary to ensure safety and health for any person who may be
affected by his undertaking in the workplace.” 

This will undoubtedly have significant impacts on business owners, managers, supervisors and rank-and-file employees alike as they have to take reasonable measures to find out and control risks at the workplace through safe work methods. Thus, it is pertinent that we prepare for this new subsidiary legislation come September.

Some details of this new subsidiary legislation are further elaborated in a report by Liberty International Underwriters, which lays out its key principles and practical implications.

• Download Liberty International - Workplace Safety & Health Act (Sept 2011)

Under the Act, employers and various other stakeholders are responsible for mitigating risks at work by establishing adequate safety management systems, failing which could result in strict penalties. In addition to the existing basic protection and compensation for employees as stated in the Work Injury Compensation Act 2008, one of the highlights of the new subsidiary legislation is the need for a Risk Management programme that specifically targets risks at one’s workplace so that business owners can minimize and control them. Businesses can benefit from a proactive attitude towards risk management, as employers can keep employees safe, ensure smooth business operations and increase productivity in the long run. The efficiency of a firm's Risk Management Approach can be measured against several benchmarks – e.g. the Management’s Commitment to ensure safety responsibilities are made aware to employees; establishing a Risk Assessment team within the organization to identify, evaluate, control and keep records of workplace risks; ensuring that all work-related incidents are covered by work injury compensation insurance and all incidents are reported within the required timeline and acted upon as stipulated by the law.

For additional information on how the new subsidiary legislation affect your business, as well as the measures that should be implemented to prevent injuries from non-manual work hazards, we recommend reviewing the WSH Guide at the following link:  

https://eu1.salesforce.com/sfc/p/200000009E7d.q1Maj74fqcjLuWy5yMWh1ZBaP4=.

 

Podcast: Singapore Employee Benefits

We collaborated with one of our US partners, Woodruff Sawyer & Company to develop this podcast, which was recently published on the company's Employee Benefits blog. In this podcast, our COO, Lawrence gives an overview of the local business environment, key issues that branch operations of US companies in Singapore need to address, as well as the local statutory and customary employee benefit practices. 

Check out the podcast at the following link: http://www.wsandco.com/about-us/news-and-events/podcasts/employee-benefits/benefits-in-Singapore

Sterling Knight Achieves Chartered Status

 

 

I'm proud to announce that the Chartered Insurance Institute has awarded "Chartered Insurance Broker" status to our firm, Sterling Knight. For more information see our press release.

Minister of Manpower: Business Chambers Can Help Increase Productivity of Small and Medium Sized Enterprises

The Minister of Manpower recently gave an interesting speech on how SME's can leverage collaboration and industry networks to boost international business, The full speech is available on the Ministry of Manpower's website.

Software Companies lost USD233m in Unlicensed Software in Singapore

According to a local press article, the Business Software Alliance measured software piracy at 34% in Singapore (4th lowest in Asia), even though the percentage was reduced by 1% in 2010.

AUM hits SGD1.4 trillion by Fund Managers in Singapore

Funds under management by fund managers in Singapore grew at an annual rate of 13% and hit a new all time high of SGD1.4 trillion (approx. USD1.14 trillion) according to the local press. I believe that the stability of Singapore and the increasing affluence of nationals emerging markets such as China and India continue to fuel growth of the asset management industry in Singapore.