[INSURERS] 'London insurers launch millennium bug risk index
12:53 p.m. May 08, 1998 Eastern
By Nicholas Moss
LONDON, May 8 (Reuters) - London market insurance companies have launched
an index designed to help measure the risks associated with the millennium
computer bug.
The LY2K index, which assesses the exposure of various industries in different
parts of the world, reflects growing concern about the millennium bug within the
insurance community, London market representatives told Reuters.
''The index will be of great assistance to those underwriters assessing business that
will be impacted by computers failing to handle millennium date changes,'' the
London International Insurance and Reinsurance Market Association (LIRMA)
said in a statement.
...
The prototype LY2K index, developed in conjunction with the U.S. IT consultancy
Gartner Group, determines whether areas and industrial sectors are at low,
medium, or higher than average risk.
...
The model uses factors such as national awareness to the 2000 problem and a
country's efforts to tackle it, to calculate a number from one to 10 as an
approximate guide to the typical risk level.
The sectors covered include financial services, process manufacturing, utilities and
public administration.
Matthew Petzold, managing director of reinsurance group Copenhagen Re and
deputy chairman of LIRMA's Year 2000 sub-committee, said it wants additional
members to fund the main project and ongoing research necessary to update the
index.
''This is an urgent project which we need to get going,'' said Petzold.
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