The Insurance industry is waking up to the extent and ramifications of cyber risks and the potential they have for unintentional exposure by covering situations they did not understand.
I came across a great new tech startup recently who are attempting to help insurers and brokers to quantify risks and make underwriting in this area much more fact based.
They are worth a look.
The UK’s financial regulator has told insurers to conduct stress tests to measure their exposure to cyber attacks. Cyber insurance is one of the fastest growing parts of the insurance industry, with Allianz estimating it could be worth $20bn per year globally by 2025. Insurers say that recent attacks, such as the one using WannaCry ransomware and last week’s assault on Ukraine, have increased demand for cyber coverage. However, both regulators and insurers are worried about the financial impact of a large-scale attack that hits many businesses at once. Insurers complain that it is difficult to find enough data to assess accurately the scale of cyber risks.