Cyber
Cyber remains a major opportunity for global specialty re/insurers with premiums rocketing in recent years. Awareness of the risks posed by cyber is also rising, with companies taking action to ensure ‘silent’ cyber is not present within business written across several other classes of business. While several re/insurers are actively growing their position in the cyber market, this class has yet to be tested by a major catastrophic loss event. Understanding the risk potential of cyber exposures is vital as the market continues to grow.
ID Comment: Re/insurers should be cautiously optimistic about cyber
Reinsurers are eyeing aggressive cyber growth, but rate rises alone will not be enough to achieve sustainable growth
'Realistic attack scenarios are fundamental to the success of cyber risk models'
The evolution of cyber attack activity as a service economy that enables unskilled actors to purchase attack capabilities and tools is a major challenge for risk modellers
'Centralised intelligence is critical in fight against cyber crime'
The main responsibility for monitoring and investigating cyber crime rests with government and law enforcement, but businesses and their insurers also have a key role to play
Cyber risk aggregation to face intense scrutiny at 1/1 renewals
Concerns over ransomware losses and risk accumulation have sent some cyber reinsurers into retreat mode. However, in a hardening market ripe with opportunity, insurers that truly understand their exposures should find no shortage of willing capacity
Banking sector must develop strategic response to systemic cyber threat
The increased vulnerability of larger banks to single points of failure technologies is resulting in significant losses despite the higher level of defensive measures in place
'Lack of capacity is stunting the crypto risk market's development'
Insuring cryptocurrencies is daunting. But it is also one of the biggest opportunities for the insurance market to innovate and to ensure its relevance in the digital age
Insurers must be more responsive to systemic claims trends to remain relevant
Companies will need pricing discipline, better exposure management and robust reinsurance to cope with the increase in the number and cost of loss events
'Incident response plans are essential to mitigate ransomware threat'
For insurers, it is imperative to check if the threat actor is on any international sanctions lists
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