Cyber Threats and Insurance: The Two Sides of the Coin
Technology innovation is increasing cyber risk and changing the nature of cyber-attacks. Major factors are driving this trend, including digitization, the fast pace of innovation, technology complexity, the growing velocity and volume of data being shared, and attack sophistication.
In an environment where cyber threats are less predictable, insurers have two major roles to take. The first one is the same as all other industries: protect their business operations. The second one consists in helping clients mitigate the risks and, more specifically, the financial impact of cyber-attacks.
This report provides an introduction to the cyber-threat topic to insurers. First, it looks at the recent past to understand better the frequency and the nature of cyber threats companies face globally. The report then defines cyber threats and categorizes them. It also provides a view on the regional regulations in place in relation to cyber. With cyber being a topic of two aspects and taking into consideration the very nature of the insurance business model, we dedicate a section to the challenges posed by cyber risks, including internal business protection against cyber-attacks, but also to the opportunities cyber risks represent for insurers.