How does the changing nature of geopolitical threats, and nation state cyber attacks, radically change the role of national terrorism insurance

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How does the changing nature of geopolitical threats, and nation state cyber attacks, radically change the role of national terrorism insurance provided by carriers such as Pool Re. The UK insurer owned specialist insurer against terrorism believes it could, making it obsolete or irrelevant. The CEO, Tom Clementi, indicates the challenges head for terrorism risk modelling as Pool Re looks set to evaluate its business model in light of easy to model attacks and complex threats. Cyber is a complex threat and the definition of what makes a nation state cyber attack and where does it originate is almost impossible to clarify. The grey area between nation state threat actor, proxy and cyber criminal is hard to substantiate.Quote from the FT: “It’s often quite difficult to understand who is behind an attack,” Clementi said. “If you took an extreme view and said that any act with any involvement from a state was to be excluded from the scheme, Pool Re could quickly become redundant,” he added. “You could narrow the scheme to such an extent as to make us obsolete or irrelevant.”What could the implications be for a cyber insurance backstop? If as is stated in the enclosed article cyber is a risk that the insurance industry is unprepared to handle systemic risks from state-backed cyber groups.As insurers get to grips with cyber as a national security threat, it becomes more incumbent on the board to manage cyber risk.@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan Rachel V. Rose, JD, MBAVeritas GRC#cybersecurity #cyberriskmanagement #nationalsecurity #nationalsecurity #geopoliticalsecurity

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