Call us now:
Maybe not a reverting read but an important one considering the liquidity positions of 54 UK insurers, required under Solvency II, that includes cyber (page 19). While based on scenarios set in 2022, it identifies challenges that insurers face, and highlight gaps in cyberinsurance.
The main points are that the 2022 scenarios (that don’t reflect recent recent Davos predictions) highlight that using the scenarios of a cloud failure, data theft and systemic ransomware UK insurers remain solvent. With average coverage ratios of 135%, 143% and 147% after applying the scenarios, the assessors believe that the losses are overestimated. This is reassuring?
The report outlines that insurers need to improve cyber loss prediction, and while an indicator of loss, the model does not reflect the fast paced changes of cyber, or changes in probability of cyber threats.
One assumes the ransomware figures were based on historical loss and wonders if they assessed an attack on electricity supply? That would be catastrophic and a catastrophic event was predicted at Davos in 2023, as a 2 year event. CNI risk is one that EU regulators recognize as a significant and now regulated, and would open up a conversation on the losses associated with a CNI cyber attack, and non affirmative losses and change the figures somewhat.
Over the past 12 months the insurers and reinsurers have recognised the need to address liquidity for cyberinsurance. As we have seen with conversations on using governments to support underwriting cyber, increased premiums, reduced coverage and exclusion clauses and leader in the industry saying that cyber in uninsurable.
Ted Dziekanowski Gerry Kennedy
#cyberinsurance #cyberriskmanagement #cybersecurity #theaugustagroup
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