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A paper worth reading. Munich Re presented recently on the state of the insurance market echoing in part sentiments raised by Lloyds of London in their Q1 2024 Market update.
What is of note is cyber insurance; possibly highlighting the road ahead for the insurance industry Gerry Kennedy. The presentation identifies a reduction in the volume of cyber insurance (YTD July 2024), a concerningly low market penetration, the successful introduction of war exclusions and challenges with modelling catastrophic risk.
With cyberattack frequency, complexity and severity increasing, low market penetration and war exclusion clauses, how does this bode for the insured. Does this increase the protection gap? In a recent report by Marsh McLennan and Zurich Insurance Group highlighted an economic cyber risk protection gap of $900bn. A gap that sites on the balance sheets of the public and private sector, one that cannot be covered by insurers and should not be covered by governments if the 2008/ 09 financial crisis is anything to go by.
https://lnkd.in/eFxGU-jW
A growing market based on war exclusions, poor modelling and low penetration, when cyber is a nation state weapon, may not bode well for the insured. Insurers should be considering how they develop solutions to enable cybersecurity risk management in line with cyber regulation, enabling the transfer of risk ‘Left of Bang’.
@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan
Veritas GRC Munich Re Marsh McLennan Zurich Insurance
#cybersecurity #cyberriskmanagement #cyberregulation #cyberinsurance
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