Call us now:
A very interesting and useful perspective of the cyber insurance market from Guy Carpenter. Examining the opportunities and threats for the cyber insurance industry, as a global product line. The modelling used in the report relies upon loss data and loss predictions based on traditional probability models such as 1:50 and 1:200 year events. One is not being critical of this, as it is what the insurance industry is familiar and incident data is currently what the industry has.
We know from frequency analysis that cyber events are more common and a catastrophic event more likely. We know that the effects of a catastrophic event will be worst than predicted, for example a single attack on Equifax cost the company over $1 billion, and the recent Merck judgement could cost the insurance industry $1.4 billion, accepting that it does not reflective of recent insurance policies.
The report presents a useful current and predicted view of cyber insurance capacity. Raising questions of capital, does the cyber insurance and reinsurance industry have the capital to write premiums? I look to previous work done by Gerry Kennedy on the effects of cyber-attacks on the U.S auto sector, and remind myself of the size of the reinsurance market.(https://lnkd.in/e7jB9f3j.)
One suspects that a catastrophic attack on a cloud provider or power generator Ted Dziekanowski won’t come cheap.
#cybersecurity #cyberriskmanagement #cyberattack #cyberinsurance
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7070676418954715136