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Member of the Management Board of Munich Re, Stefan Golling, discusses the direction and future of Reinsurance, including cyber reinsurance. It follows a recently published paper by Swiss Re and a renewed focus on the SME market to sell cyber insurance.
https://lnkd.in/eyDfvyiR
Stefan raises several important points about cybersecurity. One being the ability for the insured and insurer to model cyber risk. Modelling cyber risk is still an issue for the cyber insurance industry. ‘one that significantly impacts the protection gap’ (My Words ). A protection gap that will only get wider for SMEs, as they are least likely to be able to manage cyber risk. ‘As it stands today, the insurance industry will not move forward until it moves away from its fixation with ‘Right of Bang’ modelling'(my words).
From 17m:58s, how do you make cyber a competitive business? One interesting point Stefan makes is that the industry needs to stop stealing each other’s clients. The industry needs to stop competing for the 5% of clients and focus on delivering risk transfer solutions. There needs to be a coordinated approach by the industry that focuses on the delivery of risk transfer solutions.
One has explained many times that to address the appropriate allocation of capital and manage risk transfer, the cyber insurance industry needs to change its approach to risk transfer. Cyber regulation, such as EU NIS 2, DORA, the CER, and CRA, presents opportunities for the Insurance industry, ‘they shift risk ‘Left of Bang’. The insurance industry needs to work out how to capitalise upon them.
Here lies the challenge. One that we have discussed many times.
@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan Stefan Golling
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