Cyber insurance is currently seen as one of the few growth segments in re/insurance, attracting market players perceiving it as profitable business and looking to gather data to base future underwriting on. But profitability may quickly decline as the risks remain unclear, capacity expands and higher risk organisations buy cyber insurance as a way of reducing their risk exposure, warns Darren Wray, CEO of Fifth Step, in an exclusive article with Intelligent Insurer.
A recent note sent out by the ratings agency Fitch will have been of some interest to cyber liability underwriters and, particularly, reinsurers whose concerns the press release specifically addressed. The press release, Insurers' Aggregation Risk on Cyber Claims in Check, explains that: “As insurers continue to improve and refine their understanding of cyber risks, Fitch expects the industry to broaden coverage and accept larger and potentially more threatening exposures.”
A thought leadership piece published a couple of days ago by the self-styled “digitally native news outlet” Quartz (check it out on twitter @qz) got me thinking. The article (or blog if you prefer) reported that cyber-attacks now cost an estimated $400 billion in damages per year.
It was reported on Friday that the UK and US are to carry out "war game" cyber attacks on each other as part of a new joint defence against online criminals.
It is important to understand the mentality of the hacker – the motivation. Why do they hack? To a hacker, breaking into someone’s computer is a fun challenge.
In the first of a mini-series of blogs Is your client’s data safe with you? Fifth Step outlines the evolving cyber threat, the opportunities for insurers and the risks to their businesses as well their clients. First up: the Growing Cyber Threat