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Cyber insurance is one of the fastest growing business segments, but poses a unique set of challenges, as proved by the recent global ‘WannaCry’ cyber attack which hit more than 150 countries and affected computers in factories and hospitals. Intelligent Insurer explores four threats making insurers rethink their coverages and general approach to cyber.
With advances in technology there is greater interdependence among different infrastructure networks, which is increasing the scope for systemic failures, according to Marsh’s Global Risks Report 2017.
This creates greater challenges for insurers regarding risk aggregation, such as where a single point of failure can set a chain of events going that can adversely impact balance sheets and portfolios, suggests Matt Webb, global group head of cyber at Hiscox.
This can be seen in the oft-cited denial of services (DoS) attack on Dyn, an internet performance management company which offers domain registration and other services, in October 2016.
Cyber, Cyber attacks, Marsh, Beazley, Hisco, Pool Re, Lloyd's, North America, Europe