arda savasciogullari / Shutterstock.com
Cyber re/insurance can be opened up to ILS investors but the underlying risks must be properly understood before they can be modelled, says Sciemus CEO Rick Welsh.
Minimising and mitigating cyber attacks by criminal and terrorist groups seeking to steal, disrupt and damage is one of the most serious challenges faced by governments, businesses and the re/insurance industry.
According to a UK government report published in May 2016, two-thirds of large businesses experienced some sort of cyber breach or attack during the previous 12 months. However, the threat of a large-scale attack to critical national infrastructure poses a particular threat to governments and the people they are charged to protect, from accessing security data to causing loss of life through an attack on a power plant, public utility, hospital or airport.
Frequent attempts to hack into the UK’s national grid are understood to have been thwarted, but in Ukraine thousands of people were left without electricity supply for a few hours in the middle of winter when hackers were more successful. According to a cyber espionage expert quoted in the Financial Times, John Hultquist, this was the first example of a cyber attack leading to a power shutdown.
This content is only available to readers with a paid subscription.
For access to features, regular news, expert comment and our print publications – subscribe here.
If you have a subscription to Intelligent Insurer, Login here.
Intelligent Insurer is offering a two week free trial – register and select “Free Trial” to begin access to the full Intelligent Insurer archive and read the latest news and features.
News stories up to three days old on Intelligent Insurer are freely accessible. To access the archive you will need a paid subscription.
To access in-house feature articles and expert comment you will need to take out a paid subscription. A free trial will give you access to all website content for two weeks.
cyber, risk, re/insurance, insurance, risks, London, insurers, Welsh, Sciemus, modelled, alternative