Cyber is an opportunity – if insurers can add value

Insurers should see cyber risk as an opportunity for growth – if the industry can better understand and price this risk.

That was one of the key findings of a panel discussion called Hacking and Cracking Cyber Risk at the Intelligent InsurTECH Europe conference, which took place in London today (November 16, 2016), under Chatham House rules.

The panel of experts, chaired by Matt Cullen, head of strategy at the Association of British Insurers and which included a panel of senior executives from Allianz, Aspen and JLT Specialty, agreed that the industry was still struggling to grasp and define cyber risk in many senses.

They agreed that cyber risk evolved massively in recent years and it is still not always well understood by the industry. Some panellists argued a gap still exists between the true risk and the products being developed to cover it.

But they also agreed that this sector could represent a big opportunity for insurers if they can also develop products that help clients mitigate the risk and which would operate hand in hand with traditional insurance. “This represents a huge opportunity for insurers if they can add value to their customers,” one panellist said.

They also agreed that regulatory changes in the EU requiring companies to disclose data breaches could represent a game changer for the industry – following similar rules that have been introduced in the US.