The growing threat—and opportunity—of insuring for cyber crime

21-12-2021

The growing threat—and opportunity—of insuring for cyber crime

Michael Dion, vice president and senior analyst, Moody's

Michael Dion of Moody’s joins Intelligent Insurer to discuss the growth of the cyber insurance market and where the demand lies.

In May 2021, a cyberware attack purportedly originating out of eastern Europe shut down the Colonial Pipeline company, freezing its systems and disrupting fuel supplies for a week. The stalemate was resolved only when the company paid a ransom of $4.4 million (although later reports stated the US Department of Justice managed to recover some part of it).

It is against this backdrop that Moody’s has released a report, “Proliferation of Cyberattacks Prompts Re-Evaluation of Cyber Insurance Risk”. To talk about it, Michael Dion, vice president and senior analyst, joined Intelligent Insurer’s Re/insurance Lounge.

“Cyber crime has been a hot topic over the last couple of years,” said Dion, and it is an area that is set to grow. As Moody’s writes in its report: “Cyber crime will cost the global economy an estimated $6 trillion in 2021 according to Cybersecurity Ventures, and will grow at an estimated average 15 percent annual rate over the next five years.”


Moody's, COVID-19, Technology, Cyber, Cyber Risk, Insurance, Reinsurance, Michael Dion, North America

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