Give insurers access to wealth of cyber attack data, urges Insurance Europe

Cyber insurance could make leaps and bounds in Europe if policymakers gave insurers access to anonymised cyber-attack data, industry body Insurance Europe (IE) has said.

Andreas Brandstetter, the body’s president and CEO and chairman of UNIQA Insurance Group, said the move would help insurers refine the protection they offer as cyber-attacks increase in frequency and severity. He said a major barrier to the development of the cyber insurance market was the lack of data on cyber risks.

But relatively new legislation that means companies have to report cyber incidents to the relevant authorities have created a wealth of useful data collected through channels such as GDPR and the NIS Directive.

“Policymakers could help insurers to better protect society by providing them with access to anonymised information about cyber-attacks,” he said.

Speaking at the 11th International Insurance Conference in Bucharest, Brandstetter highlighted insurers’ efforts to support sustainability with an estimated €50 billion in sustainable investments between 2018 and 2020.

However, he urged policymakers to do more to help insurers build on this with legislative changes. He called for action to ensure prudential capital requirements reflect the real risks insurers face; clear taxonomy that avoids greenwashing; and conduct rules that give consumers real choice over environmental, social and governance (ESG) and non-ESG investment products.

Brandstetter said action was also needed to support the creation of suitable, sustainable investment opportunities as demand for sustainable and long-term investment is much higher than the supply of assets. This lack of supply was clear during recent green energy and infrastructure projects that were oversubscribed, Insurance Europe said.

Closing the pensions savings gap was another issue Brandstetter highlighted as a “key priority”. He said insurers could play a key role but Solvency II would need to be improved so capital requirements reflect the real risks insurers face. Such improvement would enable insurers to offer the best possible returns to customers with long-term insurance savings products and, in turn, could help to address the growing pension savings gap by encouraging more people to save in private pension products.

“Pension provision is and will remain under the remit of national governments. However, their solvency regulation falls under the remit of EU co-legislators, so it is encouraging to see that they recognise the potential of personal pensions as a way to stimulate long-term savings,” he said.

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