Global: New era of cyber risks calls for a novel approach to insurance
Source: Middle East Insurance Review | Dec 2022
The cyber risk landscape is rapidly evolving, with cyber attacks increasing in severity and sophistication. Hackers now use triple extortion techniques and ransomware-as-a-service has lowered entry barriers for cybercriminals. In addition, increased digitalisation of critical infrastructure has made it more vulnerable to cyber threats – with the potential for systemic fallout should a cyberattack interrupt the provision of clean water, energy or internet services for an extended period of time. This new risk era requires a different approach to cyber insurance, a new Swiss Re Institute study has suggested.
It is critical to improve the understanding of the risk, as this will help mitigate overall exposures and make society more resilient to cyberattacks with devastating and potentially systemic consequences. The human and networked nature of cyber means the risk will continually evolve and require a coordinated response. M