Cyber insurance is one of the few new areas of insurance to emerge in the last few years, leading to more than $2bn in premiums being written last year for cyber specific policies.
At the same time, the increased awareness of potential for cyber losses occurring in other lines of business within property and casualty where these have not been excluded, or create physical losses is causing concern amongst many insurers, regulators and Lloyd’s itself.
Whilst there are hundreds of companies providing cyber protection to corporate organisations, specific applications for insurers to assess, manage, control and price for cyber are still fairly limited.
On March 20, London, Instech London brought together 150+ representatives from both insurance and cyber security sectors to discuss the emerging field of cyber insurance and the role for insurance in the ever-growing cybercrime space. The event welcomed a line-up of outstanding speakers from a range of companies and experts across both of the industries including Advisen Ltd, Telstra, Verisk Analytics, TigerRisk Partners and our own Chief Technology Officer, Shadi Razak . The credits were done by Paolo Cuomo, Robin Merttens & Matthew Grant.
The event also welcomed Oliver Ralph (@Oliver_Ralph), the FT’s Insurance Correspondent. Oliver is keeping a close watch on the evolving insurtech space (see this detailed article from Saturday on FT.com) and filmed a number of Instech community members commenting on how insurance will change in the coming 20 years. Shadi Razak gave a perspective on how digitalisation of our environments and businesses will change the way insurers and underwriters operate and evaluate risks. The area of cyber risks are growing exponentially and the insurance industry has a lot to learn in terms of data assessment, understanding existing and hidden risks associated with data circulation in the interconnected world. For example, commercialisation of autonomous and self-driving cars will not only accumulate a lot of sensitive data around connected vehicles, but will create a qualitatively new area of risks and threats yet to be well-understood and intertwined in underwriting processes.
This short video shows some answers to the question about how insurance may be changing in the medium term
How will insurance change in the next 20 years?
Contact us if you want to quantify your cyber risk profile and assess exposure to risks coming not only from external threats, but also from 2nd and 3rd tier vendors of your organisation.