A coalition of insurers, brokers and risk managers have called for public and private cooperation to find solutions to tackle cyber risks
This coalition which includes Allianz Global Corporate Specialty (AGCS), AXA XL, HDI Global, Lloyd’s, Munich Re, Howden and Marsh reiterated their call as part of a new FERMA report on Cyber Resilience.
In addition, the report calls for more data sharing on cyber claims with assistance from public authorities.
Similarly, corporates need to improve identification and prevention by investing in quantification, benchmarking and crisis management & protocols.
Scenario analysis can play a role in helping all stakeholders to stress test the extent to which current cyber insurance protection needs are met.
The nature of the cyber insurance market has changed, the report notes, with two new major points of discussion emerging: cyber war and the systemic nature of cyber risks. It is these two factors that have contributed to the challenging landscape for insurance buyers.
Reducing this uncertainty, the report notes, will require underwriters to continue their work on providing a standard baseline questionnaire. Likewise, there needs to be a transitional coverage offering for SMEs, which have not adopted cybersecurity insurance.