Cyber incidents have the potential to strike different, large segments of the global population at the same time and lead to severe financial and even physical damage. Growing geopolitical tensions and reliance on digital technologies are amplifying cyber risks considerably, and the threat of an unprecedented, extreme cyber incident looms large.
While the market for cyber insurance has developed significantly in recent years, the fast-evolving nature of cyber threats complicates insurers’ efforts to quantify accurately extreme cyber risks, limiting the amount of protection they can offer. This, combined with low cyber insurance take-up, means the cyber protection gap remains huge and the most serious of losses still go uninsured.
This webinar explored the challenges associated with insuring extreme cyber risks, especially the constraints on traditional actuarial techniques, and the steps that can boost re/insurers’ risk-absorbing capacity and help create a more resilient and sustainable market for cyber insurance. These include:
- Better modelling and quantification of catastrophic cyber risks.
- Greater collaboration and information sharing with government security agencies and critical infrastructure providers.
- Broader participation by re/insurers and increased risk transfer to capital markets.
- Darren Pain, Director Cyber & Evolving Liability, The Geneva Association (Moderator)
- Simon Heather, Head of Cyber Catastrophe Modelling, Gallagher Re
- Max Perkins, Head of Strategy and Innovation for Cyber & Technology, AXIS Capital