In a digitalised global economy, insurers contribute significantly when protecting businesses against the cyber risks they face. The insurers through their expertise, strong collaborative networks and clear focus on data analytics, risk quantification and accumulation modelling, have a deep understanding of the threat landscape and a discernment of the limits of insurability.
A new report Cyber Insurance: Risks and Trends 2024 published by Munich Re in April 2024 said the cyber insurance market has further matured and looking to the future, the focus remains to meet increasing demand and manage dynamic risk exposures, while focussing on the sustainable insurability of cyber risks and market functionality.
Munich Re CEO reinsurance Thomas Blunck said, “There is still too high a proportion of uninsured cyber risks. According to our current global cyber survey, 87% of managers surveyed state that their company is not adequately protected against cyber risks. Risk awareness and demand will continue to rise, also against the backdrop of a rapidly growing threat from aggressive cyber criminals, recent technologies and dependencies, as well as geopolitical crises.”
Cyber risk continues to increase, driven by rapid technological advances such as (generative) AI or cloud technology. Global industries are increasingly dependent on IT, IoT, operational technology and digital services, such as cloud computing, each of which represent a critical part of the supply chain for many risk owners.
The advancing sophistication of cyber criminals and the tense geopolitical situation also shape the cyber threat landscape and pose a threat to global societies and democracies.
The report said even though today’s value chains are largely dependent on digital assets, the level of protection appears to remain inadequate. According to the Munich Re Cyber Risk and Insurance Survey, 87% of global decision makers say their company is currently not adequately protected against cyber attacks. Cyber insurance penetration and associated resilience need to be further increased.
Source: asiainsurancereview.com