Risk & Insurance’s Post

Two of the world’s biggest insurance players, Zurich Insurance and Marsh McLennan, just released a new report highlighting how cyber attacks are now as big a threat as terrorism and flooding, and, as the Financial Times explains, the private sector can’t handle these potential risks alone. These industry giants are pushing for public-private partnerships to share the financial blow from catastrophic cyber events, much like the flood and terrorism schemes we already have, but for the digital age. Last year, Lloyd's estimated that a major attack could cost the world economy $3.5 trillion, and that it was “too substantial a risk for one sector to face alone”. The cyber insurance market took in about $14 billion in premiums last year. Munich Re expects the figure to reach $29 billion by 2027. As cyber risks escalate, state-backed support might be the only way to keep premiums from skyrocketing and ensure that critical infrastructure remains in place. Because when a single cyber attack could slam into the global economy with that eye-popping scale of losses, we’re in uncharted waters. “At some point cyber events can potentially become large enough to move outside of the insurance industry and become societal,” said Thomas Reagan, global cyber practice leader at Marsh McLennan.  Read the full story: https://lnkd.in/gtRYg73U #insurance #cyber #hacking #risk #cyberattacks #insuranceindustry #premiums #economy

Cyber attacks now pose a big risk on the scale of terrorism and flooding, according to two of the world’s biggest insurance groups who are calling for state support to help the industry to absorb losses. Insurer Zurich and Marsh McLennan, the world’s biggest insurance broker, say in a new report that cyber threats are “outpacing the ability of traditional insurance and risk management approaches to fully mitigate them”.  #insurance #cyberinsurance #zurich #marshmclennan #marketfailure

We are pleased to share a second briefing prepared by Guy Carpenter’s #Cyber Center of Excellence titled, “A Closer Look: Unveiling the Global Impact of #CrowdStrike Event.” Read the detailed analysis here. #risk #insurance #reinsurance

The cyber insurance market is shifting as rates decline globally, presenting both challenges and opportunities for insurers and policyholders. Industry leaders like Jeff Gonlin from Emergence Insurance, Trent N. of Coalition, Inc.., and Lindsey Nelson of CFC discuss how education, innovation, and risk management are key to navigating this evolving landscape. https://hubs.la/Q02Y08YZ0 #CyberInsurance #InsuranceMarket #Innovation #RiskManagement

The cyber insurance market is shifting as rates decline globally, presenting both challenges and opportunities for insurers and policyholders. Industry leaders like Jeff Gonlin from Emergence Insurance, Trent N. of Coalition, Inc.., and Lindsey Nelson of CFC discuss how education, innovation, and risk management are key to navigating this evolving landscape. https://hubs.la/Q02SgRTH0 #CyberInsurance #InsuranceMarket #Innovation #RiskManagement

Few insurance markets have experienced as much upheaval in the last few years as cyber... #cyber #insurance #risk #market https://lnkd.in/e_8vpC5b

U.S. cyber insurance line has seen strong direct underwriting profits for two years in a row, according to recent data. However, written premium volume has stalled amid renewed pricing pressure. This begs the question: with pricing pressure, careful selection in the underwriting process and tightening of policy language, will we continue to see investment to expand growth for Cyber Insurers? #cyberinsurance #underwriting #investments

Things don’t happen……..until they do happen! 2024 was being a good year for cyber insurance with a soft market and plenty of capacity available. Recently, a #CISO from a large electricity and gas #utility shared with me that they didn’t see the urgency for Cyber Risk Quantification and Management because they just were able to procure protection with increased limits and reduced premiums. Brace for impact for 2025! Burns & Wilcox $1bn lower end estimation of insured loss from global the recent IT outage in the Financial Times article below may be too optimistic. Just Delta Air Lines has cancelled more than 5,000 flights and it seems to be under federal investigation by the U.S. Department of Transportation. Stock markets, hospitals, government offices impacted, ……. We are seeing just the tip of the iceberg. Insured losses, full impact through the entire insurance and reinsurance industry including recent cyber CAT bonds will be known and understood in the months (or years) to come. This event will test event definitions, triggers and rest of the T&C for all the products, and we will have an additional data point on cyber risk accumulation. 50% of cyber risk is still transferred to the reinsurance market. If that market suffers, the primary market will see the impact immediately. Do not wait to be in the news. Certainly not a cyber attack but a cyber risk/exposure. Understand now your cyber risk. Understand now your main exposures. Understand now how to mitigate your cyber risk. Understand now if you can afford the cyber risk that your company's balance sheet carries. Be prepared to buy affordable protection in a hard market, not just when the wind blows your way. #CyberRisk #CyberRiskManagement #CyberInsurance #CyberRiskQuantification #CRQM

Marsh Insurance: Volume of Cyber-Insurance Claims Reaches New Heights Marsh Insurance reports a surge in cyber-insurance claims across the US and Canada compared to previous years, with healthcare organizations being the primary claimants. This trend underscores the escalating cyber threats facing organizations and the increasing reliance on insurance as a risk mitigation tool.