Pro Global’s Richard Robertson on how brokers can work with policyholders and insurers to bring more certainty to cyber insurance.
The law of unintended consequences dictates that actions always have effects that are unanticipated or unintended. And we are currently seeing the unintended consequences of an exponentially interconnected world play out in insurance claims departments and courtrooms across the globe.
The triple threat of frequency, severity and systemicity that cyber risk presents makes cyber underwriting one of the biggest challenges for insurers to grapple with right now.
Insurers – who with the best will in the world are rarely at the cutting edge of technology when it comes to their own operational systems – are faced with the need to keep pace with the evolving nature of cyber risk.
But the increasing sophistication of cyber criminals, frequency of major cyber attacks and the greater regulatory emphasis on data protection can make it challenging for insurers to really get a handle on their underwriting exposure when pricing cyber risks.
Don’t rush
Certainly this is a growth market – a rare thing in insurance. The…
