Cyber risk is a growing concern for Directors and Officers (D&O) liability re/insurers as business models continue to increasingly integrate and revolve around technology, according to a new report published by Airmic with support from Marsh and AIG.
“The risk of cyber-attack is a constantly evolving threat, and, for most companies there is a recognition that it is not a case of ‘if’ but ‘when’ their organisation will be impacted,” the report stated.
It noted that several high-profile shareholder class actions have already resulted from cyber incidents, which has put companies’ D&O policies under the spotlight.
The actions of the board and senior management may come under scrutiny following a cyber security breach, particularly if they have failed to implement appropriate reporting, system or cyber security, and data protection controls.
In response, Airmic urged boards to “take a proactive approach to their insurance arrangements, ensuring…
