Few sectors outside the specialist IT services industry have such a deep pool of knowledge about this broad and evolving peril. Yet ironically, as an industry, our capabilities in technology, data and analytics often lag behind peer industries such as financial services. From that position, how can reinsurers expect to advise clients on mitigating and managing technological risk?
More investment and greater commitment is needed across the reinsurance industry to enhance the technological backbone and capabilities that underpin reinsurers’ operations. A wide spectrum of capabilities and infrastructure exists across the industry, but in many cases our current efforts fall short. That makes it difficult for reinsurers to advise and assess cyber risks from a credible position.
Understandably in an environment of cost pressures and rising combined ratios, IT spending may seem like an area to realise savings. However, this is a false economy in two ways. First, when implemented and utilised strategically, technology can save money for companies in the long run, as is widely understood. Second, and less well acknowledged, is that poor technology can make reinsurers an unattractive…
