Cyber risk is already an embedded feature of the global risk landscape, not only as a privacy/network liability, but also as a peril affecting traditional insurance lines. As such, insurance has the potential to greatly enhance cyber risk management and resilience for a wide range of organizations and individuals who are exposed to its impacts. Nevertheless, the likelihood and impact of severe events remain subject to much uncertainty and the pace of insurance innovation should be linked to the rate at which this uncertainty can be reduced (1).
Data will be a key factor for enabling further analysis and the development of models to enhance the understanding of cyber risk. The systemic, intangible and constantly evolving nature of cyber threats presents significant challenges for gathering the data required to achieve accurate quantification of the risk for insurance portfolios that could trigger a wide range of economic losses on a global basis.
1. Lloyd’s: Emerging Risk Report, Business Blackout, The Insurance Implications of a Cyber-attack on the US Power Grid, 2015 .