Despite historical profitability and forecasts of hypersonic product growth, the reinsurance industry’s cyber growth trajectory has tapered off over the last two years and is evidencing some growing pains. This flattening market trend is directly at odds with a heightened threat environment and the increased valuation of intangible assets. Looking toward the remainder of 2020, as COVID-19 upends how businesses interact with technology, the reinsurance market sees a number of emerging trends that present both potential challenges and opportunities.
Cyber Decoder is a digital newsletter highlighting the insights, analysis and market-leading expertise of Marsh & McLennan businesses on the critical issues of cyber risk today.
Adapting Cyber Incident Response Plans for the Remote Workforce
When the COVID-19 pandemic prompted organizations to move rapidly to a remote workforce, many may have inadvertently increased their operational risk, especially regarding cybersecurity. The need to quickly expand network bandwidth and modify normal IT operating models led many organizations to bypass normal processes and procedures, potentially violating, weakening, or eliminating IT and security policies.
Cybersecurity for a Remote Workforce
As uncertainty related to the pandemic lingers, many organizations plan to maintain semi-remote, virtual workplaces over the next 12 to 18 months — and possibly permanently. In an article published in the Massachusetts Institute of Technology Sloan Management Review, Oliver Wyman cyber leaders offer organizations tangible guidance on understanding changes in the cyber threat landscape and workforce conditions, assessing cybersecurity profiles, adjusting cyber strategies and ramping up employee training and awareness programs.
Silent Cyber: No Longer Silent?
A major issue confronting insurers and reinsurers, silent cyber is an underlying exposure with potential for high loss aggregation. Recent regulatory mandates call for such exposures to be either affirmed or excluded in property and casualty policies. In an article published in Reactions, Guy Carpenter cyber practice leaders review the background of this critical issue, including relevant case law with the potential to significantly expand insurer and reinsurer exposure to this risk.
Webcast Replay: Managing Cyber Risk in Life Sciences Technology
Life sciences companies are increasingly aligning with technology firms to pursue advances that enhance the quality, speed and sophistication of patient care. However, these advances introduce new cybersecurity risks and regulatory oversight. In the COVID-19 era, the use of medical tracking and diagnostic technologies intensifies the need to address such risks. On this webcast, Marsh experts and policy, cybersecurity and legal leaders discuss how healthcare ecosystem stakeholders can manage complex cybersecurity and regulatory issues and protect themselves from potential liabilities.
Guy Carpenter’s Cyber Global Center of Excellence is actively following and responding to significant developments in the cyber risk sphere and helping clients adapt to evolving technologies.