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.
Cybersecurity frequently makes the headlines and has featured in the U.S. election — yet many people lack the basic skills to keep themselves, their communities and their workplaces safe from cyberattack. And most governments lack a clear understanding of how to overcome these knowledge gaps, according to Paul Mee, Partner, Digital and Financial Services at Oliver Wyman, and Rico Brandenburg, Partner at Oliver Wyman Financial Services. Oliver Wyman is an affiliate of Guy Carpenter.
The cost of the problem is becoming exorbitant. The World Economic Forum ranks cyberattacks as the second most concerning risk for doing business globally over the coming decade. The COVID-19 pandemic has increased that threat of cyberattacks by accelerating the spread of digital technologies, giving bad actors the opportunity to target tens of millions of people working from home. Ransomware attacks jumped by 20 percent in the first half of 2020, while the cost of cybercrime continues to climb and was estimated to be USD 600 billion globally — or nearly one percent of world gross domestic product — in 2018.