Businesses continue to embrace technological innovation despite the fact that doing so may lead to the emergence of new and unforeseen risks. As cyber risk is one of the most swiftly evolving perils in the reinsurance industry, carriers should carefully manage the exposures – and not only for competitive advantage. As regulators formalize capital requirements and qualitative measurements of risk appetite in this rapidly evolving market, companies will be required to enhance cyber underwriting and reinsurance strategies, leverage innovative modeling capabilities and develop technical and underwriting risk talent to continue offering clients the best security possible.
Cybersecurity will remain a critical and enduring focus for businesses for several reasons. The pace of technological development continues to rapidly advance. Artificial intelligence is enhancing both the effectiveness and peril of traditional cyber threats, while other emerging technologies increasingly create unforeseen vulnerabilities in novel ways – deep fakes, voice-based digital assistants, Internet of Things (IoT) devices and more. In addition, COVID-19 has forced many businesses into a remote mode of work, presenting an expanded threat surface for cyber-criminals to exploit.
In the coming year and each subsequent year, the cyber landscape may become more complex. The Marsh & McLennan Cyber Handbook 2021 features the latest perspectives from business leaders across Marsh & McLennan and our strategic partners, who have deep knowledge of the cyber risk landscape, to help companies better manage their cyber risk. Guy Carpenter is a business of Marsh & McLennan.