A fierce spotlight has been thrown on cyber exposures by senior insurance industry leaders concerned about the catastrophe nature of the risk and the hidden aggregation issues posed by so-called silent cyber cover in policies.
Cyber exposures are rapidly being framed as the “new catastrophe risk” by insurance executives, as losses such as the June 27 global ransomware attack, which affected numerous businesses including Merck Pharmaceuticals, and Equifax data breach are rumored to potentially cost the insurance market around $1 billion each.
Advisen spoke to senior insurance executives at the CIAB Insurance Leadership Forum in Colorado Springs this week and most expressed deep concern with the aggregation of losses across multiple insureds and lines of coverage from a single event.
Rebecca Bole, Silent cyber – the new catastrophe risk: CIAB round-up (October 12, 2017), available with subscription at Advisen Cyber Front Page News.
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