Surveys suggest that cyber is an under-insured risk: many more organisations believe that their existing insurance would respond in the event of cyber attack than is likely to be the case. Understanding the impact of severe events is one of the key requirements for insurers to develop cyber risk cover, and this study aims to contribute to that knowledge base.
The scenario described in the report reveals three attributes of cyber risk that are particularly significant for the development of insurance solutions. These factors may individually be found in a variety of risks, but cyber risk combines them in ways that demand innovative responses by insurers.
This report reveals a complex set of challenges, but the combination of insurers’ expertise in pricing risks together with the capabilities of the cyber security sector to assess threats and vulnerabilities, and the risk modelling expertise of the research community, has the potential to offer a new generation of cyber insurance solutions for the digital age.