A.M. Best Report Focuses on Cyber-Security in the Insurance Industry
Even though losses due to natural catastrophe are likely to pose the biggest threat to insurers, especially in terms of property and casualty, a new report takes a look at what could be a significant threat in its own right: cyber-security.
A new report put out by A.M. Best takes a look at the exposure to cyber-security risk that could wind up costing the global insurance industry USD 31 billion. According to the report, the insurance industry is especially vulnerable to cyber-security issues due to its nature. Many records are stored electronically, and there are huge databases full of information. On top of that, many consumers receive quotes online, and manage their policies online.
Cyber insurance policies
With the growing use of computers and the Internet, many insurance companies are starting to protect themselves. The A.M. Best report indicates that many insurers are taking steps to improve the security they have on their own systems, boosting IT and infrastructure. However, that’s not all. There has also been a rise in cyber insurance policies.
Insurers are willing to purchase cyber insurance policies to help protect themselves against cyber-attack, and the liability that might come with losses related to such attacks. It’s a way to protect company assets, as well as protect policyholders.
Underwriters are already working to learn more about the risks associated with cyber-security problems, and working to understand what makes companies – and people – vulnerable. As we continue to move through the digital age, understanding the risk posed by online attacks becomes increasingly important.
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