Lloyd’s Insurer Says Cyber Risks Are Too Big to Cover

The head of the largest Lloyd’s of London insurers has called for governments to cover the risks of cyber attacks, saying the potential liabilities are too large for insurers to cover.

Stephen Catlin, founder of Catlin Group, said cyber security presented the “biggest, most systemic risk” he had encountered in his 42-year career in insurance, in part because a vulnerability in widely-used software or internet architecture can affect systems globally, putting the industry on the hook for simultaneous, multibillion-dollar payouts.

“Our balance sheets are not large enough to pay for that,” Catlin told the Insurance Insider London conference recently, according to The Financial Times.

In the latest cyber attack against a major US firm, health insurer Anthem reported earlier this week that hackers stole the account information of as many as 80 million customers. Other recent corporate victims include Sony Pictures, JPMorgan Chase, and Target.

Such electronic incursions present an opportunity for the insurance industry to sell more coverage. Policies are designed to help companies meet costs including mounting forensic investigations and defending lawsuits.

But Catlin stressed that cyber attacks are unusually systemic, rather than, for example, a natural disaster that affects only one specific region. “It’s possible that you can have the same loss happening around the globe,” he explained.

Governments have already established state-backed schemes to provide coverage for acts of terrorism, such as Pool Re in the United Kingdom and the Terrorism Risk Insurance program in the US, because the insurance market was unwilling to do so. But Catlin said cyber security posed an even bigger threat than terrorism.

“He’s got a valid point,” Andrew Horton, chief executive of Beazley, a rival Lloyd’s insurer, told the FT. “We’re very mindful of the potential aggregation impact. It’s something governments should be putting a lot of thought into.”

Rob Lay, a security expert at Fujitsu, said businesses should not rely on insurance to protect themselves from a cyber attack. “While insurance may help mitigate some of the financial impact of a security incident or breach, the reputational impact and the impact to the business operation cannot be mitigated with insurance in the same way,” he said in a news release.

Risk Management: http://bit.ly/1O8ZWXH

« Business Is Struggling To Combat Hacking
Israel’s Electrical Grid Cyber Attacked »

ManageEngine
CyberSecurity Jobsite
Check Point

Directory of Suppliers

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

XYPRO Technology

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

The PC Support Group

The PC Support Group

A partnership with The PC Support Group delivers improved productivity, reduced costs and protects your business through exceptional IT, telecoms and cybersecurity services.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

Talend

Talend

Talend is a leader in cloud and big data integration software. Applications include Risk and Compliance management.

Surrey Centre for Cyber Security (SCCS)

Surrey Centre for Cyber Security (SCCS)

The Centre focuses on three main research directions - Privacy and Data Protection, Secure Communications, and Human-Centred Security.

SRI International

SRI International

SRI International is a research institute performing client-sponsored R&D in a broad range of study areas including computing and cybersecurity.

KZ-CERT

KZ-CERT

KZ-CERT is the national Computer Emergency Response Team for Kazakhstan.

Silent Breach

Silent Breach

Silent Breach specializes in network security and digital asset protection. Services include Pentesting, Security Assessments, Incident Detection & Response, Governance Risk & Compliance.

NinjaJobs

NinjaJobs

NinjaJobs is a community-run job platform developed by information security professionals. We focusing strictly on cybersecurity positions.

Beosin

Beosin

Beosin is a blockchain security company providing cybersecurity services including security audits, on-chain asset investigation, threat intelligence and wallet security.

ShardSecure

ShardSecure

ShardSecure Microshard technology eliminates data sensitivity, providing security, privacy and compliance beyond encryption.

Saepio Solutions

Saepio Solutions

Saepio promote an all-encompassing approach to cybersecurity, ensuring the appropriate balance of budget and resource across Policy, Product and People.

StrikeReady

StrikeReady

StrikeReady have developed CARA, an advanced technology solution that offers personalized and proactive assessment and remediation of future and current risk in real-time.

Luxembourg House of Financial Technology (LHoFT)

Luxembourg House of Financial Technology (LHoFT)

Offering start-up incubation, co-working spaces including a soft-landing platform, the LHoFT connects and creates value for the entire Luxembourg FinTech ecosystem.

Clearvision

Clearvision

As an Atlassian Platinum Solution Partner, Clearvision works with teams in the UK and US, providing solutions for the Atlassian stack, Git and open source tooling.

Xact IT Solutions

Xact IT Solutions

Xact IT Solutions are a certified cybersecurity firm offering cybersecurity, compliance and managed services.

Trickest

Trickest

Trickest enables Enterprises, MSSPs, and Ethical Hackers to build automated offensive security workflows from prototype to production.

Ampsight

Ampsight

Ampsight specializes in enabling cloud integration, securing data, and navigating complications that drive critical-mission success.

BlazeGuard

BlazeGuard

At BlazeGuard, we understand that navigating the complex world of cybersecurity can be challenging. That’s why we make it our mission to simplify the process for you.