Competition in the cyber insurance space is expected to take off, according to analysts at Frost & Sullivan, pointing to rapidly increasing security concerns.
Audrey William, Frost & Sullivan’s head of ICT Research, said Monday that security threats will rise to become the single biggest issue to tackle in the ICT industry, driving more demand, and competition for cyber risk insurance.
“The Ashley Madison incident was an example of how hackers broke into the company's network and leaked customers' personal information. The incident brought about greater awareness of cyber security threats amongst organizations,” William said.
“Cyber insurance will rise in the coming years. We will witness more insurance companies step in to offer cyber insurance policies that will offer more than just compensation and protection from liability in the event of a cyber-attack,” she added.
Looking ahead, William said targeted attacks on computer Industrial Control Systems (ICS) are the biggest threat to a nation's critical infrastructure. Such attacks have the potential to bring down critical systems which can then lead to damaging a customer's brand and reputation. Some of the attacks in recent years on Industrial Control Systems have not been publicized, but the best known instances of targeted attacks on industrial control systems include the Stuxnet attack on an Iranian nuclear plant and the Shamoon attack on Saudi Aramco.
In related news on Monday, XL Catlin’s Cyber & Technology insurance business
launched an online resource – CyberRiskIQ.com, which aims to provide clients with support for cybersecurity readiness and incident response services.
“Cyber threats and data breaches are continuing to increase in both magnitude and sophistication. Industry and world leaders are calling upon company executives and governing boards to make cybersecurity a top priority. As a result, our clients need to be prepared to respond to the latest threats and more importantly, have the resources to help them successfully navigate potentially catastrophic circumstances,” said John Coletti, chief underwriting officer for XL Catlin’s Cyber & Technology group in North America.
“That’s why we’re committed to making sure our clients are ready to address their cyber risk with comprehensive cyber insurance coverage and ample resources at their disposal that can help control costs, mitigate the likelihood of a breach and protect their reputations during a cyber-event,” he said.
CyberRiskIQ.com is an online portal of information, tools and insights designed to help customers learn more about cyber threats and network security perils, including an incident roadmap suggesting steps to take following a network or data breach incident.