Insurance buyers are clamoring more for cyber security coverage than any other emerging risk, according to a new study conducted by RKH Specialty, a specialty lines broker based in London.
The survey of global insurance professionals found that 70% listed cyber security coverage as the top casualty exposure, followed by product recall (11%) and drones (11%).
In addition, 61% of respondents indicated that supply chain disruption is the biggest property exposure, followed by flood (30%) and tornadoes (9%).
“Losses stemming from cyber-related attacks and business interruption can be catastrophic for individual businesses,” said Barnaby Rugge-Price, CEO, RKH Specialty. “There has also been a heightened focus on the business interruption aspect, where cyber attacks can cause whole facilities to shut down. But whether cyber related or not, any interruption to the supply chain can cause a disproportionate loss.”
As a result of these emerging risks, 80% of the global industry insiders reported witnessing an increased need for specialist risk coverages, particularly in finely-tuned, more targeted solutions.
“It’s no surprise to us to see a growing demand for highly-specialised risk coverage,” said Rugge-Price. “North American clients tend to seek the best value from their insurance spend by tailoring coverage around their firms’ specific exposures and needs.”
To meet this demand, 47% of respondents rely on domestic US brokers, while 36% turn to London and 11% to emerging markets.