Cyber security on the mind at Davos

Cyber security on the mind at Davos | Insurance Business

Cyber security on the mind at Davos
Cyber security and the lack of cyber coverage across the world has been a key talking point at the World Economic Forum (WEF) in Davos.

The forum, which is attended by CEOs from the member companies of the WEF, attracts plenty of media attention and this year cyber is on the minds of many at the Switzerland gathering.

Following the recent hack of Aussie Travel Cover in which thousands of personal details about customers were breached, economic and business leaders have stressed that the cyber threat is only going to get bigger over the coming years.

CEO John Chambers, CEO of IT firm Cisco Systems,  said in a public session that “security was bad last year” and predicted that “this year is going to be much worse”, while Accenture CEO Pierre Nanterme said the “four biggest challenges the tech industry faces in coming years are security, security, security and security.”

Inga Beale, CEO of Lloyd’s stressed the startling growth of the cyber risk industry.

“Every time there is an attack, demand for policies goes up,” Beale told Forbes and noted that two years ago the industry took less than $1 billion in premiums while now cyber risk accounts for over $2.5 billion worldwide.

Beale also noted that companies need to plan accordingly for cyber risk and sees the United States as the current benchmark with 90% of worldwide cyber policies purchased in America.

“The US companies are ahead of the curve.

“Insurance used to be about concrete, protecting the loss of physical things. Now you have to get companies to insure against more intangible things.”