Cyber risk is already impacting many lines of business, from property to auto liability, and most industries, from the public sector and retail to financial services and manufacturing, the last of which was evidenced in the recent Norsk Hydro cyberattack. As cyber-related losses from traditional policies not specifically designed to address cyber risk grow in number, the term ‘silent cyber’ has landed on the radars of many insurance professionals, with insurance companies now having to figure out how to plug the silent cyber holes.
“Cyber as a standalone dedicated insurance policy is still pretty new within the past decade or so. Now, carriers are really being tested as claims come in [from] the cyber incidents, the malware, and the ransomware,” said Kelly Castriotta (pictured), deputy product development leader for the North America region of Allianz Global Corporate & Specialty (AGCS). “In particular, one of the major considerations for the industry is that we didn’t realize necessarily that there would be physical loss or loss of life stemming from these cyber incidents, so how is that treated and how does that impact all of our portfolios, not just in a dedicated cyber policy? I think that’s exactly why these questions are coming up, when you see this widespread, potentially catastrophic kind of loss that can harm multiple companies and multiple industries.”
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