In a world increasingly exposed to technology-based threats, the global insurance industry is well-positioned to play a greater role in rewarding those organisations that take cybersecurity seriously. This is the call from leading cyber analytics company CyberCube in a report timed for release to coincide with the World Economic Forum annual meeting in Davos, where its chief executive participated.
Pascal Millaire, Chief Executive Officer of CyberCube, outlined in discussions in Davos that in addition to offering beneficial terms to organisations demonstrating best practice in cyber security, insurers must work closely with governments to help enforce minimum security standards.
He also argued that insurers could help clients reduce cyber losses by sharing information they gain from managing large volumes of cyber claims. Insurers were also well-placed to offer approved vendor cybersecurity schemes.
Furthermore, businesses need to think differently about how they approach cyber risk. Rather than viewing it as an issue for their IT departments, they need to address it across their entire organisational structure in a much more holistic way.
CyberCube is one of the leading providers of cyber risk analytics to the insurance industry. Its report, Understanding the Societal Impact of the Fourth Industrial Revolution and The Role of Insurance, explores society's growing vulnerability to digital risks and the steps the insurance industry can take to address the threat.
The report notes that the arrival of 5G networks being rolled out around the world will provide criminals with faster and wider access to critical infrastructure and associated online services. As 5G becomes widespread, larger data packages will facilitate easier and more impactful cyber attacks without any geographic boundaries.
Pascal Millaire explained: "For centuries, the insurance industry has been the key to unlocking the economic potential of new technology. Part of this has always been insurers' ability to drive improvements in safety and regulation. That ability will be critical as global cyber risk increases.
"We're at a point at which the global economy is racing to digitise services and product offerings. This has far-reaching implications for...