The 2022 Cyber Risk Insights Conference by Advisen recently wrapped up in New York. One of the world’s largest events for cyber risk and P&C professionals, this conference is home to a plethora of meetings, workshops and discussions with leading forces in the global cyber insurance market. Not to be missed, Limit’s Andrew Mitchell traveled to the Big Apple to take it all in. His takeaways are captured below.
The pandemic has changed the face of the cyber insurance industry. In 2020, $18 billion dollars in ransomware was paid out by businesses worldwide. While cyber exposures involving large companies tend to make for strong news fodder, many of these attacks involved the exploitation of general vulnerabilities rather than deliberate targeting of specific organizations.
Hackers in the cyber space tend to take advantage of “low hanging fruit.” These are typically cases in which commercial entities have a weak defense mechanism in place. In 2020, hackers were frequently able to successfully access networks through vulnerabilities in internet-facing devices. These entry points accounted for roughly 52% of losses across the industry. This number has increased largely since the pandemic due to the rising presence of remote work environments given the fact that employees increasingly connect using unsecured networks.
Another factor that plays a role in molding the state of the cyber security market is “social inflation.” Social inflation describes any change in societal norms that can impact the insurance market and claims costs. From the global adoption of remote work to an increasing reliance on digital tools, the cyber market has observed a noticeable wave of social inflation over the past few years.
Change is constant, and the cyber insurance market is living proof of this concept. As we begin to think about the upcoming year, the 2022 Cyber Risk Insights Conference helped remind us that the state of global cybersecurity remains extremely complex with a variety of variables that must be considered. Finally, the conference highlighted that in a world where digital tools are becoming the norm, forward thinking companies must take matters into their own hands by implementing endpoint security and focusing efforts on knocking out low-hanging fruit to mitigate the risk of costly cyber attacks.
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