Enhancing the Role of Insurance in Cyber Risk Management
The digital transformation of economic activities is creating significant opportunities
for innovation, convenience and efficiency. However, recent major incidents have highlighted
the digital security and privacy protection risks that come with an increased reliance
on digital technologies. While not a substitute for investing in cyber security and
risk management, insurance coverage for cyber risk can make a significant contribution
to the management of cyber risk by promoting awareness about exposure to cyber losses,
sharing expertise on risk management, encouraging investment in risk reduction and
facilitating the response to cyber incidents. This report provides an overview of
the financial impact of cyber incidents, the coverage of cyber risk available in the
insurance market, the challenges to market development and initiatives to address
those challenges. It includes a number of policy recommendations which support the
development of the cyber insurance market and contribute to improving the management
of cyber risk.
Published on December 08, 2017