Next 12 months could see more cyber-related losses, survey finds
The survey sample comprised close to 700 participants from over 100 insurance companies.
Insurance companies are expecting cyber-related losses across all business lines over the next 12 months, driven by increasing reliance on technology and high-profile cyber attacks, according to the annual Silent Cyber Risk Outlook global survey from Willis Re, the reinsurance division of Willis Towers Watson.
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Results by insurance line
The survey found that there has been a significant increase in the expected level of cyber-related loss across all lines of business in the past 12 months. The contrast is most pronounced in other liability. In 2017, only 35% of respondents perceived the silent cyber risk factor as greater than 1.01; in 2018, this percentage has increased to 62%.
The survey ranks respondents’ silent cyber risk factor from <1.01, indicating less than one anticipated cyber-related loss per hundred non-cyber covered losses, to 2.0, representing as many cyber losses as non-cyber losses over the next 12 months. The increased concern might be due to actual large-scale events such as WannaCry and NotPetya, which demonstrated the potential for cyber-related losses in multiples lines of business.
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Methodology
The survey sample comprised close to 700 participants from over 100 insurance companies and groups around the world as well as a number of Willis Towers Watson employees. The focus of the survey was five lines of business: first-party property, other liability (which this year incorporated auto), workers’ compensation and two new lines — errors & ommissions and D&O.
“The insurance market considers ‘silent cyber’, or cyber-related losses under policies where cyber risk isn’t specifically included, to be a far greater risk than ever before,” Anthony Dagostino, global head of cyber risk solutions, Willis Towers Watson, said in a statement.
A full report can be found on Willis Towers Watson’s website.
Related: D&O concerns identified in Willis Towers Watson survey