Insurance sector failing to deal with security threats

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Insurance sector failing to deal with security threats

Simon Quicke

Those in the insurance and risk management sector are failing to translate their concerns about security threats into action.

Although those responsible for monitoring financial risks are increasingly aware of technological threats posed by cyber crime they do not have the muscle to influence management decisions to react to those challenges.

According to findings published by Marsh and Chubb Insurance the perceived threat of cyber risk is on the rise but over half of those in the industry it surveyed did not know if they had been attacked and 59% had not estimated how much an attack could cost their organisation.

"Eisk managers are right to be concerned about cyber risk. These threats will become considerably more acute for organisations as a result of our growing dependence on technology and web-based solutions such as cloud computing," said Fredrik Motzfeldt, communications, media and technology practice leader for EMEA at Marsh.

"Despite these concerns, risk managers continue to have a minority stake in the management of cyber risk," he added.

The problems about dealing with cyber threats was not just limited to the management of the insurance industry but was also having an impact on the products the sector offered users.

"The insurance market response to this is to see an opportunity to9 develop new products and provide risk solutions to business - product innovation is key," said Richard Lambert, European technology insurance manager at Chubb Insurance.

 The fact that only a minority of those surveyed felt that the cyber insurance available in the marketplace today is meeting their needs is a clear call for continued dialogue between the business, legal and insurance communities," he added.

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