Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • News

Cyber insurance gap 'disproportionately high', Munich Re warns

Open-access content Wednesday 25th May 2022
Cyber insurance gap 'disproportionately high', Munich Re warns

There is a “disproportionately high” mismatch between cyber risk awareness and implementation of protection measures given the increasing frequency and severity of attacks, Munich Re has said.

The warning comes in a report alongside findings from the company's Cyber Risk and Insurance Survey 2022, which included more than 7,000 participants from 14 countries across all industries and company sizes.

Although cyber risk awareness among managers has risen by nearly 10% since last year, 83% of surveyed representatives said that their own company is still not adequately protected against digital threats.

This is despite 38% of C-level respondents admitting that they are “extremely concerned” about a potential attack, up from 30% last year, with 71% of companies surveyed having now been affected by ransomware or a data breach, up from 53%.

On a more positive note, 43% of executives said that they had been offered cyber insurance, up from 34% in 2021, and 35% are now considering coverage for their company. 

“Supply and demand for cyber insurance have increased slightly, but most respondents are still not adequately protected or even prepared,” the report states.

“In view of the market situation, the requirements on the part of insurers to provide access to products and solutions and to ensure sustainability for this line of business are also increasing. 

“The potential for cyber insurers is high, but resilience and readiness are a prerequisite for tapping into this potential.”

Munich Re estimates that the global value of cyber premiums was $9.2bn (£7.4bn) at the start of this year, and expects this to reach approximately $22bn by 2025.

Its survey found that a lack of human resources and skilled personnel, poor integration and interoperability of security solutions, and insufficient collaboration between individual departments, are among the main challenges for companies looking to improve cyber security.

A lack of historical data and non-existent or inconsistent legal obligations related to reporting ransomware or cyber business interruption events are also making it difficult for insurers when pricing cyber risks.

“However, the insurance industry finds itself able to collect and analyse more and more information from covered losses,” the report adds. “Insurers and Munich Re are in a uniquely privileged position to collect proprietary information from risk owners. 

“Cyber insurance, together with other stakeholders, can leverage this data to reshape cyber risk assessment and better explain the modelling of cyber risks to its insured.”

 

Image credit: iStock

Author: Chris Seekings

Filed in:
News
Topics:
Technology
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ