Cyber Risks: The Growing Threat

Cyber Risks: The Growing Threat

Dr. Robert P. Hartwig, CPCU and Claire Wilkinson
April 8, 2013

Amid a rising number of high profile cyber attacks—most recently at Twitter, LinkedIn and Yahoo—government is stepping up its scrutiny of cyber security. This is leading to increased calls for legislation and regulation, placing the burden on companies to demonstrate that the information provided by customers and clients is properly safeguarded online.
 
Despite the fact that cyber risks and cyber security are widely acknowledged to be a serious threat, a majority of companies today still do not purchase cyber risk insurance, though this is changing. Recent industry analysis suggests that more companies are now purchasing cyber coverage and that insurance has a key role to play as companies and individuals look to better manage and reduce their potential financial losses from cyber risks in future.
 
Data shows that companies are learning from past cyber attacks and breaches. There is evidence companies are becoming better at managing the costs incurred to resolve a data breach incident and for the first time in seven years both the organization cost of a data breach and the cost per lost or stolen record declined in 2011.

 

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