The cyber market has been growing year over year and is expected to grow by nearly $10 billion in premiums between now and 2025, according to the Swiss Re Institute. Given this rapid expansion, it is critical for insurance organizations to become better versed in all things cyber.
To answer this call, in April, more than 400 cyber insurance professionals from 20 different countries gathered in London at Zywave’s Cyber Risk Insights Conference to discuss the pivotal issues and most important topics impacting the rapidly expanding cyber landscape.
The 12th annual event highlighted some of the most pressing industry topics, such as threat evolution, claims severity, and modernizing the cyber claims process. Additionally, Vicky Carter, Chairman of Global Capital Solutions International for Guy Carpenter and Deputy Chair of Lloyd’s of London, delivered a keynote address and was joined for a fireside chat by Rachel Turk, Chief Underwriting Officer of Lloyd’s of London.
Using the 'Butterfly Effect' as a metaphor, Carter emphasized the interconnectedness of the global ecosystem and pointed out the significance of interacting with complex systems around the world. “Among [global] shifts, it’s impossible not to highlight the evolving cyber threat landscape. Many organizations, including insurers who hold large data sets, are prime targets for cyber criminals.”
As cyber attacks rise in severity and frequency year over year, it becomes more and more important for individuals and organizations to be prepared. Data is essential in identifying potential exposures, recognizing patterns of frequency and severity, and helping businesses determine the coverages that they need.
Because of this, education on the importance of protection from cyber events continues to be a central theme in discussions around the future of the cyber industry. Cyber threats are not going anywhere and will continue to evolve. Responses to these threats also need to evolve.
Key themes throughout the event included the value of cyber insurance and the need to emphasize the small-business cyber market where many attacks occur. Additionally, the program examined how threats are changing and claims are becoming more complex due to the intangibility and global nature of many cyber attacks.
In addition to the 12 sessions held during the primary conference, Zywave hosted two unique Cyber Workshops focused on Cyber Loss Data and Cyber Distribution, which gave attendees the opportunity to learn from experts in more specialized areas. At the event, Zywave also launched its new Cyber Quoting solution—a centralized quoting platform that brings together global cyber insurers and U.S. distributors, connecting them through a simplified, transparent data collection process.
“As cyber losses continue to rise, cyber insurance has become a critical component of risk mitigation plans for the majority of businesses—large and small,” said Eric Rentsch, Zywave’s Chief Product Officer. “While cyber insurance is in high demand, securing the appropriate coverages still can be a challenge.”
“Tedious, time-consuming data collection is one of the biggest pain points for cyber insurance brokers and their clients,” Rentsch added. “To make the process easier for all parties, Zywave’s Cyber Quoting solution collects input through a straightforward, standardized questionnaire, resulting in less guesswork and greater efficiency across the insurance distribution chain.”
Overall, the biggest takeaway from Zywave’s Cyber Risk Insights Conference is that innovation in the cyber market is essential. Threats and opportunities are not going anywhere--and these events will continue to become more complex and have unexpected ripples that will echo throughout the insurance community and beyond. Staying on top of the latest trends and best practices is critical to ensuring success in the cyber market.