Evaluating cyber risk? The 2022 Global Cyber Risk and Insurance Survey comprises 7,000 participants from 14 countries, across various industries and company sizes. Another silent risk might include a hacker creating significant disruption by opening the floodgates at a hydroelectric dam, likely causing significant downstream flood damage4 and potentially triggering property policies. Cost of a Data Breach Hits Record High According to New IBM Report, Safeguarding ePHI? We not only help insurers and their customers recover from the financial loss of ransomware attacks, data breaches, and other cyber incidents, we bring together a complete cyber ecosystem to put in place automated preventative measures that help them understand the risks and head off problems. An Aggregate Overview of Eight Semi-Annual eDiscovery Pricing Surveys, Changing Currents? Pharmaceutical giant, Merck, by far the most severely hit, is reportedly receiving about $2bn in cyber insurance coverage; losses for shipping giant, Maersk, exceeded $300mn1. We offer primary insurers and corporates long-standing expertise, sophisticated solutions, and adequate coverage. In this role she will succeed and also subsequently report to Shanil Williams. *Shared with direct express written permission from Munich Re. Respondents identified online fraud (46 per cent), data theft (43 per cent) and ransomware (28 per cent) as the most common types of attack that had affected their business. Read More about The eDisclosure Systems Buyers Guide 2022 Edition (Andrew Haslam), From LexisNexis to Nextpoint and from acquisitions to investments, the abridged listing of eDiscovery merger, acquisition, and investment (M&A+I) events seeks to consolidate and highlight key eDiscovery-related investment events and corresponding event dates, company involvement, and known event investment amounts. Baden-Baden Reinsurance Conference in 2018. Focused primarily on supporting the ComplexDiscovery publication, the company is registered as a private limited company in the European Union country of Estonia, one of the most digitally advanced countries in the world. We will make it clear how cyber risks are covered in traditional policies and for which scenarios a dedicated cyber insurance solution is needed, Donavan says. Steve Evans Ltd. registered in England No. AGCS offers Financial Lines solutions that provide customers with the confidence they need to make informed decisions, in an ever evolving risk landscape. Data from Munich Re demonstrates that, on a global level, cyberattacks have increased year-on-year as a result of digitalisation, exacerbated by the COVID-19 pandemic, and particularly within the IT, finance and telecommunications sectors. However, in line with these developments, security vulnerabilities and cyber attacks are on the rise. This high number comes as a surprise in light of the fact that business models increasingly rely on digitalisation and that awareness of associated threats is high. Guidewire, Aon and Guidewire launch cyber scenario for a US dam attack, October 25, 2018, 5. A new insurance approach is required to effectively counter new risks posed by cyber and to remove coverage uncertainty for customers, says Donavan. Clear portfolio monitoring and exposure management for Allianz, allowing effective use of underwriting capacity and optimal capital management. According to US claims analyst, PCS, nearly 90% of the total industry loss of Petya and NotPetya was attributed to so-called silent cyber exposures, which are potential cyber-related losses stemming from traditional property and liability policies not specifically designed to cover cyber risks. The topic is also increasingly on brokers agendas. The general consideration for inclusion in this running listing is the public announcement of an investment event by an organization that offers an eDiscovery solution as part of their overall offering portfolio regardless of their core business. This high number comes as a surprise in light of the fact that business models increasingly rely on digitalisation and that awareness of associated threats is high. The company operates virtually worldwide to deliver marketing consulting and services. Artemis, Merck & silent cyber impacts drove Petya industry loss: PCS, November 7, 2018, 2. Despite this, Munich Re notes a 21 per cent increase in the number of companies that have purchased cyber insurance particularly in the IT, healthcare and finance sectors, which are generally the most affected by cyberattacks. What if a major cyber attack strikes critical infrastructure? Read this article in Global Risk Dialogue. Fire and explosion, Shortage of skilled workforce, Market developments and Macroeconomic The nature of cyber risk is evolving rapidly and constantly with hacker attacks becoming more sophisticated, targeted and far-reaching, Donavan says. Only 12% of C-Level participants surveyed do not consider digital trends in 5G, cloud services, AI and data analytics relevant to their businesses. According to the survey, interest in cyber insurance is cross-sectoral. In line with these developments, security vulnerabilities and cyber-attacks are also on the rise. We have 220,000+ monthly reinsurance news readers & 17,500+ daily email subscribers. An important part of preparedness is the understanding of risk and the potential impact of that risk. Under updated wordings in Allianz P/C policies, physical damage and bodily injury arising from cyber events will generally continue to be covered. A further 35 per cent of surveyed decision makers say they are considering purchasing cyber insurance as an essential part of their risk management programme. A Running Listing of eDiscovery Events in 2022, Cyber, Data, and Legal Discovery Information. US Companies increasingly are exposed to large-scale, multi-vector mega attacks using advanced attack tools, often outpacing the maturity level of corporate IT security systems2. Digitalisation in most areas of business and life continues unabated. With these efforts, Allianz aims to be able to better manage the cyber aggregation risk in its P/C portfolios and make adequate capital provisions to deal with large-scale cyber loss scenarios that could potentially affect multiple policyholders at the same time. Meanwhile, on a positive note, compared to the previous years survey, the availability of cyber insurance appears to have gained further traction, as there has been a 21% increase in the number of companies that have already taken out cyber insurance. A Running Listing of eDiscovery Events in 2022, Anticipating Digital Disruption? Eighteen Observations on eDiscovery Business Confidence in the Summer of 2022, Challenging Variants? Registered office: 18-24 Brighton Road, Croydon, Surrey, United Kingdom, CR2 6AA. Publication Source: Munich Re, 2022. Complete Report: Munich Re Global Risk and Insurance Survey 2022 (PDF) Mouseover to Scroll. Munich Re Global Cyber Risk and Insurance Survey 2022. Get in touch directly using our contact form. To submit recommendations for consideration and inclusion in ComplexDiscoverys cyber, data, and legal discovery-centric service, product, or research announcements,contact us today. the availability of cyber insurance appears to have gained further traction, as there has been a 21% increase in the number of companies that have already taken out cyber insurance. HaystackID Launches New Global Advisory Offering, Consumers Paying the Price? This is uncharted territory. Appearing twice a year, Global Risk Dialogue is the Allianz Global Corporate & Specialty magazine with news and expert insights from the world of corporate risk. For example, 83% of surveyed representatives said that their own company is not adequately protected against digital threats. Munich Re noted that all the companies that were surveyed are focusing strongly on new, smart technologies. Besides cyber-crime, often it is technical failure, IT glitches or human failure which cause massive system outages or data losses. And all companies surveyed are focusing more strongly on new, smart technologies. Making up the majority of the market spending in dollars, eDiscovery services spending is expected to grow at a CAGR of 5.93% to $11.71B in 2026. Read More about An eDiscovery Market Size Mashup: 2021-2026 Worldwide Software and Services Overview, Authored by litigation support and eDisclosure expert Andrew Haslam, theeDisclosure Systems Buyers Guide 2022 Edition provides an overview of key technology considerations, industry approaches, and vendor capabilities regarding the discipline of eDisclosure (eDiscovery). Globally, a massive 83 per cent of C-level respondents say their own organisation is not adequately protected against cyber threats. NIST Updates Guidance for Health Care Cybersecurity, Countering Threat Actors? Reinsurance giant, Munich Re recently published the results from its Global Cyber Risk and Insurance Survey 2022. Although recognising pricing challenges, such as a lack of historical data and inconsistent attack reporting obligations, the report underlines the importance of leveraging any available data to reshape cyber risk assessment and better explain the modelling of cyber risks to insureds. The industry has to get a grip on these challenges in one way or another and we are expected to provide attractive solutions around cyber as todays key business risk., 1. AGCS appoints Vanessa Maxwell as new Global Head of Financial Lines. AGCS policyholders will choose among several options to tailor cyber risk coverage to their individual needs and risk profiles ranging from now-affirmative coverage in a traditional P/C policy to an endorsement embedded into a traditional policy to a specialist cyber insurance policy. Jody Yee discusses some of the main drivers behind the top risks facing the sector from the specter of cybercrime to the acute talent shortage. The new strategy helps Allianz better measure its cyber exposure and effectively respond to regulators and rating agencies by effectively managing cyber underwriting risks. Cyber risks: Are you ready for an attack? Website Privacy & Cookies and Disclaimer. ComplexDiscovery is an online publication that highlights cyber, data, and legal discovery insight and intelligence ranging from original research to aggregated news for use by cybersecurity, information governance, and eDiscovery professionals. The report says: The business potential for the insurance industry remains extremely high in the cyber line of business. Effective January 1, 2022, Jody Yee will be appointed as Global Industry Solution Director for Technology, Media & Telecom (TMT). With this understanding in mind, Munich Re, one of the worlds leading risk managers, commissioned a survey by the global market research company, Statista, to better comprehend the challenge of cyber risk and the increasing role of cyber insurance in risk mitigation. @`y0 fRRHb(2()Gw7R4U4! Willis Towers Watson, Silent cyber outlook: Is silent cyber risk creeping up on insurers?, September 11, 2017, 4. Top Global Insurance & Reinsurance Brokers, Re/insurers can help improve mental health resilience: Swiss Re, Insurance claims in Louisiana from Hurricane Ida reach $13.1 billion, Liberty Specialty Markets promotes Hall to Head of P&C Binders. Currently, 35% of the decision-makers surveyed are also considering taking out cyber insurance as an essential part of their risk management. Registered in England No.07191464. Solutions we can offer the technology, media and telecommunications (TMT) industry market. Ukraine Conflict Assessments in Maps (July 14 18, 2022), Volunteer Mobilization? Highly IT-oriented countries like India and China, as well as South Africa and Brazil lead the list of nations that see the biggest potential in digitalisation. ComplexDiscovery O. security vulnerabilities and cyber-attacks are also on the rise. Cyber incidents can trigger not only extensive financial or disruptive losses but, potentially, physical damage, BI, product recall, bodily injury or even have caused life-threatening consequences. This field is for validation purposes and should be left unchanged. Munich Re Board Member, Doris Hoepke, says: Insurers have to address silent cyber exposures in their traditional policies[5]. Read More about Inflection or Deflection? 2021 eDiscovery Processing Task, Spend, and Cost Data Points, The Year in Review? Adequate risk management is a prerequisite for cyber insurance and poses major challenges for all stakeholders. This keeps expertise around specific cyber exposures in the lines of business where theyve traditionally been underwritten and also benefitscustomers by providing certainty about the products they've bought.. Looking at the surveys results regionally, India, China and South Africa rank among the top three most affected countries overall. Watch our video highlighting the most important global business risks for 2022 and beyond. *, More than 80% of global survey respondents felt inadequately protected against cybercrime. The survey report estimates that global cyber insurance premiums stood at US$9.2 billion at the beginning of 2022, with projections to reach approximately $22 billion by 2025. Read the full press release. For policyholders, the set-up will be different depending on the specific line of business, as well as the market and regulatory environment. Such silent, or non-affirmative, cyber exposures lead to inadequate protection of customers with a lack of certainty and transparency for all parties involved customers, brokers and insurers. The 2017 WannaCry and NotPetya attacks highlighted the risks and potential damage across all business areas causing significant concern around cyber risks in traditional property-casualty (P/C) policies, says Emy Donavan, Global Head of Cyber and Tech PI, AGCS. Learn how Munich Re's cyber solutions help you confidently forge ahead. We also publish Artemis.bm, the leading publisher of news, data and insight for the catastrophe bond, insurance-linked securities, reinsurance convergence, longevity risk transfer and weather risk management sectors.. Weve published and operated Artemis since its launch 20 years ago and have a readership of around 60,000 every month. While ComplexDiscovery regularly highlights this information, it does not assume any responsibility for content assertions. No reproduction without prior authorisation. Allianz operates as an international insurer on almost every continent. Available at: [Accessed 2 June 2022]. Willis Towers Watsons 2018 Silent Cyber Outlook Survey highlights growing concerns about silent cyber exposures. The need for action is clear. In many cases, cyber event definitions will be added to existing wordings (e.g. Reach the largest reinsurance audience. Other Allianz P/C companies will apply the strategy by January 1, 2020, latest. Reporter Rebecca Delaney. In the survey, Munich Re stated that this high number comes as a surprise in light of the fact that business models increasingly rely on digitalisation and that awareness of associated threats is high. In the past few years, cyber risks have gone mainstream. The insurance industry has yet to be commonly perceived as part of the solution. One thing is clear: Digital disruption is progressing on a global level and associated dependencies are advancing enormously and they make no allowance for those who are not sufficiently prepared. Munich Re concludes by emphasising that building cyber resilience requires insurers to explain the importance and availability of such measures for cyber risk exposure. Ukraine Conflict Assessments in Maps (July 24 28, 2022), Port Support? However, it is a number of non-financial risks that are most concerning. The Munich Re Global Cyber Risk and Insurance Survey 2022, Complete Report: Munich Re Global Risk and Insurance Survey 2022 (PDF) , MunichRe Global Cyber Risk and Insurance Survey 2022, https://www.munichre.com/landingpage/en/global-cyber-risk-and-insurance-survey-2022.html, [Annual Update] International Cyber Law in Practice: Interactive Toolkit, Defining Cyber Discovery? Creative Commons Attribution 4.0 International License. On a global level, attacks such as online fraud, ransomware and data theft increased year-on-year as our data shows. The German supervisory authority, Bafin, has announced that it will be more attentive to insurance silent cyber exposures in 2019. The survey was conducted among more than 7,000 participants from 14 countries. Clear definitions of when cyber risks are covered under traditional policies, as well as for which scenarios a dedicated cyber insurance solution is required, will be written-in. I would expect 2019 to be definitely noisier around silent cyber exposures, Donavan says. Munich Re, in particular, constantly innovates as a leading cyber reinsurer. Here, the discrepancy between risk awareness and underinsurance is even higher. However, Munich Res survey also found that the insurance industry is lacking in promoting awareness about the security solutions and protection available; 33 per cent say they have never been offered cyber insurance by their insurer, while 20 per cent actively decided against cyber insurance or did not consider insurance protection at all. Russias war in Ukraine continues unabated, and the potential impact on the insurance industry is increasingly coming into question. For the first time in the eight-year survey, cyber incidents is the top global risk in the Allianz Risk Barometer 2019, tied with BI. This growth is spearheaded by eDiscovery software spending which is estimated to grow at a CAGR of 10.7% to $7.18B in 2026. Get to know our Group companies, branches and subsidiaries worldwide. Read More about An Abridged Look at the Business of eDiscovery: Mergers, Acquisitions, and Investments, Initiated in the winter of 2019 and conducted eight times with 641 individual responses, the semi-annual eDiscovery Pricing Survey provides a mechanism for cyber, data, and legal discovery specialists to share and consider current pricing for selected eDiscovery-centric collection, processing, and review tasks. Hong Kong issues second and largest ILS cat bond, Munich Re: Disproportionately high cyber insurance gap. However, the results of our study show that the insurance industry must become even more active in sales and explanation. The digital future is now, and Munich Re will help you navigate it. In 2017, large cyber-attacks like Petya and NotPetya or WannaCry caused significant losses for businesses insured losses for the former are estimated to be $3.3bn. All content copyright Steve Evans Ltd. 2021 All rights reserved. Initiated in December 2021, analyzed by Munich Re experts in January and February 2022, and published in May 2022, the survey may be beneficial for cybersecurity, information governance, and legal discovery professionals operating in the eDiscovery ecosystem and seeking to better understand cyber risks and remedies. Despite possessing the highest prevention capabilities and IT budgets, 60 per cent of large corporations (organisations with more than $5 billion in sales) were heavily affected by ransomware or a cyberattack causing fraud or breach of data. ComplexDiscovery O is a technology marketing firm providing strategic planning and tactical execution expertise in support of cyber, data, and legal discovery organizations. While global digital connectedness promises amazing things, the threat of cybercrime can make it feel like you are charging forward without a guide. A comprehensive solution for all products while extremely challenging to create is in the best interest of customers and brokers, explains Stanislawski. Issues Impacting eDiscovery Business Performance: A Summer 2022 Overview, Downshift Time? Exterro Completes Recapitalization in Excess of $1 Billion, TCDI Completes Acquisition of Aons eDiscovery Practice, eDiscovery Mergers, Acquisitions, and Investments in Q2 2022, TCDI to Acquire Aons eDiscovery Practice, On the Move? In response, the insurance industry has proven that it can provide real value-add for its clients with comprehensive solutions that adapt to the rapidly changing risk landscape. Get reinsurance news by email here. Reinsurers have increasingly put silent cyber on the agenda, as well. [M] Munich Re / [P] Stanislaw Pytel / Getty Images, American Alternative Insurance Corporation (AAIC), HSB - The Hartford Steam Boiler Inspection and Insurance Company, Munich Re Asia Pacific Life and Health (APAC), Munich Re Life US - Munich American Reassurance Company, Inc. Munich Re Underwriting Agents (DIFC) Ltd. Munich Re US - Munich Reinsurance America, Inc, Munich Reinsurance Company of Africa Limited (MRoA), Munich Reinsurance Company of Australasia, Munich Holdings of Australasia Pty Limited (MHA), The Princeton Excess and Surplus Lines Insurance Company (PESLIC), https://cybersecurityventures.com/cybercrime-damages-6-trillion-by-2021/, Cyber insurance: Risks and trends 2021 (TOPICS Online). Cybercrime damage will reach $10.5 trillion by 2025, estimates global researcher Cyber Ventures. For the latter, 29 per cent of respondents said this was because the price of coverage was too high. Ukraine Conflict Assessments in Maps (July 9 13, 2022). Only email is mandatory, but the more you tell us about yourself the better we can serve you in future. 31 May 2022 Overall, the responses to the comprehensive questionnaire in our survey underscore the need for the global insurance industry to increase efforts to make cyber risks more visible, conditions more understandable, and products easier to assess. New Report Shows Corporate Legal Provider Counts Remain Low, Time for an Expert? A short percentage-based assessment of the qualitative benefit of the recent report, Global Cyber Risk and Insurance Survey, 2022, by Munich Re, one of the world's leading reinsurance companies. But you're not. Ukraine Conflict Assessments in Maps (July 19 23, 2022), Beyond the Pause? While the global market is beginning to address silent cyber exposures, Allianz is a first-mover insurer and is engaged in market information and education. Vic Cyber risk hits the top spot, with a series of ransomware attacks, combined with problems caused by accelerating digitalization and remote working. According to a recent update from the Institute for the Study And all companies surveyed are focusing more strongly on new, smart technologies. Adding further to this, results also showed that 35 % of C-level participants are considering cyber insurance for their company, therefore showing significant business potential for the insurance industry. Editors Note: From time to time, ComplexDiscovery highlights publicly available or privately purchasable announcements, content updates, and research from cyber, data, and legal discovery providers, research organizations, and ComplexDiscovery community members. 6Si`Wt Yp&[Zz2 g66*::0H On a global level, attacks such as online fraud, ransomware and data theft increased year-on-year as our data shows. The UKs Prudential Regulatory Authority urged insurers and brokers in 2017 to address cyber risks, so the move is on by regulators globally to raise awareness on a general scale. 2022 eDiscovery Market Kinetics: Five Areas of Interest, Trusting the Process? **, More than one quarter of survey respondents were unaware of what cyber protection offers.**. It is likely that many consider themselves not attractive enough to hackers and that any potential consequences of a security breach would be minor. Covering topics from the EDRM Model to vendor service and software analysis, the guide provides a complete and credible resource for legal and IT professionals seeking to understand and apply eDisclosure (eDiscovery) concepts, processes, techniques, and tools. The list of technological drivers is headed by 5G, cloud services, artificial intelligence, and data analytics. Captive Insurance Times recently published a feature examining how the evolution of cyber risk has led to more companies considering captives to close coverage gaps left by the expensive commercial market. In addition, only 12% of C-Level participants from the survey do not consider digital trends relevant to their businesses. 07337195 In addition, 38% of C-Level participants from the survey said that they are extremely concerned about a potential cyber-attack taking place on their company. Munich Re offers the products and services individuals and businesses need to sidestep risks, nimbly respond when breaches occur, and get back on track after time and money are lost to cybercrime. H;p 25&0borgZqA)I`.0aHkN-hU M"00J0``l`4`ag!FcBs&PpqzKE. As these incidents demonstrate, cyber loss events can impact multiple lines of business beyond specialist cyber cover such as property, business interruption (BI), errors and omissions (E&O) or kidnap and ransom (K&R). Munich Re has invested in experts, and strong partnerships in order to offer a full spectrum of pre-and post-incident cyber solutions for businesses, individuals, and the primary insurers who protect them. On a positive note, compared to the previous year, the availability of cyber insurance appears to have gained further traction, as there has been a 21% increase in the number of companies that have already taken out cyber insurance. A Cybersecurity Threat Landscape Framework from ENISA, Live with Leeds? With the Allianz network AGCS provides services in over 200 countries and territories.