The survey ranks respondents' silent cyber risk factor from <1.01, indicating less than one anticipated cyber-related loss per hundred non-cyber covered losses, to 2.0, representing as many cyber losses as non-cyber losses over the next 12 months. (iStock)
Insurance companies are expecting cyber-related losses across all business lines over the next 12 months, driven by increasing reliance on technology and high-profile cyber attacks, according to the annual Silent Cyber Risk Outlook global survey from Willis Re, the reinsurance division of Willis Towers Watson.
Results by insurance line
The increased concern might be due to actual large-scale events such as WannaCry and NotPetya, which demonstrated the potential for cyber-related losses in multiple lines of business. (Photo: Willis Towers Watson) The survey found that there has been a significant increase in the expected level of cyber-related loss across all lines of business in the past 12 months. The contrast is most pronounced in other liability. In 2017, only 35% of respondents perceived the silent cyber risk factor as greater than 1.01; in 2018, this percentage has increased to 62%.
The survey ranks respondents' silent cyber risk factor from <1.01, indicating less than one anticipated cyber-related loss per hundred non-cyber covered losses, to 2.0, representing as many cyber losses as non-cyber losses over the next 12 months. The increased concern might be due to actual large-scale events such as WannaCry and NotPetya, which demonstrated the potential for cyber-related losses in multiples lines of business.
Methodology
The survey sample comprised close to 700 participants from over 100 insurance companies and groups around the world as well as a number of Willis Towers Watson employees. The focus of the survey was five lines of business: first-party property, other liability (which this year incorporated auto), workers' compensation and two new lines — errors & ommissions and D&O.
"The insurance market considers 'silent cyber', or cyber-related losses under policies where cyber risk isn't specifically included, to be a far greater risk than ever before," Anthony Dagostino, global head of cyber risk solutions, Willis Towers Watson, said in a statement.
A full report can be found on Willis Towers Watson's website.
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