Cyber risks in the marine sector

04 October 2017

This month's edition of Cyber Decoder, JLT Specialty’s monthly Cyber newsletter, contains the following topical articles:

Maritime sector wakes up to mounting cyber exposures:

Modern commercial shipping is becoming more dependent on technology for navigation, communication and to control and monitor propulsion and machinery. Cargo handling and port management systems are also becoming digitalised and can now be controlled in real time through wireless networks. According to the 2017 Safety and Shipping Review from Allianz, the cyber threat to the maritime sector is growing. In fact, shipping, ports and logistics firms from the US to Asia were among the worst affected by the NotPetya attack in June this year. One major shipping company, which suffered significant disruption to its operations, is expected to incur attack costs between USD 200 million and USD 300 million. This article talks about the wide range of cyber risks for the maritime sector and some public examples of cyber attacks. It also gives information about how the shipping industry is responding with cyber security guidelines and standards and what shipping companies can do to transfer their risk.

UniCredit joins ranks of financial services data breaches: 

UniCredit SpA, an Italian bank, has become the latest financial services company to be a victim of cyber crime. It is thought to have suffered one of the biggest breaches in Italy. As per IBM, data breaches in the financial services sector are increasing – while the number of attacks rose by 29%, more than 200 million financial services records were breached in 2016, a 937% rise over 2015. This article talks about data breaches within various financial services companies such as banks, insurers and independent financial advisers and what might happen once General Data Protection Regulation is implemented next year.

Global ransomware attacks hit earnings: 

Following a study of 65 severe breaches at listed companies, Oxford Economics estimates that companies hit by a major cyber attack will on average shed USD 150 million of market value and see their share prices fall by an average of 1.8%. This article reveals, through interim results and corporate announcements in August, the extent of business disruption and financial impact caused by two separate global ransomware attacks in May and June.

Cyber premiums to exceed USD 20 billion by 2025:
 

This article contains the details of a KPMG report that talks about the future of the cyber insurance market and how insurers can restructure to better serve customers in the digital world. It also gives information about how buyers can get more cover for their premium in a market that is rife with new buyers.

US court rulings clarify limitations of crime cover:
 

In many cases of social engineering and business email fraud, insurers have been denying claims, stating that computer crime policies are limited to traditional hacking. This article contains the details of two court rulings – one favouring the insurer and another favouring the insured – in the US.

Responding to a ransomware attack: 

In this article, JLT's Cyber Consortium partner Norton Rose Fulbright details the key questions companies should address when they are the victims of a ransomware attack.

Botnets:

This short article explains what botnets are and why they are a matter of concern today.

To read any specific article, please click on its title. You can also download the full newsletter by visiting the JLT Specialty website