An annual risk survey has identified growing concern for cyber risk in Europe, as well as an increasing risk of business interruption (BI) related to technology.
Cyber incidents were ranked as the third most worrying risk globally in Allianz’ Risk Barometer 2017, which surveys 1,200 risk experts from more than 50 countries. This compares with 15th just four years ago.
Cyber was also seen as the top risk in the US, UK and Germany, and was seen as a rising risk in Australia, France and Spain. Increasing data protection and privacy laws in these countries were said to be one of the factors behind the increased concern.
For example, European companies will have been preparing for the EU’s General Data Protection Regulation (GDPR), which will apply from May 2018. These preparations will no doubt have seen the boards of many companies come to realise the true extent of cyber risk and ask questions about loss mitigation and protection.
Cyber driven BI
The Allianz report also showed that cyber risk touches on a significant portion of a company’s exposure map, going way beyond the issue of privacy and data breaches. In fact cyber risk could trigger half of the top 10 global risks in the Barometer, Allianz said.
In particular, cyber risks were linked to the top ranked risk overall, that of BI. Allianz noted that non-damage business interruption was of growing importance, with cyber ranked as the second biggest trigger of non-damage business interruption.
In part, this probably reflects the growing awareness of cyber risk among manufacturing companies, which is a trend we have seen at JLT. Cyber insurers are also seeing more BI claims with the expansion of BI cover under standalone cyber insurance policies.
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For further information, please contact Sarah Stephens, Head of Cyber, Content and New Technology Risks on firstname.lastname@example.org