A.M. BestTV at RIMS: Mass Cyberattacks Would Cross Coverage Lines, Put Insurers to Test, Say Cyber Specialists

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode from the RIMS conference in Philadelphia, PA, a panel of insurance professionals that specialize in cyber insurance say the growing number of widespread attacks, which begin with cyber intrusions, could put insurers' capacity to the test, entangle many types of property coverage and might lead to the prospect of war exclusions. Click on http://www.ambest.com/v.asp?v=rims4417nc to view the entire program.

“Cyber liability is a rapidly evolving field. It is not just cyber liability, but also cyber risk,” said Martin Frappolli, senior director of knowledge resources, The Institutes. “Things are occurring on a couple of fronts. People and organizations have a greater awareness of risk, and both are beginning to grasp it is not just run out and insure, but to learn how to mitigate the risk.”

Scott Stransky, assistant vice president, AIR Worldwide, addressed the enormity of the problem.

“If you are looking at a single risk in your portfolio, maybe you could handle that, but when you start to look at four percent of an entire portfolio going down and potentially having a claim all at the same time, this is starting to really scare the insurance industry. It is something that maybe they were not necessarily prepared for over the past few years, but it is something they really need to think about going forward,” he said.

Additionally, Stephanie Snyder, U.S. cyber sales leader, Aon Professional Risk Solutions, said she believes that organizations need to accept that it is not just a problem for them alone. “Organizations cannot just think about the resiliency of their own organization. They have to take it a step further, and think about those organizations that they are partnering with, and their supply chain,” said Snyder.

For full video coverage of the RIMS conference, including exclusive executive interviews, visit http://www.ambest.tv/rims17.

Recent episodes of ^A.M.BestTV include:

RIMS: Mergers &Acquisitions Appear Poised for New Cycle, Say Insurance Execs: At the RIMS conference, a panel of insurance executives said industry merger & acquisition activity dipped during the most recent election cycle, but may be poised to resume: http://www.ambest.com/v.asp?v=rims3417nc.
RIMS: It's Not Just the Risk, It's the Problem the Risk Creates, Say Property/Casualty Leaders: At the RIMS conference, a panel of insurers and brokers examines the commercial property/casualty risk frontier and sees an industry racing to keep up with technology and customer demands: http://www.ambest.com/v.asp?v=rims2417nc.
RIMS: Going Forward on Data and Analytics, It’s Adapt or Die, Experts Say: At the RIMS conference, Jim Weiss, director of analytic solutions, ISO and Ben Fidlow, head of core analytics, Willis Towers Watson, said insurance organizations and professionals should become comfortable with risk analytics and numbers, or face the prospect of short-term obsolescence: http://www.ambest.com/v.asp?v=rims1417.
Risk Managers Gather at Birthplace of U.S. Insurance: At the upcoming annual RIMS (Risk Management Society) conference, taking place April 23-25, in Philadelphia, PA, where U.S. insurance industry roots run deep: http://www.ambest.com/v.asp?v=rimspreview417.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.