Business interruption cyber risks demand more attention from insurers as globalization continues to worsen their impact, a panel of experts argued recently.
BI coverage has drawn heightened attention in recent months due to the coronavirus pandemic and its ongoing disruption of commerce around the world. Cyber risks have created potentially catastrophic risks for far longer, however, and technology’s advance continues to worsen their potential for global economic harm, ITC Global panelists said during a virtual discussion on Oct. 20. ITC Global is this year’s InsureTech Connect annual meeting.
“Business interruption has been becoming an important issue for years and years and years,” said panel moderator Michael Millette, managing partner of Hudson Structured Capital Management.
Michael Tannenbaum, executive vice president for Financial Lines for Chubb, said that business interruption involving cyber risks came to the forefront a few years ago, with the international WannaCry ransomware attack and the global NotPetya malware attack, which has been considered the most devastating cyber attack in history. At that point, he said, people started to understand the impact of Internet of Things connectivity, and the global financial risks of it breaking down. It will be even worse, he said, by 2025, when “there should be over 50 billion IoT-connected” entities on the web.
The 5G improvements that are expected to boost connectivity even further represent an advance that provides both economic opportunity but also more intense risk.
The 5G improvements offer “extreme advantage from a technology p ..
Support the originator by clicking the read the rest link below.
