Cyber risk was likened to a bar of soap at the Captive Insurance Companies Association (CICA) International Conference, because it’s “always slipping away”.
Panellist Michael Douglas, director of business development for captive insurance at Aon Risk Solutions, made the comparison as the panel discussed how the cyber threat is transforming from simple credit card fraud into major data breaches at large corporations.
Stephanie Snyder, national sales leader for Aon's professional risk solutions practice, added that the cyber threat is further complicated by the identity of bad actors, who aren’t always external criminals but are often employees of the business.
Peter Mullen, CEO of captive and insurance management within Aon’s global risk consulting group, said captives have reacted accordingly. “In our last survey, 1 percent of clients were putting cyber into their captives, however, that has since increased to 2.5 percent.”
He went on to reveal that 60 percent of Aon clients do not buy cyber coverage. In addition, he said that the number of clients that are considering accessing cyber coverage through captives has increased three-fold.
Alec Cramsie, in charge of underwriting US risks for Beazley Group’s technology, media and business services team in London, offered up information as the key to figuring out the right cyber solution.
He explained that data and analytics can provide guidance on the financial impact of the decisions about cyber risk and insurance, including on how different programme structures can affect specific organisations.
