RMS introduces ‘cyber-physical’ modelling in response to rising threat
Risk modelling and analytics firm RMS has expanded its range of cyber models to include scenarios where cyber-attacks can cause physical damage to property.
Building upon the existing suite of cyber models which focus on attacks against IT systems, RMS believes this will allow property re/insurance to manager this growing risk for the first time.
RMS suggests that cyber attacks intended to inflict physical damage are on the rise, and have emerged faster than insurers’ ability to update policies.
Five new risk scenarios have been identified, including cyber-induced fires in commercial office buildings; triggered fire in industrial processing plants; triggered explosion on oil rigs; cyber-enabled marine cargo theft from a port; and regional power grid outages.
This poses a systemic threats across portfolio as there are potentially multiple lines of business affected, the firm says.
“It is now a peril that can cause losses in traditional property insurance policies which are either ambiguous or silent about whether they will pay out for cyber-triggered losses,” RMS said in a press release.
Andrew Coburn, senior vice president of emerging risks at RMS, added: “In the past two years, we have seen attacks that have damaged industrial plants, shut down building control systems, and caused power grid failures – all achieved by hackers targeting control systems that are linked to the internet.
“Insurers have begun to understand the risk of cyber-attacks on information technology (IT) systems, for example financial theft, data extraction and cyber-extortion. But with the rise of the Internet of Things, more devices are connected to computer networks which opens up new vulnerabilities for hackers to exploit. They can target operational technology, and thus the essential fabric of any business – even its bricks and mortar.”
Today’s top stories
Chubb CEO condemns brokers’ ‘abusive’ behaviour
Terrorist attacks surge worldwide in 2016
JLT Specialty hires senior vice president from Aon in US
CNA general counsel to retire after 23 years
Alliant buys California firm to expand MGA division
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze