Insurers must embrace the reality of cyber – AXIS Insurance cyber boss

So-called “black swan” cyber events—which are difficult to see coming or how far and wide they will spread once they do impact a company—are becoming increasingly more likely or more severe. But insurers must accept the reality of their role in protecting companies from the fallout.

That is according to Dan Trueman, the global head of cyber at AXIS Insurance, who, in an in-depth article exclusive to Intelligent Insurer, makes the case that insurers must adjust the way in which they think about covering such events.

He stresses that companies’ digital and physical assets begin to merge in ways that were not possible even a few years ago. As such, cyber events are leading to business interruption in ways that were never foreseen or appropriately accounted for in most of today’s commercial insurance products.

Trueman asserts that insurers need to adjust. “Insurers need to create cyber products that cover both a company’s digital assets—those which are most likely to be directly targeted by hackers—and its non-physical assets (such as intellectual property and corporate reputation). The narrowness of most cyber product offerings doesn’t allow for the proper transfer of risks between a company’s digital assets and its physical assets,” he said.

“The evolution of risks from tangible to intangible assets is creating new coverage gaps that insurers must protect against if they are to fulfil the needs of their insureds.”

For the full article called ‘The changing face of cyber insurance’ click  here.

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