Page 33 - Insurance Times January 2018 Sample

EMERGING GLOBAL

SCENARIO OF

CYBER RISKS (RE)

INSURANCES

A) Introduction: Men have invented sophisticated Revolutionary Information
Technologies which enslave men to day with unprecedented
'CYBER' is a term derived from 'CYBERNETICS' which means
comparative study of automatic communications and control dependence on Electronic Mechanisms.Large scale
of functions of living bodies and in mechanical electronic disruptions are caused by these Cyber Risks.
systems such as in computers.
It is a serious challenge to Insurance and Reinsurance
Underwriters: UNDERWRITE CYBER RISKS ONLY AFTER
Cyber Risk Management is evolving as a specialized science
FULLY UNDERSTANDING CYBER RISKS. Risk Management of
which does research on volatile issues arising out of
revolutions in all Information Technologies. Computer all kinds of Cyber Risks is the main thrust in specialized Cyber
Risk Management not by 'Trial and Error' but by 'Trust and
Programming, Artificial Intelligence, Computer Virus and
Advanced Technologies'.
Voluminous and valuable data of business houses can be
damaged, disrupted and lost in events of Cyber Crimes of
Hackers. No business is safe from determined Hackers who Cyber Terrorism is another area where newer challenges are
use their skill for extortions. Ransomware, Wannaery and to be faced.
Petrawrap outbreaks have been known to cause 'Crippling
Disruptions' which can be inflicted across all sectors of all Various types of Cyber Risks with special characteristics of
industries! newer kinds of claims need to be surveyed and handled in
absolutely untraditional ways by all concerned - insurers,
reinsurers, surveyors, brokers etc.
About the author

Again Rating Technologies of Insurable Cyber Risks are to
K. L. Naik be evolved in the light of past events of losses, kinds of
Managing Director
Xperitus Insurance Brokers Pvt.Ltd exposures and little awareness of Insureds - Insurers -
Reinsurers and Brokers.

The Insurance Times, January 2018 33

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