Page 20 - Insurance Times October 2019

catastrophes for the insurance sector. He has
recommended that the industry build a comprehensive,
common global scale to assess cyber-related incidents. It
would be very helpful to have measurement and modelling
tools. Unless we can model, it's very difficult for us to
provide coverage. We have scenarios but not modelling
tools.

According to the report, cyber security experts and top
executives in the financial sector as well as representatives
from the European Central Bank (ECB), the Federal Reserve
and the central banks of Canada and Japan had convened
in Paris to assess the risk. Cyber security threats are a
"major and systemic risk" to the financial sector as attacks
are more frequent and public action on cyber-attacks in the
sector is "sub-optimal." Objects of Affection
Not surprisingly almost three-fourth of
$600 bn a year: financial services companies suffered a cyber
While the cost of cyber risks has been small until now, the theft or faced a cyber attack
panel agreed it was only bound to increase. The cyber risk
could exceed $600 bn per year "in the worst-case scenario." % age of victims
That compares with the yearly cost of natural catastrophes, Fin Servicees & Insurance 72
which he said is about $230 bn. The cyber risk "would
dwarf it". So it gives you a size of the risk. Still, "the demand Pharma & Chemicals 44
for cyber risk coverage well exceeds the supply and this is
an issue," calling for a 're-balance' of the situation. Oil, gas & utilities 37

The lack of aggregated data monitoring incidents is partly Social media platforms are cyber
responsible for the shortage of coverage. The sector needs criminals' preferred choice
to coordinate and also to partner with authorities "to build
Social media platforms like Facebook and WhatsApp are
databases and a taxonomy to share information," or a
emerging as new Public Square for criminal deception by
common vocabulary for policy makers and companies to
cyber criminals. A study 'Current state of Cybercrime -2019'
use in assessing cyber-related impact on the financial or
released by RSA Security has found that social media fraud
industrial sector. Cyber security is a shared responsibility
increased by 43% in 2018. According to the RSA report,
and companies must invest to have better protections and
cyber criminals are increasingly relying on Facebook,
understanding of the risk.
Instagram, WhatsApp and other legitimate social media and
messaging platforms to communicate with each other and
As computer systems around the world are bleeding from sell stolen identities, credit card numbers and other ill-
the onslaught of computer virus 'WannaCry', authorities in gotten gains. The increasing volume and growing frequency
India are still trying to assess the damage done by the of cyber attacks across India have failed, though, to stir
ransomeware-worm. As IANS reported that police Indian companies into action. Two out of three companies
computers across 18 units in Chittoor, Krishna, Guntur, spend less than five per cent IT budget on bolstering their
Visakhatpatnam and Srikakulam districts of Andhra Pradesh cyber defences.
were infected, there is no definite word on the extent of
this cyber attack in India yet. Take a look at how India Inc Legitimate platforms ease illegitimate
has dealt with cyber attacks so far. While the full impact of
the recent attack remains unclear, how India Inc has fared transactions
in similar situations in the past warrants a look. The report says that given the ease of use, absence of fees

20 The Insurance Times, October 2019