Page 27 - BIPAR Annual Report 2020_EN

Commission will assess where the EU legislation can be As a follow up to the dialogue with the insurance industry which resulted in this EIOPA Report, EIOPA organised a
effectively applied, ii) for crypto-assets that are currently workshop on cyber insurance in April 2019 in which BIPAR participated. More than 100 representatives from the
not covered by the EU legislation, the Commission is industry, consumers, regulators, think tanks and other stakeholders also participated. The key messages resulted from
considering a possible proportionate common regulatory the discussion are:
approach at EU level. • There is a clear need to address silent cyber risk in traditional policies and remove contractual uncertainty.
• Regulators could act as enablers by setting clear standards on cyber security and cyber risk aligned with the needs of
BIPAR also participated to the webinar organised by the SMEs and help raise awareness.
Commission (DG FISMA) on 19 May 2020 in the context • A “Cyber” database with anonymised data on cyber incidents, based on common definitions to facilitate data collection
of the consultation on digital operational resilience for and data sharing, should be considered.
financial services and of the Digital Finance Strategy in
general. Furthermore, in September 2019 EIOPA published its Report on “Cyber Risk for Insurers – Challenges and Opportunities”.
The Report states that insurers play a key role in enabling transformation to the digital economy. Increased use of
Cyber Insurance & EIOPA big data and cloud computing make insurers increasingly susceptible to cyber threats, considering the amount of
confidential policyholder information insurers are possessing. The report further identified the most common cyber
EIOPA published in August 2018 its Report “Understanding threats faced by insurers and concluded that a common set of definitions on cyber risks would enhance the cyber
Cyber Insurance - A Structured Dialogue with Insurance resilience of the insurance sector. Further actions could be streamlining of the cyber incident reporting frameworks by
Companies”. The Report provides insights -based on a creating an EU-wide database.
survey among (re)insurance groups- on the functioning,
growth potential, challenges and risks of cyber insurance in BIPAR is monitoring developments related to cyber security and cyber insurance at EU level. The increased digitalisation
Europe in the context of the expected growing importance in our sector increases the extent of cyber-attacks and their impact, and the fact that small and medium-sized businesses
of cyber insurance in the portfolios of (re)insurers. EIOPA are increasingly exposed to cyber risks, dictates the need for good cyber security practices. Insurance intermediaries
explains that cyber risk is a growing concern for in¬stitutions, have an important role to play in this respect.
individuals, and financial mar¬kets. The increasing number
of cyber incidents, the continued digital transfor¬mation In October 2018 BIPAR prepared together with Insurance Europe (the European federation of insurers) and FERMA (the
and new regulatory initiatives in the European Union are European federation of risk managers) the brochure “Preparing for cyber insurance” with the aim of creating awareness
expected to raise awareness and to boost the demand for on risk management and possible insurance solutions for cyber risks.
cyber insurance. In short, the Report found that:
- There is a clear need for a deeper understanding
of cyber risk, both on the supply and demand side, in order
for the European cyber insurance industry to develop
further. This relates not only to the assessment and
treatment of risks in new cyber insurance propositions, but
also to the understanding of clients’ own needs.
- In terms of products and services, coverage is
mainly focused on commercial business. However, interest
in providing cyber insurance for individuals is increasing
as technology such as the Internet of Things (IoT) develops
and consumers are increasingly exposed to infringement
of digital services.
- Lack of specialised underwriters, data and
quantitative tools are key obstacles to the development of
the industry and the provision to the economy of proper
coverage.
- Regulation may be welcomed by the industry in
a moderate fashion, as it could help to address some of
the identified challenges notwithstanding the need for
compliance with the Solvency II Directive.

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