In a series of predictions from CyberCube published this week, Pascal Millaire, CEO of CyberCube claimed many traditional reinsurers have not seen cyber as an area of growth but 2024 will lay the groundwork for future growth of capital.
He said: “As reinsurers look at traditional lines of insurance being transformed by internet-connected risk, as well as the opportunity to participate in a rich new line of insurance, those reinsurers who were hesitant to dip their toe in the waters of cyber will increasingly see the imperative to do so.”
The wide-ranging predictions include expectations that there will also be further development of the insurance-linked securities (ILS) sector to create a long-term sustainable and thriving marketplace. While there will be an increase in the frequency of cyber attacks fueled by the proliferation of Artificial Intelligence (AI), the insurance sector will work more closely with SMEs to address their needs. The report forecasts that insurers and the public sector will combine to strengthen societal resilience to major cyber events. For the broking sector, those companies that create a comprehensive cyber strategy will set themselves up for a successful 2024.
Admiral (ret.) Michael S. Rogers, former Director of the NSA and Commander of US Cyber Command who is on CyberCube’s board of directors, noted that traditionally, attackers have focused on the bigger players, but the proliferation of attacks is increasingly focused around small and mid-sized entities, regardless of the sector. “With the SME market becoming increasingly targeted, the insurance industry will need to work with companies even closer to create a more robust cyber risk mitigation strategy across the board,” he said.
Other contributors to the report include board member Michael Millette, Managing Partner at Hudson Structured Capital Management Ltd.
CyberCube’s report is now available.
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