General Insurance Article - Cyber insurance as a risk mitigating tool

 Key highlights include:

 European corporates, SMEs, and financial institutions are facing increasing exposure to cyber attacks, with ransomware, data breaches, and supply chain disruptions becoming more frequent and severe.

 Cyber risks constitute one of the largest emerging threats to banks and a potential source of financial instability.

 Cyber insurance is gaining traction as a strategic complement to internal cybersecurity measures, especially as firms seek to mitigate potential financial, legal, and reputational losses.

 While adoption is increasing among large banks and corporates, penetration among SMEs remains low as a result of cost, awareness, and policy complexity.

 "Cyber insurance can help mitigate financial losses generated by malicious and non-malicious cyber threats, especially for entities with limited defenses in place", says Mario De Cicco, Vice President, Global Insurance and Pension Ratings at Morningstar DBRS.

 "However, because of the dynamic nature of these risks, the fast-changing operating environment, and the potentially high financial impact of cyber events, (re)insurance companies need to prove their capability to effectively assess and price cyber risks".
  

 Morningstar DBRS Cyber Insurance as a Risk Mitigating Tool