As the world digitizes, the frequency, severity and sophistication of cyber incidents are increasing along with the dependency on technology.
Cyber criminals have already demonstrated their ability to disrupt supply chains for businesses around the world and cripple critical infrastructure, as with the recent Colonial Pipeline attack that shut down the fuel supply serving the southeastern United States.
Meanwhile, the steadily increasing adoption of cyber insurance means that more companies have protection, but that aggregate cyber risk is expanding for the insurance industry.
Chubb’s new whitepaper, Catastrophic Cyber Risks – A Growing Concern, examines several types of systemic risks that, particularly in combination, have the potential to escalate into catastrophic events.
Providing a stable market for cyber insurance while accounting for the potential scale of these risks will require new solutions at the macro, societal level, as well as in the product offerings of individual insurers.
“This paper serves as a call-to-action for all stakeholders to work together to evaluate and address the changing nature and potential impact of these risks. Our goal is to set an example and provide a new framework that accounts for these boundless exposures that have the potential to affect organizations, governments, and citizens simultaneously.”
Michael Kessler, Vice President, Chubb Group and Division President, Global Cyber Risk Practice
Chubb President and Chief Operating Officer John Keogh recently participated in a roundtable discussion with BritishAmerican Business (BAB), where he discussed two critically important and timely topics – the rising threats of cyber attacks and runaway litigation. John’s comments on the evolution of systemic and catastrophic cyber risks in particular underscore Chubb’s commitment to addressing this rapidly evolving, global issue.