Page 77 - revue RDV 2024 (15_04)

A R T I C L E S 77

Protecting Against Cyber

Risks, Reducing Cyber

Impacts, and Addressing

the Cyber Protection Gap

Cyber risks are growing in frequency, severity and variety, and insurers The Global Federation of Insurance Associations (GFIA) explored the
and governments are thinking about how to address related protection implications of the cyber protection gap in its 2023 report Global Protection M. Robert Neill
gaps. The increasing presence of technology and exponential use of Gaps and Recommendations for Filling Them. GFIA defines the cyber Vice-président, Chargé des
data in almost all aspects of life is a global phenomenon. While advances protection gap as the difference between the total economic exposure of Affaires Internationales, et
in technology create many opportunities they also significantly increase first-order losses from cyber-attacks (e.g., damaged industrial facilities, Conseiller Juridique
exposure to cyber risks. bodily injury, software replacement and ransom payments) and the American Property and
Casualty Insurance
losses currently covered (approximated with the global premium volume
Association (APCIA)
The number, severity and types of cyber-attacks have grown globally. for cyber insurance). Second-order losses that are frequently observed,
Insurers and other private and public stakeholders are working to address indirect consequence of cyber-attacks (e.g., reputational damage) are
the increasing need for cybersecurity and related financial protection. difficult to quantify and are not included to ensure comparability with the
However, the market is still relatively nascent, especially in terms of other protection gaps. The United States is the largest cyber insurance
the evolving regulatory environment and the developing awareness market, accounting for roughly 70% of global cyber gross written premium
of cybersecurity and prevention measures and in terms of the rapidly (GWP).
evolving nature of both the technological landscape and the nature of
the threats, for example the emergence of ransomware attacks in recent Although increased loss ratios in recent years have made insurers
years. reconsider their cyber underwriting policies and risk appetite, the supply