Cyber insurance experts push for government support to cover risks

TLDR:

• Marsh McLennan and Zurich Insurance Group urge government intervention to address $900B cyber insurance coverage gap.
• Current insurance market may not be able to absorb economic losses due to cyberattacks.

Summary:

Marsh McLennan and Zurich Insurance Group have released a white paper calling for government collaboration to tackle the increasing risk of catastrophic cyber events and a significant coverage gap. They highlight that the cyber insurance market is experiencing substantial growth and is projected to surpass $28 billion in gross written premiums by 2027. Despite this growth, there exists a $900 billion risk protection gap between insured losses and economic losses caused by cyberattacks, mainly affecting small- to medium-sized businesses that are either underinsured or lack coverage altogether.

The whitepaper emphasizes the need for incentives to enhance industry resilience and address the insurance needs of smaller businesses. The White House has acknowledged the issue and is working on a policy proposal to address catastrophic cyber risk, aligning with the national cybersecurity strategy. The U.S. Treasury Department’s Federal Insurance Office and the National Cyber Director are collaborating to explore ways in which the government can support communities through insurance in the event of a major cyber incident.

Overall, the call for government intervention is aimed at closing the substantial coverage gap in the cyber insurance market and mitigating the potential economic impacts of cyberattacks on businesses of all sizes.