Brace yourselves, insurance behemoths, for the cyber tide is turning! CyberCube predicts in their recent report that 2024 will see reinsurance titans flexing their muscles, actively pumping up the cyber capacity pool.
CEO Pascal Millaire emphasized the shift in perspective among reinsurers, stating that those hesitant about entering the cyber domain will recognize the imperative to do so as traditional insurance lines evolve due to internet-connected risks. Millaire expects 2024 to establish the foundation for future capital growth in the cyber insurance sector. 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 predictions put forth by CyberCube encompass various facets of the industry. Among these expectations is the anticipation of further development in the insurance-linked securities (ILS) sector to create a sustainable marketplace. The report also forecasts an increase in cyber attacks driven by Artificial Intelligence (AI). This expectations is that this will prompt the insurance sector to collaborate more closely with small and medium-sized enterprises (SMEs).
“Increasingly Targeted”
Admiral (ret.) Michael S. Rogers, a board member at CyberCube and former Director of the NSA and Commander of US Cyber Command, highlighted the shifting focus of cyber attackers towards smaller entities across sectors. “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.
The report also emphasizes the collaboration between insurers and the public sector to enhance societal resilience to major cyber events.
Source: Additional reinsurers will enter the cyber market in 2024, predicts new CyberCube report
CyberCube’s full report: Cyber Predictions 2024.
Other News: Unprecedented Cyberattack and The Role of Insurance(Opens in a new browser tab)