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Reinsurers should be wary of cyber risks

by

Charles Mathieu

20 August 2019 13:30

S&P Global Ratings says that reinsurers will need to adapt quickly to the dangers related to cyber risks. Gold, the industry could take advantage of easily, according to the firm’s us ratings.

“We believe that reinsurers are well placed to exploit the commercial potential if they can develop cyberécosystèmes and improve the numerical modelling, while managing the risks of accumulation and cyberexposition “, said Johannes Bender, credit analyst at S&P Global Ratings.

Work to do

According to the firm rating, the human origin of cyber attacks, historical data and limited expertise in computer science makes it difficult for insurers and reinsurers.

“If the (re) insurers do not begin to filter their insurance portfolio for cyberexpositions or to manage, the losses could become significant and lead to a volatility in terms of capital and profit in the near future,” says S&P.

The company says, however, that the market of the cyberassurance will continue to grow over the next several years. By 2022, the gross premiums written could pass the bar of the us $ 8 billion (US$ b), then in 2018, they have been$ 5 billion US.

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