Glyn Thoms, Head of FINEX GB Cyber & TMT, discusses the latest movements in the Financial Lines Market and in particular Cyber.
Global FINEX- Cyber Update
Global FINEX- Cyber Update
Hear from our experts and learn more about the latest insurance marketplace trends
Transcript:
0:03
Welcome to WTW's Global Marketplace Insights series, where our
experts bring you the latest risk and insurance perspectives.
0:19
Looking ahead to 2024, we know that cyber risk and data protection
issues remain high on the corporate agenda.
0:27
We saw in our Cyber D&O report which was launched in June that
cyber and data protection risk issues ranked in the top three for
most organizations across most industry sectors and
geographies.
0:39
We also know that cyber insurance penetration globally remains
relatively low, as low as 5 to 10% in some regions.
0:46
But at the same time, we have a cyber insurance market with huge
aspirations for growth with predictions of 20% to 25% compound
annual growth rate over the next two to three years.
0:57
So what are some of the challenges we face?
1:00
Well, systemic risk will continue to present a challenge and
it's something which the insurance market has to get their arms
around.
1:06
The ability for the insurance market to be able to understand,
model and quantify systemic and aggregation risk issues is going to
be absolutely critical in driving the market in the longer term,
being able to open up the reinsurance market and also drive new
forms of capital into the market.
1:26
Regulation is going to continue to play a vital role. We've
seen during 2023 the SCC introduced some new rules and regulation
around notifications of cyber incidents and we've also seen new
rules and regulations coming in France on a similar topic.
1:37
We know that regulation is going to continue to be important and is
vital in terms of driving best practice.
1:44
Finally, new technologies.
1:45
There's been a lot of talk about AI in 2023 and I think most
organizations are still really getting to grips with what the
opportunities are for AI and how it can help drive business
operations in efficiency.
1:57
But whilst it creates opportunities, these opportunities don't
come without risk and it's going to be vital to understand the
extent to which AI can amplify existing risks and also create new
risks, as these are risks that ultimately will need to be managed
and insured.
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