By Myra Knoesen
As cyber incidents continue to top the concerns of the financial services sector, there is an increasing urgency to bolster defences against these evolving threats.
With the horizon set on 2025, insurers are being pushed to reassess and refine their strategies to stay ahead of emerging cyber risks. FAnews recently spoke with Ryan van de Coolwijk, Business Unit Head: Cyber, Collectables, and Digital Distribution at iTOO Special Risks, to gain insights into how insurers are preparing for the next wave of cyber threats.
Strategies for emerging cyber threats
Given that the Allianz Risk Barometer recently highlighted cyber incidents as a top concern, insurers are adapting their approaches to address these threats effectively.
Van de Coolwijk explains, “As cyber insurers, we constantly need to keep an eye on the changing risk landscape to ensure that we can best insure our clients.”
The strategies being implemented include:
• Enhanced underwriting processes: the underwriting process is evolving to incorporate a broader view of risk beyond just the proposal form. This holistic approach allows insurers to proactively engage with clients about new vulnerabilities.
• Improved incident response: enhancing incident response processes ensures that insurers can act swiftly and decisively to mitigate damages during cyber incidents.
• Strategic partnerships: collaborations with leading security companies help insurers stay at the forefront of market developments and offer advanced solutions to clients.
To bolster resilience against the next wave of cyber threats, insurers are focusing on reflective underwriting, which incorporates emerging risks identified through claims and industry trends and utilising advanced risk management tools by partnering with security providers to access cutting-edge technologies for proactive threat detection and valuable client insights.
Integration of advanced technologies
The integration of advanced technologies is crucial for effective cyber risk management. Van de Coolwijk highlights that “Apart from the external posture assessment tools which are useful in their area but limited in their scope, the partnerships we are engaged in with security providers are enabling us to access advanced technologies and tools.” These technologies include:
• Proactive threat insights: providing clients with updates on developing threats and effective controls.
• Groundbreaking technologies: offering access to advanced defensive technologies at preferential rates.
• Market insights: sharing lessons learned from market-wide incidents to improve overall cybersecurity practices.
Policy updates and coverage options
Insurance policies are also evolving to address the changing cyber threat landscape. Recent updates to insurance policies include an expansion of coverage for business email compromise (BEC) and the inclusion of protection against physical damage from cyber-attacks, addressing the rise in fraudulent transfers and attacks on operational technology.
He also added that partnerships with cybersecurity firms play a vital role in combating future cyber threats. He emphasises, “I firmly believe that cyber insurance should be part of a wider ecosystem with cybersecurity firms and by no means seen as a replacement to security.”
