Slow progress on cyber
09 Mar 2017
There is frustration at the perceived slow progress of affordable, practical insurance protection for cyber related risks as insurance companies struggle to adapt to the pace of change, says Mr Marcus Pearson, Marsh's New Zealand Country Head.
In a foreword in the "Directors' Risk Survey Report 2016" published by Marsh and released last month, he said: “There are deep concerns about the potential for losses that hyper-connectivity brings as cyber threats move from defending against website defacements, denial of service attacks and data breaches to more serious attacks on cyber-physical systems controlling physical assets and critical infrastructure.”
Cyber attacks are perceived as the biggest external risk to New Zealand businesses for 2017. 79% of those surveyed rate the impact of a cyber attack on their organisation's strategic growth, operational efficiency and legal/contractual compliance as medium or high.
Mr Pearson said: “Cyber-attack did not even rank in the top five risks in our 2013 survey showing the speed at which this dynamic emerging risk is changing, at least in the minds of directors.”
Total losses (as a result of cyber attacks) are estimated to be between NZ$300 million (US$209 million) and NZ$400 million annually in New Zealand.
The report is based on the findings of a survey conducted by Marsh in the last quarter of 2016, in partnership with the Institute of Directors (IoD). The 2016 edition of the survey is based on data provided by 415 IoD members. Overwhelmingly the majority of directors sat on the boards of private companies in New Zealand, reflecting the nature of the country's SME economy. In addition, 46 directors of publicly listed companies participated as respondents.
- Asia Insurance Review