A new survey by London-based think tank Centre for the Study of Financial Innovation claims that cyber risk is the top risk faced by insurers in North America and Bermuda.
Globally, the survey found that regulation ranked first among risks, followed by the macroeconomy and interest rates, with cyber ranking fourth. However, respondents from North America and Bermuda ranked cyber risk first with regulation and interest rates following.
According to the report, “The most striking new theme to emerge from this survey is the high level of anxiety about cyber risk, specifically software failure and data security breaches. The chief concern is the security of the ever-growing volumes of data that insurers hold in cloud-based storage systems. For many, major breaches are inevitable; the question is how much damage they will cause.”