Atlas Magazine March 2015

Digital risks, a new challenge for insurers

Insurers are accustomed to coping with both order and disorder: terrorism, financial crisis, natural catastrophe,... They feed so much on risk that they end up, except for special cases, quantifying, modeling, underwriting and managing.

Faced with the growing power of the internet, these insurers are once again required to upgrade and take advantage of a tool that is upsetting the established order. It is a genuine revolution which lies ahead of them with a new organizational model and an entirely unprecedented future risk mapping: hacking, e-reputation, data and terminal security,...

The cyber-attack, whose estimated cost amounts to 3.2 billion USD and that is sustained by Sony in 2011 with the robbery of data belonging to 100 million users, is an example of the new risks both customers and insurers are faced with. Sony's loss also sheds light on the level of capacity required to cover these risks.

For now, insurers’ offer is building up. This pioneers’ market which includes a few big names in the industry is struggling to assess the risk in its entirety and to come up with tailor-made purely insurance-based answers.

According to a study by the Zurich group, some cyber-attacks are likely to trigger a systemic shock comparable to that caused by the 2008 financial crisis.

Extensively discussed at the meetings of FANAF’s 39th General Assembly held last February in Antananarivo, digital risks will be once again on the agenda of the Casablanca second meeting due from 15 to 17 April 2015.

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