EU Risk Managers Question Cyber Insurance Effectiveness
European risk managers continue to question the effectiveness of cyber insurance, despite its potential to bolster the EU's economic resilience. FERMA, Howden, and Marsh have joined forces to address these concerns and foster a more robust, affordable cyber insurance marketplace.
A recent report by FERMA, Marsh, and Howden, titled 'Demystifying Cyber Insurance: Today's Trends & Tomorrow's Challenges', aims to clarify the role of cyber insurance in complementing, rather than replacing, strong cybersecurity measures. The report calls for a clearer distinction between cyber and crime coverage, suggesting blended solutions to address this gap.
The study, conducted by FERMA in collaboration with various companies, highlights key challenges in the cyber insurance market. These include concerns about exclusions, coverage gaps, claims handling issues, and low uptake, particularly among small and medium-sized enterprises (SMEs). Philippe Cotelle, chair of FERMA's Digital Committee, believes that the value of cyber insurance is often overlooked due to a lack of awareness and understanding.
FERMA, Howden, and Marsh have committed to constructive engagement with stakeholders to build a well-functioning and affordable cyber insurance marketplace. The report emphasizes the need for risk managers to assess cyber exposures, review policies, and collaborate with brokers for better coverage. Charlotte Hedemark, President of FERMA, advocates for a collaborative approach to address cyber risk comprehensively and sustainably.
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