Only 5% of cyber losses are insured, estimates Christian Fuhrmann, chief executive of global clients/North America, Munich Re. Very complex by nature and continuously changing, cyber insurance is one of the biggest challenges for insurers, he said.
Talking with A.M. Best in an interview at Monte Carlo, he also underlined the huge variety of attack incidents in the cyber field, starting with denial-of-service attacks, malware, viruses, ransomware attacks such as NotPetya, WannaCry, etc. “What you can observe is, of course, an increasing frequency and also severity,” he said.
With such diversity and complexity, in an interconnected and globalized business world, the aggregation risk of cyber insurance ‘is the elephant in the living room.’
“On the other hand, I think it’s very positive that our industry is taking a brave approach to the issue and is offering solutions without having robust data in any sense,” Fuhrmann said.