2021 ICS Cyber Security Conference

Cyber is a risk equation. It takes into account the likelihood of successful attacks and the impacts and consequences those attacks can have. However, the variables in the cyber environment are what make it so unpredictable. The lack of historical data, the explosion in connectivity, the dependency on the digital world and a wildly changing operating environment make traditional risk models obsolete. This is why insurance has struggled so intensely with cybersecurity. As a result, many insurance companies do not offer cyber insurance, and if they do, it is often narrowly defined and filled with exclusions that the policies are non-competitive.
 
Cyber is no longer staying in the digital world. The rise of attacks on industrial operations and critical infrastructure are resulting in real-world impacts. No longer is cyber about stealing data; it now impacts the flow of oil, the functions of machinery, the navigation of vessels and the core operations of businesses. This translates into what now is called “cyber-physical”, the real-world operational and safety risk posed by industrial cyber attacks, and the latest buzzword around board rooms. 
 
This is a game-changer for insurance. The consequences of a cyber-physical event can be devastating and insurance can no longer ignore the issue. Insurance companies need to be able to tell whether an event was caused by a cyber attack, be able to assess damage and impact and develop the ability to underwrite an ever-changing risk environment. This will take rethinking risk and the tools used to assess, underwrite and manage risk. 
 
This presentation will address the emerging challenges of industrial cybersecurity for the insurance industry and the new tools, solutions and roles the industry must adopt to adapt to cyber risk.