Snapshot:
- Automating operations provides productivity gains and efficiency, but also introduces new risks, including cyber-physical damage exposures.
- New insurance solutions can help to address the coverage gap between cyber and property policies for physical damage to tangible property arising from a cyber-attack and resulting business interruption loss.
Organisations are increasingly relying on technology in a rapidly evolving and competitive global business landscape. Automating operations provides exceptional productivity gains and efficiency, but also introduces a new array of risks – including cyber-physical damage exposures.
Organisations have much to lose from operational disruptions that could carry significant financial and reputational costs, which along with impacts to downstream supply chains, present high-leverage situations to the advantage of cyber-criminal groups.
As the nature of cyber threats evolves, so too must strategies to manage these risks.
Traditional cyber insurance solutions do not typically provide cover for physical damage to tangible property nor any business interruption revenue loss arising therefrom. Meanwhile, the global property insurance market has largely moved towards applying explicit cyber exclusions following several high-profile cyber-attacks that resulted in substantial property insurance policy losses[1] and the introduction of a Lloyd’s mandate in 2020 to address ‘silent cyber’ risks.[2]
The maturing global cyber insurance market has however evolved to offer new solutions to address the widening coverage gap between cyber and property policies for physical damage to tangible property arising from a cyber-attack and resulting business interruption loss.
Traditional property and cyber insurance policies can now be suitably complemented through new and enhanced cyber property insurance solutions to help organisations manage and transfer the risk of physical damage caused by a cyber-attack.
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As organisations navigate the complexities of emerging cyber-physical exposures and the nuances of risk transfer solutions, Aon helps to:
- Quantify credible cyber-physical scenarios that could impact business operations, stress test legacy coverages, and identify potential cyber physical gaps. Learn more > Cyber Impact Analysis
- Identify and address limitations under current ICS/OT network cyber-security controls. Learn more > Cyber Security Assessments
- Advise on best practice for representation of an organisation’s risk profile to the insurance market. Learn more > Cyber Insurance Solutions
With our holistic cyber offerings, Aon acts as a trusted advisor helping organisations to make better decisions to drive an optimal risk transfer outcome.
[1] Insurance Business, Pharma giant Merck and insurers settle $1.4 billion NotPetya case, January 2024
[2] IRMI, End of Silent Cyber in Property Insurance, January 2024