Being prepared for the future

In many of today’s lists of the most relevant risks, climate change
and cyber often make it into the top three positions. What would you
say are currently the most important risks to pay attention to?

‘It is very true that climate change and cyber risks are of the most importance for companies. In fact, business interruption and cyber incidents are the top global risks, even ahead of natural catastrophes.’

What are some of the main forms of cyber risks and cyber losses that
a modern business has to deal with or be aware of?

‘This is a loaded question that is ever-changing since we are constantly expanding coverage types based on new perils that come up. But to give you an idea of the broad range of risks, we at Munich Re focus on privacy breaches and network security interruptions to first and third parties, and on business interruptions resulting from cyber-attacks such as ransomware, distributed denial of service attacks, or phishing.
Every year, we see an increase in business interruption losses due to cyber-attacks on supply chains and service providers. Since intruders are constantly looking for new and more sophisticated ways to infect software and hardware throughout the supply chain, we can expect these strikes to become more frequent and to have a more serious impact. This is why we consider BI insurance more important than ever.’

… and the consequences of these events?

‘Well naturally, as attacks continue to increase globally, the demand for more comprehensive insurance covers and services rises too. As a consequence, we see this modern digital transformation as a clear demand for new solutions from the insurance and reinsurance industry.’

Read the entire interview under Download.