Cyberisks have moved to the top two positions of Airmic member concerns, according to a survey whose full findings will be unveiled at the annual conference. It is the first time cyber has had such a high profile, displacing long-standing risk manager ‘stay awake at night’ issues such as reputation and business interruption.
The three areas of risk that give members the most worry are;
- Cyber causing business interruption;
- Cyber causing loss or theft of personal data; and
The survey finds that cover for all three types of risk is among the more difficult to acquire, with over half of respondents lacking cyber insurance. Yet under 20% have a high level of confidence in their organisations’ ability to manage these risks.
The annual survey shows a continuing shift away from concerns about physical risks towards intangible perils, combined with frustration at the insurance market’s inability to cover the most business-critical exposures.
These are some of the key findings following analysis of 134 responses to the questionnaire sent out in May, which also identified growing disquiet with broker relationships. One of the most positive signals to come from the exercise is that the c-suite appears to be engaging with risk as never before, giving members unprecedented support.
The Insurance Act continues to occupy members’ attention, in particular the information-gathering demands that it makes on policyholders.
“The findings support Airmic’s view that, although the market has responded to the demand for new products, a lot more needs to be done to satisfy the needs of our members, with cyber right at the top of the list,” commented Airmic CEO John Hurrell.
The full survey results will be published on Tuesday June 7 at the conference, which takes place in Harrogate between June 6 and 8.
Other reports to be published at the event in support of members cover the topics of scenario analysis, innovation within the insurance market, employee benefits, ERM and the role of risk and insurance in mergers and acquisitions. Airmic will also be unveiling a model clause to aid compliance with the Insurance Act.