26 August 2015News

Cyber risk now a big cause for concern in Bermuda

Cyber risk has emerged from nowhere to be ranked as the number three most worrying risk in Bermuda for re/insurance industry professionals.

It had never previously been cited as a concern in the annual PWC/CFSI Insurance Banana Skins survey before its appearance this year.

Market conditions were seen as the greatest risk or ‘Banana Skin’ in Bermuda, followed by regulation then cyber risk.

Arthur Wightman, PwC Bermuda leader and Insurance leader, said: “As an industry that handles large amounts of other people's money and personal data, insurers are prime targets. As a result cyberattacks and data breaches are seen as especially urgent by the industry both from the standpoint of a threat but also as an opportunity.

“With material losses now in the billions, the demand for insurance to cover cyber risk has risen considerably.”

Globally, regulation emerged as the overall top risk for participants for the third successive time.

The Banana Skins survey seen sampled 806 re/insurance practitioners and close observers from 54 countries, including 18 in Bermuda, to find out where they saw the greatest risks over the next two-to-three years.