For the past decade, the duty of corporate directors to oversee corporate risk has become more and more pronounced. Over the past several years, however, cyber and data handling risks have emerged as perhaps the most challenging of the areas requiring board oversight.
For insurance company Chief Risk Officers, evolving and increasing cyber risks will be hard to ignore in 2017. In addition to fending off cyber-attacks like every enterprise must, insurance companies also will face new legal and regulatory cyber challenges by way of a groundbreaking regulation from New York’s Department of Financial Services and possibly a Model Law from the National Association of Insurance Commissioners. Meanwhile, insurers are writing more cyber coverage, triggering concerns about cyber events simultaneously affecting multiple insureds across the insurer’s portfolio, leading to massive aggregated losses. While addressing these “noisy” cyber risks will not be an easy task from a risk management perspective, a more subtle and potentially more dangerous cyber risk – a “silent” cyber risk — likely will prove to be even more challenging for today’s CROs. [Read more…]