Featured Product

    EIOPA Report Confirms Need for Cyber Resilience Framework for Insurers

    September 17, 2019

    EIOPA published a report focuses on the cyber risk profile of insurers from the perspective of operational risk and analyzes the challenges and opportunities in the cyber insurance market in Europe. The findings identified the key challenges faced by cyber underwriters and confirmed the need for a sound cyber resilience framework for insurers.

    The report finds that clear, comprehensive, and common requirements on the governance of cyber-security as part of operational resilience would help ensure the safe provision of insurance services. This would include a consistent set of definitions and terminology on cyber risks to enable a more structured and focused dialog between the industry, supervisors, and policymakers, which could further enhance the cyber resilience of the insurance sector. Furthermore, the report finds that enhanced data collection on cyber incidents and losses should allow insurers to manage and price their affirmative cyber risk exposures more effectively. Having common and harmonized standards for cyber-risk measurement and cyber-incident reporting could greatly facilitate the understanding of cyber risk underwriting. To this end, creating a European-wide cyber incident-reporting database, based on a common taxonomy, could be considered as well.

    The report highlights that the cyber insurance market in Europe is still small in size but growing rapidly. In 2018, the data show an increase of 72% in terms of gross written premiums for the surveyed insurers and this increase amounts to EUR 295 million in 2018 compared to EUR 172 million in 2017. However, non-affirmative cyber exposures (where cyber risk is neither explicitly included nor excluded in an insurance policy) remain a source of concern. While common efforts to assess and address non-affirmative cyber risks are under way, some insurers have adopted a "wait-and-see" approach to address non-affirmative cyber risk, where the implementation of action plans to address non-affirmative exposure depends on the materialization of future events. Therefore, further effort is needed to properly tackle non-affirmative cyber exposures to address the issue of potential accumulation risk and to provide clarity to policyholders.

    This report is based on the responses of 41 large (re)insurance groups across 12 European countries—Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and United Kingdom. The sample under consideration is similar to the one for the 2018 Insurance Stress Test by EIOPA, representing a market coverage of nearly 75% of total consolidated assets. 

     

    Related Links

    Keywords: Europe, Insurance, Cyber Risk, Operational Risk, Cyber Resilience Framework, Governance, Underwriting Risk, EIOPA

    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8201