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

    US Agencies Requests Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3997