General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
February 26, 2019

While speaking at the Third Annual Fintech and Regulation Conference in Brussels, the EIOPA Chair Gabriel Bernardino discussed what EIOPA is doing and what should be done to cope with the challenges posed by cyber risk at a global level. He opines that these risks affect the insurance sector on two levels: the first involves the security of the insurance business and the second relates to the role of insurance in covering and managing cyber risk.

Mr. Bernardino believes that a well-developed cyber insurance market can help to raise awareness of businesses to the risks and losses that can result from cyber-attacks; to share knowledge of good cyber risk management practices; to encourage risk reduction investment by establishing risk-based premiums; and to facilitate responses to, and recovery from, cyber-attacks. The future demand for coverage of this kind will depend, to a large extent, on both the frequency of high-profile cyber incidents and legislative developments in relation to personal data protection. In this context, the implementation of the data protection regulation in EU may lead to a significant growth in cyber risk insurance, with estimates suggesting that there may be parity between the EU and U.S. markets in coming years. Although coverage of cyber risk by insurers is still in its infancy, most of the market is concentrated in the United States. Growth in this market, however, has been significant, with the current forecasts suggesting that premiums may reach USD 20 billion in 2025.

He added that EIOPA has been monitoring developments in the cyber insurance market for some time. Last year, EIOPA published a report titled "Understanding cyber insurance" based on a structured dialog with insurance companies across Europe. Through this dialog, EIOPA identified a number of issues relevant to the cyber insurance market in Europe. It was found that the cyber insurance industry expects a gradual increase in demand for insurance, mainly driven by new regulation, the increase in cyber risk related incidents, increased awareness of risks, and the increased frequency and severity of cyber attacks. Regulation may be welcomed by the industry in a moderate fashion, as it could help to address some of the identified challenges.

He also added that EIOPA took into account its work and these findings in the development of our supervisory convergence plan for 2018–2019. In this plan, cyber risk is identified as a priority under the supervision of emerging risks. As part of the activities in this field, EIOPA will develop guidelines regarding Information & Communication Technologies (ICT), security and governance, including cyber resilience, and will further develop supervisory practices that seek to assess information system resilience, cyber risk vulnerability, and the insurance industry’s use of big data. EIOPA will also look into an efficient way of carrying out stress tests on the resilience of the insurance sector to cyber-attacks. It is clear that cyber insurance affects countries worldwide, not just in Europe. Issues related to cyber security and cyber risk are, therefore, one of the three priorities of the EU-U.S. Insurance Project, in which EIOPA plays a leading role. He concluded that "This is a universal challenge! Everyone has to contribute to meet this challenge!"


Related Link: Speech (PDF)

Keywords: Europe, EU, Insurance, Cyber Risk, Regtech, Stress Testing, Guidelines, EIOPA

Related Articles

ECB Updates Validation Checks and List of Identifiers Under AnaCredit

ECB updated the AnaCredit validation checks (Version 1.4) and the list of national identifiers (version 2.4) for AnaCredit reporting.

March 21, 2019 WebPage Regulatory News

BCBS Publishes Results of the Basel III Monitoring Exercise

BCBS published results of the Basel III monitoring exercise based on data as of June 30, 2018.

March 20, 2019 WebPage Regulatory News

EBA, FCA, and PRA Agree on MoU Template for Supervisory Cooperation

EBA, FCA, and PRA announced that they have agreed on a template for the Memorandum of Understanding (MoU) that sets out the expectations for supervisory cooperation and information-sharing arrangements between UK and EU/European Economic Area national authorities.

March 20, 2019 WebPage Regulatory News

HKMA Publishes CoP on Loss-Absorbing Capacity Requirements of Banks

HKMA issued, in relation to the Financial Institutions Resolution (Loss-Absorbing Capacity Requirements—Banking Sector) Rules (LAC Rules) a chapter of a code of practice (LAC CoP) under section 196 of the Financial Institutions Resolution Ordinance (FIRO).

March 20, 2019 WebPage Regulatory News

EBA Publishes Reports Monitoring the Implementation of Basel III in EU

EBA published two reports measuring the impact of implementing the final Basel III reforms and monitoring the implementation of liquidity measures in EU.

March 20, 2019 WebPage Regulatory News

BCBS Publishes Results of Survey on Proportionality in Bank Regulation

BCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.

March 19, 2019 WebPage Regulatory News

US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy Swaps

US Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.

March 19, 2019 WebPage Regulatory News

HKMA Expects Banks to Manage Risks Related to Crypto-Asset Exposures

HKMA issued a statement announcing that it expects authorized institutions to take note of the BCBS statement on crypto-assets and its prudential expectations.

March 18, 2019 WebPage Regulatory News

SNB Issues Form on Solvency Risk of Counterparties in Interbank Sector

SNB released form (Version 5.00) and related documentation for reporting solvency risk of counterparties in the interbank sector.

March 18, 2019 WebPage Regulatory News

EIOPA Requests Data on LTG Measures from Insurers Under Solvency II

EIOPA has requested the European Economic Area insurance undertakings, which are subject to Solvency II, to provide information on the long-term guarantee (LTG) measures.

March 18, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2769