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

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004