Zurich Insurance Issues New Report on Cyber Security Risk and Liability

There is an urgent need to act to stem cyber risks, including threats that originate across borders. Better global governance would be a significant step toward efforts to mitigate risks. A report by the ESADEgeo-Center for Global Economy and Geopolitics and Zurich reviews the challenges to this approach and offers innovative solutions. 

In 2011, cyber insurance was still a novelty to many risk managers, and relatively few companies bought the cover. In 2015, more than 60 percent of companies participating in the fifth annual survey are insured. Five consecutive years of data demonstrate how attitudes have changed and how the marketplace reacts to emerging issues. The vast majority of respondents continue to perceive cyber risks as at least a moderate threat, and more organizations are viewing it as an extremely serious threat. Large organizations on average perceive the threat as greater than smaller organizations. That may be a reason why smaller companies are less likely to allocate resources to cybersecurity. The Internet and related information and communications tools have delivered enormous benefits to the global economy. These gains, however, are expected to tail off as the technologies become more ubiquitous, while the costs and associated risks may rise. The million dollar question, then, is whether the costs outweigh the benefits and what we can do to provide the best possible outcome. Just how great are the cyber risks to large corporations in 2015 and beyond? Share your assessment with the Cloud and Cyber Security Center.