Cybersecurity exposures are at the top of the list of new risks for insurers, who have to deal with both risk and operational issues related to risks, said a panel of risk managers.
"Cyber, in the short term, is clearly at the top of everyone's minds," said Robert Paiano, vice president and chief risk officer of The Hartford Financial Services Group Inc. in Hartford, Connecticut.
Mr. Paiano said insurers need to consider growing cyber exposures from their own cybersecurity perspective in their own operations as well as on the insured's coverage side.
He commented during a session of S&P Global Ratings Inc's 37th Annual Insurance Conference, held online.
Dan Hogan, Boston's risk manager for the Liberty Mutual Insurance Group, said the insurer sees cyber as multidimensional. "Is it an emerging risk or has it emerged?" he asked. “From our point of view, it's both. It is here, but it is also evolving at an astronomical pace, which requires us to continue to treat it as an emerging risk. "
Primary insurance companies are trying to reduce their exposures as cyber losses increase," says Turab Hussain, managerial risk and actuarial. head of PartnerRe Ltd.
"Generally speaking, there is a perception that insurers are considering how to share more of the losses with insured persons," says Hussain. The retention of the dollar is increasing and the hourly retention of business interruptions "is being pushed up by the primary," he said.
Mr. Paiano said there is also renewed interest in event stoppages and business interruption coverage, which Hartford continues to sign while "clarifying the policy language, so policyholders understand exactly what the coverage includes."
The parties focus on "clarity in coverage and understanding and communication of what is covered and what is not covered," Hussain said.
The government may need to play a role in transmitting the risk associated with the pandemic, panelists said.
"The federal government is the only entity with a sufficient balance sheet to meet this systemic risk," Hogan said. Mr. Hussain said there may be opportunities in "public / private partnerships."