Evolving cyber operations threats: Four considerations for insurers>
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CyberCube has released a Global Threat Outlook for the fourth quarter of 2023, highlighting key threats and analyzing global cyber ‘hot zones’.
The report focuses on four core considerations for insurers based on recent activity:
1) Intelligence gathering and malware attacks: The report discusses Russian activities in its war with Ukraine, emphasizing the need for insurers to model their policies around potential impacts.
Targeted malware attacks against major cloud service providers and global servers can lead to widespread outages and disruption.
2) Internet and telecommunications assets: China is actively engaging in cyber activities, targeting various industry sectors and Taiwanese technology firms.
Potential disruptions to critical infrastructure and telecommunications pose risks, and insurers should evaluate their coverage to handle infrastructure failures.
3) Operational technology: Iranian groups have targeted government and private sector organizations globally, aiming to attack manufacturing and heavy industry operational technology.
Insurers need to review their policies and underwriting processes to account for these risks.
4) Cryptocurrency: North Korea’s illicit financial activities have impacted many countries, with the surge in cryptocurrency adoption leading to more aggressive cyber-attacks.
Attacks on cryptocurrency assets and exchange systems target financial transaction providers and large banks.
Insurers should monitor upcoming regulations in the crypto space.
The report concludes that upcoming threats may challenge existing war and cyber war exclusion language.
Insurers should establish a consistent approach that considers the interests of stakeholders.
Despite uncertainties in attributing cyber incidents, underwriters should strive for consistency and clarity to protect themselves and policyholders from outlier events.
Link: https://www.brownejacobson.com/insights/the-word-september-2023/us-court-declares-a-constitutional-duty-to-protect-against-climate-change