Marsh McLennan and Zurich Urge Public-Private Action to Bridge Cyber Protection Gap and Boost Resilience
Marsh McLennan (NYSE: MMC) and Zurich Insurance Group (SWX: ZURN) have released a whitepaper highlighting the urgent need for public-private collaboration to address the growing cyber protection gap. The report, titled 'Closing the cyber risk protection gap', emphasizes the importance of innovative solutions to mitigate rapidly-evolving cyber threats, particularly for small and medium-sized businesses that are often underinsured.
The whitepaper identifies mass malware and mass cloud outage as insurable up to certain financial limits, while events like critical infrastructure failure are generally considered uninsurable. To bridge this gap, the report calls for establishing a common framework for data sharing, enhanced collaboration between the insurance industry and public sector, and the development of strategies to manage unquantifiable cyber risks through public-private partnerships.
Marsh McLennan (NYSE: MMC) e Zurich Insurance Group (SWX: ZURN) hanno pubblicato un whitepaper che evidenzia l'urgenza della collaborazione pubblico-privato per affrontare il crescente divario nella protezione informatica. Il rapporto, intitolato 'Colmando il divario nella protezione dai rischi informatici', sottolinea l'importanza di soluzioni innovative per mitigare le minacce informatiche in rapida evoluzione, in particolare per le piccole e medie imprese che spesso sono sottoassicurate.
Il whitepaper identifica malware di massa e interruzione massiva del cloud come eventi assicurabili fino a determinati limiti finanziari, mentre eventi come il fallimento delle infrastrutture critiche sono generalmente considerati inassicurabili. Per colmare questo divario, il rapporto chiede di stabilire un quadro comune per la condivisione dei dati, una collaborazione rafforzata tra l'industria assicurativa e il settore pubblico, e lo sviluppo di strategie per gestire i rischi informatici non quantificabili attraverso partenariati pubblico-privati.
Marsh McLennan (NYSE: MMC) y Zurich Insurance Group (SWX: ZURN) han publicado un whitepaper que destaca la urgente necesidad de colaboración público-privada para abordar el creciente vacío en la protección cibernética. El informe, titulado 'Cerrando el vacío en la protección contra riesgos cibernéticos', enfatiza la importancia de soluciones innovadoras para mitigar las amenazas cibernéticas en rápida evolución, especialmente para las pequeñas y medianas empresas que a menudo están infraseguradas.
El whitepaper identifica malware masivo y apagón masivo en la nube como asegurables hasta ciertos límites financieros, mientras que eventos como la falla de infraestructura crítica se consideran generalmente inasegurables. Para cerrar este vacío, el informe llama a establecer un marco común para el intercambio de datos, una colaboración mejorada entre la industria de seguros y el sector público, y el desarrollo de estrategias para gestionar riesgos cibernéticos no cuantificables a través de asociaciones público-privadas.
Marsh McLennan (NYSE: MMC)과 Zurich Insurance Group (SWX: ZURN)은 백서를 발표하며 증가하는 사이버 보호 격차를 해소하기 위한 공공-민간 협력의 긴급한 필요성을 강조했습니다. '사이버 위험 보호 격차 해소'라는 제목의 보고서는 특히 중소기업에 대해 신속하게 발전하는 사이버 위협을 완화하기 위한 혁신적인 솔루션의 중요성을 강조합니다. 이들 기업은 종종 보험이 부족합니다.
백서는 대량 악성 코드와 대량 클라우드 중단이 특정 재정 한도까지 보험 가능한 것으로 식별하고 있으며, 핵심 인프라 실패와 같은 사건은 일반적으로 보험이 불가능한 것으로 간주됩니다. 이 격차를 좁히기 위해 보고서는 데이터 공유를 위한 공통 프레임워크 수립, 보험 산업과 공공 부문 간의 협력 강화, 그리고 공공-민간 파트너십을 통해 정량화할 수 없는 사이버 위험을 관리하기 위한 전략 개발을 촉구합니다.
Marsh McLennan (NYSE: MMC) et Zurich Insurance Group (SWX: ZURN) ont publié un livre blanc soulignant l'urgence de la collaboration public-privé pour remédier à l'écart croissant de protection contre les cybermenaces. Le rapport, intitulé 'Combler l'écart de protection contre les risques cyber', souligne l'importance de solutions innovantes pour atténuer les menaces cybernétiques en évolution rapide, en particulier pour les petites et moyennes entreprises qui sont souvent sous-assurées.
Le livre blanc identifie maliciel de masse et panne de cloud massive comme assurables jusqu'à certaines limites financières, tandis que des événements tels que défaillance d'infrastructure critique sont généralement considérés comme inassurables. Pour combler cet écart, le rapport appelle à établir un cadre commun pour le partage des données, à renforcer la collaboration entre l'industrie de l'assurance et le secteur public, et à développer des stratégies pour gérer les risques cybernétiques non quantifiables à travers des partenariats public-privé.
Marsh McLennan (NYSE: MMC) und die Zurich Insurance Group (SWX: ZURN) haben ein Whitepaper veröffentlicht, das die dringende Notwendigkeit der Öffentlich-Privaten Zusammenarbeit zur Bekämpfung der wachsenden Cyber-Schutzlücke hervorhebt. Der Bericht mit dem Titel 'Schließung der Cyber-Risiko-Schutzlücke' betont die Bedeutung innovativer Lösungen zur Minderung sich schnell entwickelnder Cyber-Bedrohungen, insbesondere für kleine und mittlere Unternehmen, die häufig unterversichert sind.
Das Whitepaper identifiziert Massen-Malware und Massen-Cloud-Ausfälle als bis zu bestimmten finanziellen Grenzen versicherbare Risiken, während Ereignisse wie Kritische Infrastrukturfehler in der Regel als unversicherbar gelten. Um diese Lücke zu schließen, fordert der Bericht die Schaffung eines gemeinsamen Rahmens für den Datenaustausch, eine verbesserte Zusammenarbeit zwischen der Versicherungsbranche und dem öffentlichen Sektor sowie die Entwicklung von Strategien zur Bewältigung nicht quantifizierbarer Cyber-Risiken durch Öffentlich-Private Partnerschaften.
- Marsh McLennan and Zurich Insurance Group are taking initiative to address the cyber protection gap
- The whitepaper provides insights into insurable and uninsurable cyber events
- Proposal for a common framework for data sharing and collaboration between insurance industry and public sector
- Rapidly-evolving cyber threats are outpacing traditional insurance and risk management solutions
- Small and medium-sized businesses are often uninsured or underinsured against cyber risks
- Large-scale, catastrophic cyber events present substantial accumulation risks that cannot be borne by the private sector alone
Insights
The whitepaper from Marsh McLennan and Zurich Insurance Group highlights a critical gap in cyber risk protection, particularly for SMEs. This underscores the urgent need for innovative solutions to address rapidly evolving cyber threats. The focus on mass malware and cloud outages as insurable events, while classifying critical infrastructure failure as uninsurable, reveals the complexity of the current cyber insurance landscape.
The proposed public-private partnership framework is a significant step towards enhancing cyber resilience. By emphasizing data sharing, collaboration and innovation, this approach could lead to more comprehensive risk assessment and mitigation strategies. However, the success of this initiative will largely depend on the willingness of both sectors to share sensitive information and the ability to quantify catastrophic cyber risks accurately.
This whitepaper signals a potential shift in the cyber insurance market. The acknowledgment that catastrophic cyber events present substantial accumulation risks beyond the private sector's capacity is significant. It suggests that insurers may be reaching their limits in covering large-scale cyber incidents, which could lead to higher premiums or reduced coverage for businesses.
The call for public sector involvement in bridging the protection gap is crucial. It may result in the development of government-backed cyber insurance schemes, similar to those for natural disasters. This could expand the market's capacity and make cyber insurance more accessible, especially for SMEs. However, it also raises questions about potential moral hazard and the balance between government support and market-driven solutions.
The whitepaper's emphasis on the economic implications of cyber threats is noteworthy. By framing cyber resilience as important for societal and economic stability, it elevates the issue to a matter of national security. This could lead to increased government investment in cybersecurity infrastructure and policies.
The proposed framework, including incentives as an alternative to regulation, is an interesting approach. It could foster innovation and collaboration without stifling market dynamics. However, the success of this model depends on creating the right balance of incentives and ensuring they effectively motivate both public and private sectors to act. The focus on quantifying catastrophic cyber risk is important for developing effective economic policies and insurance products, but it remains a significant challenge given the evolving nature of cyber threats.
The whitepaper, Closing the cyber risk protection gap, emphasises the urgent need for innovative solutions to close the gap between risk and insurance – particularly for small and medium-size businesses that are often uninsured or underinsured – as rapidly-evolving cyber threats are outpacing the capacity of traditional insurance and risk management solutions to fully mitigate them. It highlights mass malware and mass cloud outage as examples of cyber incidents that are currently considered insurable up to a certain level of financial loss, and events such as critical infrastructure failure, which are generally considered uninsurable.
John Doyle, President & Chief Executive Officer, Marsh McLennan, said: “The severe threat presented by cyber risks requires collective action to bridge the protection gap. The insurance industry and the public sector must fully understand the spectrum of insurable and currently non-insurable cyber events. Through greater collaboration, we can develop innovative solutions, inform insurance buyers, enhance the cyber insurance market, and establish robust public-private partnerships that safeguard our society and economy from potentially catastrophic cyber events.”
Mario Greco, Group Chief Executive Officer, Zurich Insurance Group, said: “The threat of cyberattacks poses a significant risk to both societal and economic stability. As insurers, we can offer some degree of protection, but we must acknowledge that large-scale, catastrophic cyber events present substantial accumulation risks that cannot be borne by the private sector alone. Therefore, enhancing cyber resilience is vital to addressing this protection gap. Achieving this requires strong public-private partnerships to develop comprehensive strategies that secure our digital future.”
According to the whitepaper, establishing a common framework for data sharing, greater and more meaningful collaboration, and innovation between the insurance industry and public sector is required to help tackle this protection gap, strengthen resilience, and safeguard societies and economies from the escalating cyber threat landscape. This not only includes ransomware attacks and threats from bad actors, but global IT outages and other increasingly interconnected incidents.
The framework would include robust incentives as an alternative to further regulation, methods to measure quantifiable catastrophic cyber risk, and strategies to manage unquantifiable cyber risk through public-private partnerships. The whitepaper asserts that these measures could help sustain the broader economy and create capacity for the insurance market to support society against the backdrop of severe financial accumulation risks.
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of
About Zurich Insurance Group
Zurich Insurance Group (
Reflecting its purpose to ‘create a brighter future together,’
The Group has about 60,000 employees and is headquartered in
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Marsh McLennan
Eileen Mercer
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Source: Marsh McLennan
FAQ
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What types of cyber incidents are considered insurable according to the Marsh McLennan (NYSE: MMC) whitepaper?
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How does the Marsh McLennan (NYSE: MMC) whitepaper suggest addressing cyber risks for small and medium-sized businesses?
