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Managing the impact of increased connectivity
In this A Guide to Cyber Risk: Managing the impact of increasing interconnectivity – specialist insurer Allianz Global Corporate & Specialty (AGCS) examines the latest trends in cyber risk and emerging perils around the globe. Cyber risk is a major and fast-increasing threat to businesses with cyber crime alone costing the global economy approximately $445bn a year, with the world’s largest 10 economies accounting for half this total. In the UK, the cost of cyber-crime as a percentage of GDP is .16%, with an estimated cost of $4.3bn (£2.8bn).
Key findings:
- Cyber insurance premiums will grow globally from $2bn per annum today to more than $20 billion over the next decade, a compound annual growth rate of more than 20%.
- Future threats will come from intellectual property theft, cyber extortion and the impact of business interruption (BI) following a cyber-attack or from operational or technical failure; a risk which is often underestimated. Connectivity creates risk.
- Increasing interconnectivity of everyday devices and growing reliance on technology and real-time data at personal and corporate levels, known as the ‘internet of things’, creates further vulnerabilities. Catastrophic event.
- While there have been some very large data breaches, the prospect of a catastrophic loss is becoming more likely.