Cyber Risks

Abstract

The insured some difficulties in finding what they specifically intend or need and the insurers are still facing major problems in fulfilling or predicting those specific risks that may occur. There is no historic based on years of experience concerning cyber risks that allows the insurers to antecipate the risks at stake and the claims that may arise, in order to create and present balanced solutions that meets the clients’ needs. It is important to have standard solutions, but in some cases the insurance market should be able to offer tailored solutions that meet the clients’ real needs, through pre-contractual diligences including a thorough analysis of the risks involved. We are clearly facing a special situation that might turn in a most frequent with high severity scenario, which forces insurance companies to rethink their strategies in order to prevent or decrease potential and substantial losses.  Both insured and insurers fight against an invisible enemy that can’t be held accountable for the damages caused, so the possibility to exercise a reimbursement right against the responsible is almost non-existent. Cyber insurances shall include coverage for own damages - that can be basic or include additional coverage for third party liability, once the compensation amount can be substantially high. The non-affirmative exposure (silent risks) are a real concern for the insurers within the accumulation of risks, when it comes to insurance policies that do not explicitly include nor exclude cyber risks from its scope of coverage.  The solution to this problem might be to review/update the clauses from the insurance policies in order to expressly include cyber risks. Alternatively, cyber risks should be clearly included with the insured agreement and consequently increasing the insurance premium.  The alternative is to settle potential disputes in court, in order to understand if a certain claim is covered by the scope of an insurance policy.