Public-Private Initiatives Can Help Ameliorate Cyber Risks

Businesses continue to embrace technological innovation despite the fact that doing so may lead to the emergence of new and unforeseen risks. As cyber risk is one of the most swiftly evolving perils in the reinsurance industry, carriers should carefully manage the exposures–and not only for competitive advantage.

Ransomware has become a persistent and growing problem. Private operators of critical national infrastructure (CNI) are especially appealing targets. These occurrences can have terribly destabilizing effects on these businesses and on society as a whole. 

This challenge makes public-private partnerships especially important. Government can play a role by compelling owners of CNI to undertake specific cybersecurity directives; intervene and assist directly during or after a significant cyber-attack; and could require due diligence on the cyber resilience of their supply chains.

Marsh McLennan’s report, Partnering with Purpose, prepared for the National Preparedness Commission in the UK, examines the opportunities for stronger interactions between public and private sectors. Founded on extensive research and interviews with resilience experts in the UK and abroad, it offers ideas for further exploration.

The wide scope and significance of this challenge presents a clear opportunity for the (re)insurance market to bring forth innovative solutions that address understanding, affordability and appeal. Guy Carpenter and Marsh McLennan stand ready to join forces with governments, local authorities and community groups in understanding risks and exploring solutions.