Digital networks have become critical infrastructure for countries all over the world, exacerbating the threats from a wide variety of potential perils. Despite high levels of private ownership in digital networks, governments should have a strong presence in mitigating national cyber risks.
According to the Marsh McLennan report, Building the Fourth Utility: Government Imperatives for Digital Infrastructure, achieving a high level of resilience requires comprehensive national strategies that encompass cybersecurity and physical integrity, as both face vulnerabilities inherent to digital technology and risks perpetuated by malicious agents.
In public-private undertakings, a key role for governments in ensuring cyber resilience comes in the form of conducting simulation and stress-testing activities. In 2018, the Bank of England, in partnership with the UK’s most systemically important financial firms and other financial authorities, required participants to respond to a cyberattack scenario in a joint exercise between public and private sectors.
Guy Carpenter is working closely with our clients to share updates on the threat landscape, deliver cyber industry insights, construct relevant modeling scenarios, and design reinsurance placements to protect these portfolios. The industry is also adopting new risk mitigation, pricing and underwriting tactics in order to course-correct from the impact of this expanding cyber risk.
