Insurers and asset managers supporting cyber defense

Insurers and asset managers around the world continue to focus on cyber security amid rising risks, according to the findings of a Moody’s Ratings survey of 110 companies operating in both sectors.

Respondents’ total investment in cybersecurity increased by 53% between 2019 and 2023, and the share of total IT budgets dedicated to cyber risk increased to 8% in 2023 from 5% in 2019. Meanwhile, the number of employees in the field of cybersecurity increased by approximately 23%, according to the survey results.

“Most insurers and asset managers are engaged in long-term cyber security planning and have implemented advanced cyber security protection,” it said in a press release. “Third party risk management is also a key point for both industries. These efforts reflect the increasing frequency and sophistication of cyber attacks, as well as heightened regulatory expectations for cyber resilience.”

Moody’s found that companies in America – which account for the vast majority of cyber attacks – reported a 65% increase in cyber security spending. In its latest Global Financial Stability Report, the International Monetary Fund reported that nearly one in five of all cyber incidents affect financial institutions.

A total of 96% of insurer and asset manager respondents reported having dedicated cybersecurity staff, and respondents saw an average increase of 23% in the number of full-time cybersecurity employees between 2019 and 2022, compared to 13 % in 2017-2019.

When it comes to long-term planning, about 98 percent of respondents said they have a multi-year strategy for managing cyber risk, such as comprehensive risk assessments, investments in advanced technology and skilled personnel, or proactive incident response procedures. All respondents also reported providing cyber risk management training to employees at least once a year. About half reported doing so monthly.

“Cyber ​​insurance premiums increased substantially between 2020 and 2022, with insurers, brokers and asset manager respondents reporting double-digit increases or higher, particularly for loss-reporting accounts,” the report said. “Despite higher premiums, nearly 85% of organizations said they plan to keep their insurance coverage unchanged over the next twelve months, while 13% said they plan to increase it.”

TOPICS
Cyber ​​carriers