Risk associations set to sway cyber debate

Speaking to Commercial Risk Europe at the AMRAE Rencontres in Lille, Ferma’s president Jo Willaert and new chief executive officer (CEO) Typhaine Beaupérin said the risk management community’s voice needs to be heard in the corridors of European power. They also said risk managers need to work with insurers because cyber insurance solutions do not yet meet all the needs of buyers. Also in Lille, AMRAE president Brigitte Bouquot told CRE that Ferma can play a big role in lobbying on cyber risk issues in the European Union. She said insurers have done a good job in developing cyber covers, but more comprehensive solutions will only appear once risk managers get a better understanding of their organisations’ cyber risk exposure, and any related liabilities are clarified. Ms Bouquot praised the efforts of insurers in designing cover for this difficult risk. But she said there are still a lot scenarios and cases “where we don’t know what the risks are and therefore the insurance proposal is not yet finalised”. There is also ongoing discussion to clarify who is liable for certain cyber risks: producers, manufacturers or those in the supply chain, she added.hide“I believe that when the risk scenario and liability becomes more clear, thereafter you can deliver a very good insurance solution. There is plenty of capacity and insurers have an appetite for the business. But the first clarification is to understand the scenario, then who is liable for what and then insurance,” said AMRAE’s president. She also explained that AMRAE wants to do its own homework and clarify its thoughts on cyber insurance. It will then start more detailed discussions with Ferma on the topic. She believes Ferma’s real power on this issue lies in its lobbying ability. There are two roles Ferma intends to play to help its members manage cyber risk: lobbying and insurance, according to Mr Willaert. “The first is to be sure that whatever decisions will be made in Europe [on cyber security], Ferma is part of the decision-making process. We need to influence decisions and use the skills of our new CEO in order to bring the message our associations want to the European Union. This is probably the most crucial role we can play,” he said. Ms Beaupérin, who joined Ferma as CEO in December, said cyber is a key regulatory area of focus for the federation. She explained that in December the European Commission (EC) launched a public consultation on public-private partnerships within cyber security, as well as potential policy measures that could stimulate the European cyber security industry. The consultation ends in March and Ferma is preparing its response. “This consultation will definitely be on our agenda. This is something we will look to respond to,” said Ms Beaupérin. “We can use this consultation as an opportunity to have a more targeted position on these issues. It is an opportunity to have all the members at the table and say: ‘this is the position of risk managers on certain issues’,” she said. Ms Beaupérin said insurance is notably absent from the consultation and is something Ferma wants to raise with the EC. “We will point out that insurance is very important. Even the Commission, whether on purpose or not, is avoiding speaking about this very important element in the whole cyber discussion. So we see this as a starting point for us to be present on this issue, know exactly what our key messages are and where we can add value to the discussion and debate,” she said. According to Mr Willaert, Ferma also needs to work with insurers to develop cyber solutions that meet the needs of its members. “We hear from our associations that the insurance market is not responding properly to their needs. They do not say the insurance market is not doing a proper job—I think the insurance market is active and listening—but until now all we can say is there is no product at this stage that our members need. Solutions are just in bits and pieces,” said Mr Willaert. In the run-up to the AMRAE conference, a number of insurers launched cyber insurance solutions, some targeting French and European companies. Although progress has been slow, Mr Willaert believes insurers and their clients have made progress researching cyber risk and working towards solutions. Progress has really accelerated during the past few months, he said. “We needed the past two or three years for all of us to make the cyber offering much more mature. What are the risks, what is covered, what is not covered, what is already in existing policies? I think we were in a bit of an R&D phase,” said Mr Willaert. To help speed further progress, Ferma is in discussion with pan-European insurance body Insurance Europe and insurers on an individual basis. Ferma is also considering a survey of members on this important issue in order to gather evidence for lobbying, explained Ms Beaupérin.

Risk associations set to sway cyber debate

Want to read this article?

Read Next

AstraZeneca places innovative outcomes based policy that covers interconnected risks

40% of ESG investment funds in Europe accused of greenwashing

Talanx brings forward targets in new sustainability strategy

German insurers brace for rising fraud cases

FM Global reveals record $1.4bn renewal credits

AstraZeneca places innovative outcomes based policy that covers interconnected risks

40% of ESG investment funds in Europe accused of greenwashing

Talanx brings forward targets in new sustainability strategy

German insurers brace for rising fraud cases

FM Global reveals record $1.4bn renewal credits

Want to read this article?

Read Next

AstraZeneca places innovative outcomes based policy that covers interconnected risks

40% of ESG investment funds in Europe accused of greenwashing

Talanx brings forward targets in new sustainability strategy

German insurers brace for rising fraud cases

FM Global reveals record $1.4bn renewal credits

Related Articles