Findings underscore importance of conducting a cyber risk assessment, Aon outlines three-step approach for assessing cyber risk
CHICAGO (April 11, 2016) – Aon Global Risk Consulting, the risk consulting business of Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, today released its 2016 Captive Cyber Survey report, which found that the costs of business interruption due to a breach is the top cyber risk concern for businesses across all industries.
As Aon’s first cyber captive survey, the findings offer a better understanding of organizations’ current attitude towards cyber threats, risk assessment, insurance purchasing trends, loss adjustment concerns and provides insight into current retail market trends, including captives and other risk financing solutions.
“Our findings also indicate that there is a disparity between companies recognizing that cyber is one of the fastest growing and permeating risks, and actually understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report. “Captives are a great alternative risk transfer solution for bridging this gap while the industry’s approach to cyber risk management catches up to the evolving pace of technology.”
The survey findings indicated that 94 percent of companies would share risk with others in their industry as part of a captive facility writing cyber. What’s more, Aon experts anticipate alternative risk transfer options to become increasingly sought after as these solutions give companies some control over underwriting, coverage scope and claims adjustment, while providing an opportunity to share best practices, experience and data in a private setting.
Additional highlights include:
“Given the evolving nature and complexity of cyber exposures, we found that the use of cyber risk assessments is surprisingly low,” said Kevin Kalinich, global practice leader for cyber/network risk at Aon Risk Solutions. “Conducting such an assessment is a useful tool for improving risk understanding and maturity as well as helping organizations better prepare for potential business interruption during or after a breach. Aon is at the forefront of assisting clients develop and implement a risk assessment approach that is cross departmental and can translate cyber exposures into financial impact.”
Aon recommends the following three steps to begin a cyber risk assessment:
About the 2016 Aon Captive Cyber Survey
Aon’s 2016 Captive Cyber Survey is designed to offer analysis on top cyber risk concerns, risk assessment approaches, attitudes toward cyber insurance and policy cover and structure. The survey, conducted for the first time in fall 2015, gathered input from risk managers and directors of more than 125 captive insurance companies. The 2016 findings will allow organizations to gain insight into the mounting threat of cyber risk, benchmark their risk management practices and identify approaches that may increase their preparedness.
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide,
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