In a recent report, French reinsurance firm SCOR has addressed the potential challenges for the market amidst the growing concern of cyber-attacks on digital supply chains.
SCOR states that cyber-attacks have been a growing anxiety over the last 18 months as traditional and IT supply chains are becoming increasingly entangled to satisfy business efficiency and optimization.
The related cyber exposure is increasing at both the individual company level and at the global level, suggests the report, adding that cross-dependencies and single points of failure should be analysed to monitor potential large-scale accumulation risks and cascading effects of supply chain attacks.
The report notes that while IT supply chain cyber-attacks have increased in recent years, the impacts remain limited, as performing the attacks requires a very high level of preparation time, alongside expertise and funding.
“As of now, most of the recent high-profile supply chain attacks have probably been performed for cyber espionage purposes and therefore have had limited economic impacts on victims.”
“However, it is probable that criminal hackers may eventually reuse cyber spy’s techniques to launch financially-motivated attacks that would have a much larger impact on companies and, in turn, on the re/insurance market.”
Building a sustainable and profitable cyber re/insurance market is a collective journey where all stakeholders have a role to play, affirms SCOR.
It adds, ‘As a leading global reinsurer, SCOR is committed to supporting its clients as they navigate through the complex, fast-evolving cyber risk landscape.”