Cyber risk carries over into other liability lines: Allianz report

By Erin Ayers on April 10, 2017

Within the broader insurance world of liability losses, cyber risk stands to become a significant worry in other lines of business including product liability and recall risk, according to a new global claims review from Allianz Global & Corporate Specialty (AGCS).

“Cyber claims are becoming more relevant. This is a huge area of growth for insurers,” said Peter Oenning, global head of claims liability for AGCS.

Allianz’s 2017 Risk Barometer showed that corporations now consider cyber risk to be one of their top three exposures. While organizations worry about sophisticated cyberattacks from outside, they still underestimate the costly damage that can result from technical failures, human error, insider threats, and failing to meet regulatory standards.

Cyber liability is unlikely to become less unwieldy in the future, with digitalization and new technologies having a wide impact on how business is conducted. For example, while autonomous vehicles are expected to reduce the frequency of claims, they are also expected to have a claims impact on other liability lines. An accident involving an autonomous vehicle could impact the manufacturer, the software provider, the fleet owner, as well as any affected third parties.

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Erin is an editor at Advisen. She has 15 years of journalism experience. Prior to Advisen, Erin covered property-casualty insurance for 13 years as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at eayers@advisen.com.