Almost eight in ten (79%) insurance CEOs see cyber threats as a barrier to growth, according to a new report by PwC.
PwC’s Annual Global Survey, which included 101 participants from the insurance sector, revealed that there are a growing number of complex threats that businesses are facing, including regulation and cyber security.
The report highlighted how the risk of cyber-attack can expose the insurance industry to significant loses, through their technology, errors and omissions and other existing business lines. The UK Government recently estimated that the insurance industry’s global cyber-risk exposure is in the area of £100 billion ($140 billion).
The consultancy claimed, however, that there were potential opportunities for insurers who stay ahead of the curve and help other businesses to protect themselves against cyber threats. It estimated that annual premiums may reach $7.5 billion by 2020.
Stephen O’Hearn, global insurance leader at PwC, said: “Findings from our survey underline the fact that those insurers out in front are embracing technological disruption as a growth opportunity rather than a threat. They are harnessing the creativity of their people to tap into new value chains and transform operational speed and cost.
“They are also seeking out new sources of data and making the most of client touch points to enhance customer experience, outcomes and whole new possibilities in what the business can deliver.”