Cyber protection gap widening

Guy Carpenter examined the changing nature of risk and phenomenal increase in intangible asset values in a virtual press briefing.

Erica Davis, the reinsurance broker’s managing director and North America Cyber Center of Excellence leader, said the heightened market complexity created by COVID-19 meant, “the new risk landscape reinforces the importance of reassessing the value of this changing asset base”.

Focusing on the largest intangible risk, cyber, she said: “Despite historical profitability and forecasts of hypersonic product growth, the industry’s cyber growth trajectory has tapered off over the last two years and is evidencing some growing pains.”

“This flattening market trend is directly at odds with a heightened threat environment and the increased valuation of intangible assets. And it is creating a widening protection gap for businesses that will only expand.”