Minority plan for cyber terrorism - Marsh - FREE

Minority plan for cyber terrorism - Marsh - FREE

Brussels bombingA minority of insureds and insurers plan for cyber terrorism in their risk management strategies, according to a recent study from Marsh USA.

Some 58% did not use risk models to manage exposure to terrorism risk, the survey said.

The report comes at a time when terrorist attacks are on the rise and also changing in nature.

Cyber terror attacks are not yet widespread, but the risk increases every day as more and more devices connect to the internet.

Matthew McCabe, an errors and omissions specialist in Marsh's cyber division, said: “Cyber as a pervasive risk will likely not be solved in our lifetime.”

Workers' compensation risk has been drastically changed by new terrorist tactics, Marsh noted, which have switched to softer targets, putting employees in the path of danger, something which companies and insurers must take into account.

Risk modeller AIR Worldwide is updating its terrorism risk models to find the concentration of employees and assets within an area, and their proximity to landmarks likely to be terrorist targets, as well as the type of weapons terrorists could use, from small arms to biological weapons.

Workers compensation as well property exposures are affected.

High profile attacks, such as bombings, have gone down since 2004, but the frequency of lone wolf attacks has risen.

Bombings in Brussels (pictured) and Boston show terrorists' use of explosives persists, and that companies should stay prepared.

Raising awareness of terrorism risk models and their use can be used to benefit premium pricing, Marsh added.

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