#CyberFLASH: Insurance Institute of Canada report encourages p&c organizations to build cyber resiliency; cites business opportunity in expanding coverage

aCanadian property and casualty insurance organizations should bolster the defences of their organizations and those of their clients against cyber threats by developing a culture of cyber security, recommends a new research report issued Tuesday by the Insurance Institute of Canada (IIC).

“Insurance organizations are encouraged to build a corporate culture of cyber security that includes actions to address technological threats and security training for employees,” notes an IIC statement announcing the release of Cyber Risks: Implications for the Insurance Industry in Canada, which assesses cyber risk from the perspective of the Canadian p&c insurance industry.

The research report cites a study by Intel’s McAfee and the Center for Strategic and International Studies, Net Losses: Estimating the Global Cost of Cybercrime, which estimates the global cost of cyber crime in 2013 at US$375 billion to US$575 billion. “The global impact of cyber crime is similar to estimates by the United Nations of the international production, trafficking and sales of illicit drugs (US$400 billion) and the worldwide damage resulting from vehicle collisions (US$518 billion),” states the report.

According to the report, the most common forms of cyber attacks were theft and other data attacks, malware (phishing and pharming) and mechanisms to infect computers (viruses, worms, Trojan horses). The report notes that in 2013, the 3,700 clients of IBM’s Managed Security Services experienced seven or eight cyber incidents each month, on average. About half of those attacks – including scams to steal credit card information, website vandalism, corporate espionage and denial-of-service attacks – were directed at the manufacturing (27%) and financial services (21%) industries.

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