Supply chain biggest challenge for cyber security
Source: Asia Insurance Review | Feb 2024
Supply chain security is the biggest challenge for cyber insurance buyers according to Marsh. Addressing a recent media briefing, the broker also predicted that cyber insurance rates will continue to fall during 2024.
Marsh UK cyber leader Kelly Butler said supply chain vulnerability to cyber attack is ‘without doubt’ the biggest challenge facing clients today. Marsh cyber growth leader for the UK Gareth Bateman said supply chain risk needs careful attention through due diligence applied to all parties companies work with.
She said, “At a big complex organisation with thousands of suppliers, you have to be very good at organising and understanding how you manage those third parties that service your business. You have to target your limited resources to protect the ones that mean the most to your organisation.”
Ms Butler stressed the importance of strong vendor management, urging companies to carry out due diligence about who their suppliers are and what they do.
Cyber is a growth area for insurers, which bodes well for rates. Marsh expects rates to continue to decrease into at least halfway through this year.
Catastrophic risk also continues to loom large over the cyber insurance market, with exclusions, particularly around war, coming into play. A