The digitalisation of economic and financial activities, as well
as the COVID-19 pandemic have increased companies' reliance
on digital infrastructures which consequently increases
companies' and consumers' exposure to cyber-related
incidents. Cyber-related incidents can lead to potentially
significant and unexpected losses both for insurers as well as for
policyholders, especially where insurance policies do not
explicitly take cyber risks into account (i.e. non-affirmative
cyber exposure, also referred to as ‘silent cyber').
Therefore, it is vital for (re)insurance undertakings
(“undertakings”) to be aware of these risks and take
them into account in risk management and calculation. The European
Insurance and Occupational Pensions Authority (“EIOPA”)
has published a supervisory statement (the “Supervisory
Statement”) addressing its concerns regarding these
non-affirmative cyber risks.
