Cyber risk: The emerging cyber threat to industrial control systems

Cyber risk is continually evolving, meaning insurers should understand emerging risks in order to keep pace with their clients' exposures.

The potential for physical perils represents a major turning point for the broader cyber (re)insurance ecosystem. This risk has previously been considered unlikely to materially impact the market, with cyber perils traditionally emerging in the form of non-physical losses.

However, crossing the divide between information technology (IT) and operational technology (OT), along with increases in automation and the sophistication of threat actors, means it is paramount that (re)insurers carefully consider how major losses may occur and the potential impacts.