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Lloyd’s Report On Risk Of Cyber-Attack To The Industrial Sector
NEW LLOYD’S REPORT HIGHLIGHTS THE INCREASING RISK OF CYBER-ATTACK TO THE INDUSTRIAL SECTOR
As cyber threats continue to evolve and become more sophisticated, it is crucial for insurers to understand these emerging risks in order to keep pace with their clients’ exposures.
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The new report: The Emerging Cyber Threat to Industrial Control Systems, considers potential realworld scenarios which visualise a range of cyber-attacks causing physical damage to major industrial and manufacturing organisations.
Cyber-attack risks have previously been considered unlikely to materially impact the physical market, with cyber perils traditionally emerging in the form of non-physical losses. However, the report looks at how physical risks have become a rapidly growing concern for industrial businesses as shown by recent high-profile breaches. As bridges are increasingly being built between information technology (IT) and operational technology (OT), along with increases in automation and sophistication of threat actors, it is paramount that (re)insurers carefully consider where major losses may occur.
Lloyd’s, CyberCube and Guy Carpenter have conducted an analysis detailing three scenarios which represent the most plausible routes by which a cyber-attack against industrial control systems (ICS) could generate major insured losses. The report considers four key industries dependent upon ICS (Manufacturing, Shipping, Energy, and Transportation) and assesses precedent and potential impact on each.
Designed to aid individual syndicates’ understanding of the impact of emerging cyber risks on their portfolios of business, the report focuses on three potential routes of attack by organised hackers:
• A targeted supply-chain malware attack, in which malicious actors breach a device manufacturer and compromise that manufacturer’s products before distribution
Lloyd’s, in partnership with cyber analytics specialist CyberCube and reinsurance broker Guy Carpenter, has today launched a new report which examines how ‘Internet of Things’ devices are posing an increasingly high risk of cyberattack to industrial and manufacturing businesses.”
