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July, 29 2021

Cyber Coverage

The looming threat of “disinformation attacks”

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What: Ransomware is dominating the headlines, but it’s not the only type of cyberattack companies need to be concerned about. The threat of disinformation has grown significantly recently as technology has unlocked new capabilities and trust in traditional information sources has eroded. 

Why it matters: “Disinformation attacks” continue to show how specialization and unbundling is key to accurate rating and effective selling of cyber coverages. A bundled cyber policy will have a hard time efficiently addressing all potential threats. Disinformation is just one example of an emerging threat that will leave some open to risk. The real question is: Which party is actually exposed to the risk — the policy holder or the insurer? 

Read: Disinformation is coming for your business

Cultural Trend

The accelerating decline in cash and what it means for insurance

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What: Cash usage took a big hit because of the pandemic. The percentage of consumers who use cash at least monthly dropped from 82.4% in 2019 to 74.7% in 2020. 

Why it matters: With the transition to digital currency, there is an increased need for cyber security insurance coverage for digital payments. For some historically cash-based businesses, this is going to be a challenge.

Read: 2020 SCPC Tables

Industry Challenge

The number of working age people is shrinking

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Quote: “Estimates from the Census Bureau showed that the U.S. population ages 16 through 64 fell 0.1% in 2020 — a scant drop but the first decline of any kind after decades of steady increases. It reflected a sharp fall in immigration, the retirements of the vast baby boom generation and a slowing birth rate.”

Why it matters: For industries like insurance and trucking that are already having challenges with recruiting, this is going to make the problem worse. This may force some companies to hire under-qualified individuals, exposing such companies to new risks. 

The need for intelligent automation is going to continue to grow as this trend continues. 

Read: Employers Must Contend with Shrinking Population of Working-Age People

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