At the RIMS Conference in New Orleans, Zurich released its “Global Cyber Governance…” report. The report was developed in collaboration with the ESADE geo-Center for Global Economy and Geopolitics at Ramon Llull University in Barcelona. Here, Mike Kerner, CEO of General Insurance at Zurich Insurance Group discusses the key findings from the report, as well as recommendations for a cyber-governance framework and a look at technologies that will shape the future.
According to Mr. Kerner, the “Cyber Governance Report looked at technology changes that have taken place in recent years, building on the Atlantic Council Report that looked at “connectivity of cyber.” Among the key recommendations from the Cyber Governance Report is the formation of a “G20+20 (Cyber Stability Board).” Mr. Kerner says the G20+20 would supplement the G20 governmental entities representing the largest economies in the world, with a group of the top 20 technology companies in the world. The report suggests the G20+20 would provide a good forum and governance to deal with cyber issues as they arise.
A second major recommendation includes the development of “the cyber version of the World Health Organization (WHO).” The new cyber governance organization would respond much the same way the WHO does when a major virus or other cyber event arises” providing direction and coordinating efforts across the world.
The third big issue addressed in the report is the need for better, consistent cooperation and collaboration between governments, public and private entities. Mr. Kerner points out that “information needs to be shared” so entities and governments can prevent cyber-attacks, and respond should they occur.
Emerging technologies and the “internet of things is fundamentally changing risk and how we need to manage the risk”, Mr.Kerner says. The governance frameworks from the 20th century are not going to work in a twenty-first century environment.
Looking ahead, Mr. Kerner says technologies like telematics are helping to provide new services to customers and data for risk evaluation and (insurance) pricing. While telematics is frequently associated with automobiles, the technology will also be used in “smart homes” with self-detection when problems (like a leaky pipe) exist. In addition, research continues on self-driving automotive vehicles that will affect risk of the future.
Mr. Kerner see a big knowledge curve in the risk management community in order to effectively assess the risk of cyber. He believes there needs to more capabilities and competency in underwriting, risk management and the management of organizations and IT. He notes that “IT professionals …don’t really understand risk management; maybe risk management professional could understand IT a bit better. Working together we can make big strides…”
For more World Risk and Insurance News from the 2015 RIMS Conference in New Orleans, visit the dedicated RIMS 2015 Channel in the WRIN.tv On Demand Library.