More than 60% of insurance firms expect to face more than one cyber-related loss for every hundred non-cyber covered losses over the next twelve months, according to a survey by Willis Re.
Of those polled in the survey, over 60% expected cyber-attacks such as WannaCry or NotPetya to occur at least once every five years.
The IT/Utilities/Telecom industry group recorded the highest perceived property silent cyber risk factor. Forty two percent of firms in this industry said that they expect ten or more cyber-related loss for every hundred non-cyber covered losses.
The study also revealed a rise in the silent cyber exposure of other liability, with 62% citing the silent cyber risk factor in this area to be above 1.01 in 2018. The figure represents a surge from last year, when 35% held a similar stance.
The silent cyber risk factor in property was believed to be above 1.01 by 62% of respondents in 2018, compared to 47% of respondents last year.
In errors and omissions (E&O) and directors and officers (D&O) business lines, over 30% of respondents estimated their silent cyber factor to be 1.10 or above.
Willis Towers Watson global head of cyber risk solutions Anthony Dagostino said: “The insurance market considers ‘silent cyber’ or cyber-related losses under policies where cyber risk isn’t specifically included, to be a far greater risk than ever before.
“The 2017 WannaCry and NotPetya attacks highlighted this risk and potential damage across all business areas – causing significant concern around silent cyber. This increased risk perception has highlighted the need for specific cyber coverage, but competitive market conditions are limiting the scope for coverage or pricing adjustments to be made in other lines of business.”