Cyber Insurance Rates Fail to Match Catastrophe Risk-Chubb CEO
July 30, 2021
Rising prices of insurance against cyber attacks fail to take account of the potential catastrophic effects of a widespread attack, Chubb Ltd. Chief Executive Evan Greenberg said on Wednesday.
“The pricing environment is pretty good,” Greenberg said on a conference call. “But … that is not addressing by itself the fundamental issue…. Like pandemic, cyber has a catastrophe profile to it.”
With increasing digital interconnection in the world, the concentrations of exposure were only growing, Greenberg said.
Chubb’s underwriting activities are also exposed to systemic risks arising from cyber threats, Greenberg said, adding that the company is beginning to address it.