Cyber and beyond: Insurance and risk in a digitally interconnected world

For better or worse, digital technologies are radically changing almost every aspect of our lives. As the world becomes “smaller” — increasingly interconnected, instrumented and intelligent — virtually every interaction is affected, including the way people talk to each other and how they communicate to the organizations with which they do business. Organizations interact differently with their industries, partners, suppliers and customers. Business models are affected, and entire industries are transforming.

At the core of digital disruption is the ability to connect everyone to everyone and everything to everything, exchanging data and information in vast quantities and at tremendous speeds. This data exchange has enormous advantages, but comes at a price: data can be lost, stolen or tampered with, and the entry points of digital interconnectedness can be used and misused by third parties to wreak havoc on any person or organization that uses digital technologies for transactions.

The Insurance Services Office, an advisory and rating organization for the property and casualty industry, lists “cybersecurity” as the top emerging business issue today, ahead of the Internet of Things (IoT), drones and social media. All of these are facets of digital interconnectedness.

How can and do companies assess and prepare for the risks of digital interconnectedness? How do technology, employee skills and other factors influence these risks? To gain insight into these questions, we surveyed 800 insurers and 1,000 executives from other industries globally on their actions and expectations about the risks of digital interconnectedness.

We found that outperforming organizations manage risks of digital interconnectedness, using traditional insurance and other measures. They embrace interconnectedness to create enhanced security solutions around prevention and mitigation, and they collaborate extensively within and outside their own industries, adapting their business models and giving rise to new modes of value creation.

Business Contact Information

This question is required

This question is required

This question is required

This question is required

Please enter a valid email