...Key Growth Opportunity: Cyber insurance represents a key growth opportunity for the global insurance industry. According to a report by Aon's Global Risk Insight Platform cyber risk cover has grown at a compound growth rate of 38% annually between 2009 and 2014. This reportedly made cyber cover Aon's fastest growing product during the period while most traditional (re)insurance lines are currently experiencing stagnation, decline or only very modest growth. Possible Credit Implications: Cyber risk has the potential to cause significant losses due to substantial aggregation risk and the increasing sophistication of cyber attacks. An insurer could suffer a sizeable loss leading to reductions in risk-adjusted capitalisation, which in an extreme case could adversely affect ratings, depending on the magnitude of the loss. Insurers' Internal Exposures: Insurers face the same internal operational risks from cyber exposures as their insured customers. In addition, the insurance sector is increasingly...
