TERRORISM & CYBERCRIMES ARE UNDER-RATED RISKS Published: insurancenews.au 7 May 2014 Computer crimes such as hacking are among the most under-rated risks businesses face, according to a study by global broker Aon. The threat from terrorism is also underestimated, the poll of more than 100 organisations across a range of sectors and countries shows. The findings feature in a follow-up to last year’s Aon Global Risk Management Survey. It asked which threats in the previous report were under-rated. Some 83% of respondents believe cybercrimes were ranked far too low at No.18 in last year’s survey. “Cyber-theft, fraud, sabotage, espionage, and hacking are more frequent in the social media age and the associated costs with information security breaches are increasing for entities in every industry sector,” Aon says. “The legal exposure, reputational harm and business interruptions that may result can wreak havoc on a company’s bottom line.” With the US Terrorism Risk Insurance Act (TRIA) due to expire at the end of this year, 52% of respondents agree terrorism was rated too low at No.46. “In response to TRIA’s uncertain future, Aon has seen a 30% increase in purchasing within the stand-alone terrorism market,” Aon Risk Solutions Property Practice MD Aaron Davis says. “If it is not extended, the loss of direct access to TRIA will substantially reduce terrorism limits for US assets. “Additionally, the private market most likely will not have enough capacity to take on this added risk. “Companies should be in a planning position right now to prepare for this possible outcome.” The risk of pandemic, ranked No.44, was considered underrated by just 39% of respondents. Aon says it is surprised at this lack of concern: while uncommon, the impact of a pandemic on a business “can be incredibly high and should not be underestimated”. Contact us for a quotation and protect your business today! alwinsurance.au 0400 840 397
Posted on: Mon, 12 May 2014 11:49:58 +0000
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