15 February 2018

Commercial Risk Europe: Ferma plans moves to boost cyber insurance

Following the publication of its cyber risk management and governance guide in June 2017, Ferma envisages publishing guidance later this year on purchasing cyber insurance. The report would be intended as a tool to help risk managers compare different cyber insurance offerings, as well as provide advice on the preparatory steps risk managers should take in advance of buying cyber insurance.

Although the cyber insurance market is developing well, it is often difficult for risk managers to understand the coverage on offer, according to Ferma president Jo Willaert.

Ferma had previously highlighted the need for the views of corporate insurance buyers to define a common language for cyber insurance. In November 2017, the federation welcomed the European Union Agency for Network and Information Security report on commonality of risk assessment language in cyber insurance, but said the buyers’ perspective was missing.

Ferma also plans work on natural catastrophe risk in 2018. Ferma is currently working on its response to a European Commission consultation on climate change adaptation.

By focusing its work on cyber and natural catastrophe risk, Ferma is addressing two significant concerns of risk managers and their organisations. Mr Willaert noted that the recent WEF Global Risk Report highlighted a shift from economic risks after the financial crisis towards growing concern for those risks linked to technology and the environment.

Ferma is also keeping a close eye on the EC’s review of class action mechanisms in the EU. The commission is currently reviewing the implementation of its Recommendation 2013/396/EU on 15 August 2015. The resulting report will assess collective redress systems across the EU, and whether they are effective in giving consumers access to justice. “This is an issue being discussed and we remain vigilant,” said Mr Willaert.

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