GFIA: Cybercrime is increasing as criminals exploit the COVID-19 pandemic

4 November 2020 — Alexandra GUZUN
Cybercrime is the new challenge that the COVID-19 pandemic brings. The changes that took place in our lives such as: the way we learn, shop and work caused by the COVID-19 pandemic have increased the digitalization trends, but this is not necessarily a good strategy as these also bring implication for cyber risk.

The GFIA annual report has presented an analyze regarding the cyber-attacks that increased during the last period due to the pandemic situation. In fact, the effects of the COVID-19 virus have raised the demand of cyber insurance, especially because of the rapid evolution in the methods of cybercriminals.

"Annual cyber insurance premiums globally currently stand at around $5bn, but the yearly costs of cybercrime already exceed USD 700 billion" estimates a September 2020 report by S&P Global Ratings.

GFIA is considering what the pandemic will mean for the supervision of cyber underwriting in the face of increased risks, and whether it will lead to more scrutiny and calls from governments for artificial standardization. So, as the cyber-attacks are growing, there are already signs of constraining the underwriting criteria.

All these effects have also increased the need of the governments to analyze more the situation and provide new changes by implementing educational campaigns considering the insurance industry.

Commenting on the OECD report on January 2020, GFIA considers that the alignment of the terminology of risks could be a good point for the customers to have a better understanding of what cyber insurance means and should not exist a forced standardization.

Moreover, the cyber risk working group is expecting the IAIS paper on issues related to cyber underwriting that should be sent before end of 2020 and they are ready to respond to it.

More about the cybercrime and the GFIA opinions on this subject you can find out by consulting the GFIA Annual Report.

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