A global survey has found that cyber risk is top of mind for the transportation industry.
The Transportation Risk Index 2016, conducted by Willis Towers Watson, ranked the top 50 risks for the industry as seen through the eyes of 350 senior executives. Asia followed the global trend with cyber coming out on top.
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The report split risks into five megatrends, headlined by cyber risk for the region, followed by geopolitical instability, changing market dynamics, complex operating models, and talent management.
“Vast opportunities lie in the gap between the transportation industry's risk-transfer needs and the insurance community's current product range,” Mark Hue-Williams, head of transportation industry said in the report.
“Seizing that opportunity will demand new levels of commitment, intellectual capital, innovation, and stakeholder support, enabling forward-looking insurers to become the strategic partners that transportation companies need.
“Managing today's complex risk environment also requires engagement from intermediaries, risk partners, and consultants. It is unlikely that a single company will have the expertise to provide cover for every facet of risk.
“Cyber-risk is clearly one area where community-based responses will provide fuller solutions.”
The transportation industry faces a host of challenges over the coming years which can be honed in on through this report to improve the strategy of insurers and brokers working in this space. Hue-Williams also stressed that brokers will need to define their risk expertise for the transportation insurance market moving forward.
Speaking on the launch of the new General Insurance Association of Singapore’s Marine Insurance Committee, Michael Gourlay, CEO of MSIG Singapore, said that cyber risk will be key over the coming decades for not only the marine industry, but all aspects of business.
“We have to take on the risks that our customers are facing. How we assess and manage cyber risk associated to marine is the same challenge we face in the non-marine area as well,” Gourlay told Insurance Business
“How do we get customers to transfer risk in a manageable way where the volatility is not too big in the short term? That is normally done through innovation and that is something that we are all grappling with.
“Individuals and companies need to know how vulnerable they are and cover those vulnerabilities and transfer some risk on to insurers where it is possible to be done.
“It will take, 10, 15, 20 years to understand the risk and see what can be transferred.”
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