A global survey has found that cyber risk is the biggest concern for transportation companies, a revelation that could open up new markets for brokers.
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. Australasia followed the global trend with cyber coming out on top.
Insurance Business first global Cyber live streaming event is on Nov 2nd
For brokers operating in the transportation space, Mark Hue-Williams, head of transportation industry at Willis Towers Watson, said that a clear definition of their expertise will be key.
“Intermediaries will need to define clearly their specific areas of risk expertise, as well as the areas where they could offer proprietary access to expert third-parties to complete the picture. That is a trusted partnership,” Hue-Williams said.
Meena Wahi, director of Data Privacy Insurance, told Insurance Business
that she agreed with the findings of the report as transportation companies have “the most extensive supply chains,” which opens up the industry to risk.
“For those brokers that specialise in the business aspect of marine or the business aspect of aviation, they have to understand that now they are not just dealing with the technical aspects of how those industries’ operate,” Wahi said.
Wahi added that brokers must map out the risk more and understand the business issues, the supply chains, and the customers.
“It helps if brokers can educate themselves a bit more; it won’t require every broker to have an MBA in the future, but I see something like that happening because of complexities.
“Brokers have to inform their clients and if the broker does not abide by the duty of care, and they are the broker the company has used for many, many years and the business expects them to deal with their inquiries, then the company could potentially sue the broker.
“I do feel that the complexities are not just impacting businesses but even service providers like brokers. They are being forced to understand this change.”
Wahi stressed that while transportation has been highlighted, brokers would be well suited to approach all clients when it comes to cyber cover.
“It has become a risk for everyone,” Wahi said.
“We all operate through digital platforms and we all have digital identities so it is actually a risk for every person and every business.”
APRA: Almost half of insurers suffer cyber attack
Industry has more work to do on key emerging risk