Page 21 - Turkinsurance Digital Magazine

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Vehicles have become autonomous, and
we will also discuss cyber risks in motor
insurance

According to insurers, as autonomous vehicles continue to in-
crease, cyber risks will also be discussed in motor insurance. Cy-
ber attacks have increased three to four times in recent years.
Hackers are rapidly advancing their skills. Within an average
of 5 years, we will be discussing cyber risks in motor insurance
because vehicles have become autonomous. Today, there are
hackers who can hack into airplanes. This poses a threat to these
vehicles as well. Considering all these factors, insurers believe
that motor insurance will inevitably become intertwined with cy-
ber products in the future.

In Chubb’s article on Catastrophic Cyber Risks, the situation is
expressed as follows:

“Just like pandemics, cyber incidents can lead to losses that are
not limited by time or geography. This is no longer a theoretical
concept. Unlike previously occurring sudden destructive events,
we are witnessing a continuous escalation of cyber risks. Know-
ing this in advance provides an opportunity to establish cyber
protection and economic measures before the risk occurs.

In recent years, with the coverage of losses incurred by numerous
institutions worldwide under the protection of insurance compa-
nies following significant cyber incidents, the cyber insurance
service has been fully realized. In today’s world, basic coverages
that encompass intervention expenses for cyber attack incidents,
first-party cyber risk, third-party cyber liability, and profession-
al liability/errors and omissions provide significant risk transfer
cyber risks. The report stated, “Geopolitical instability increases and risk management solutions to all organizations, regardless
concerns about cybersecurity risks: The escalation of geopolitical of scale or industry. Furthermore, cyber risk management servic-
tension and the increasing digitalization raise concerns about po- es offered by insurance companies have contributed significantly
tential large-scale cyber attacks. Cybersecurity risks continue to to helping companies reduce their risks and improve their front-
be among the most significant risk factors in this year’s report.” end technological measures. On the other hand, incident response
teams have been effective in enabling companies to get back on-
Insurance is also required for individual line in a shorter time after a cyber incident.
risks Despite organizations becoming more knowledgeable about cyber
risks and their consequences, cyber incidents and threats contin-
Experts state that cybersecurity insurance provides protection ue to increase and evolve. In 2020, over 18,000 new software
against digital risks such as identity theft, theft, and password theft, vulnerabilities were disclosed, nearly three times the number in
which we have encountered frequently in the last two years. They 2015, and this number continues to rise. Additionally, approx-
emphasize that cyber insurance also provides individual security imately 1.2 million new malicious software threats were identi-
against these risks. Industry officials highlight that cybersecurity fied in 2020, more than double the number recorded in 2015.
insurance will be one of the fastest-growing sectors in the next 10 Furthermore, 85% of successful security breaches in 2020 in-
years. volved a human element, such as social engineering practices.”