Energy Companies Need Insurance Cover for Cyberattack “Time Bomb”Source: Reuters | 9 April 2014
Energy companies have no insurance against major cyberattacks, reinsurance broker Willis said on 8 April, likening the threat to a “time bomb” that could cost the industry billions of dollars.
Willis highlighted the industry’s vulnerability to cyberthreats in its annual review of the energy sector’s insurance market, which called on insurers to find a way to provide cover.
“A major energy catastrophe—on the same scale as … Exxon Valdez or Deepwater Horizon—could be caused by a cyberattack, and, crucially, that cover for such a loss is generally not currently provided by the energy insurance market,” the insurance broker said.
Most insurance products currently available will cover minor things such as data losses or downtime caused by IT issues, but not major events like explosions at multiple facilities triggered remotely by hackers, Willis said.