And while insurers have also expressed an interest in creating new products to stop competing for the same traditional lines of business, many have still not done so, noted Latitude Brokers founding partner Andrew Brooker at the 5th Asia Marine Insurance Conference.
There is a need to provide response consultants and more importantly fit-for=purpose policies. "We need a starting point; clear fit-for-purpose base which we're not doing," he said.
Part of the reason for this is a lack of understanding of the issues involved and the ability to provide solutions to them on the part of both insurers and the insureds. Brooker suggested that a way forward for this relatively recent phenomenon might be to take the quick and effective introduction of Kidnap & Ransom (K&R) insurance when the Gulf of Aden piracy situation rose to prominence.
Many of the elements involved there such as unfamiliarity with the situation and confusion about how to react are similar to that being faced by companies with cyber crime now. Similarly the impetus to take more proactive measures onboard ships was also driven by the insurers providing the K&R insurance. This included the hardening of ships, providing of armed guards and so on.
In the same way, Brooker believed that the current inertia on the part of shipping company management in implementing cyber security measures could be overcome by demands from the insurers to step up.
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