A.M. BestTV

Cyber Is Growing Into the Risk That 'Connects Them All'

The European Union’s (EU) General Data Protection Regulation (GDPR) is a law coming into force

April 20, 2018 — OLDWICK, N.J.–(BUSINESS WIRE)–In a meeting at the Risk and Insurance Management Society, Inc.’s (RIMS) conference in San Antonio, TX, a panel of insurance and risk management executives said more insureds are becoming aware and asking for broader coverage of the many forms of loss that can be triggered when an organization’s network is compromised. Click here to view the entire program.

The European Union’s (EU) General Data Protection Regulation (GDPR) is a law coming into force on May 25 on data protection and privacy for all individuals in the EU, as well as the export of personal data outside the EU. Emy Donavan, global head, cyber, Allianz, spoke about GDPR and how it will change the way in which businesses handle customer data.

“GDPR really represents a very, very new threat for our insureds because it includes not just the necessity of notifying a client, but the right of a client to be forgotten,” said Donavan. “This means a company has got to map all of its data and know within its systems where that data resides, as well as have that data on systems that can actually be in some way modified or deleted. That presents, especially for insureds with legacy operations, a pretty significant challenge.”

Risk Mitigatin

The panel oalso addressed the issue of risk mitigation. “You got to start and treat it as an operational risk,” said Bob Parisi, managing director, Marsh. “If you don’t, and you keep it as a technology risk and limit it there, you’re asking for trouble. You’re ignoring the right way to deal with a fundamental risk of doing business.”

Other people that appear in this episode:

  • Sam Levine, vice president, professional risk solutions, Aon; and
  • Scott Stransky, assistant vice president, director emerging risks modeling, AIR Worldwide.

For full video coverage of RIMS, including exclusive executive interviews, visit http://www.ambest.tv/rims18.

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A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.