Tom Morse and Linda Sheldon, from DWF Legal Operations division, recently attended the Cyber Liability Insurance ExecuSummit and returned with a wealth of knowledge from industry experts and thought leaders. Here are their key takeaways from the event:
1. Escalating Cyber Threats
The year 2023 witnessed an increase in cyber incidents, doubling the number recorded in 2022. This highlights the growing sophistication and persistence of cyber threats; from ransomware attacks to data breaches, organisations across various sectors face a constant barrage of cyber threats.
2. Surge in Class Action Lawsuits
The fallout from cyber incidents extends beyond financial losses, as evidenced by the surge of class action lawsuits. For example, a single breach effecting 5 million data subjects resulted in a staggering 40 separate class action suits. This highlights the urgency for robust cybersecurity and risk management strategies.
3. Shift in Target Industries
Traditional targets of cyber attacks, such as financial institutions, have been joined by healthcare and public utilities as targets.
4. Rising Cost for Carriers
The growth in cyber incidents has created skyrocketing costs for insurance carriers.
5. Role of AI in Cybersecurity
Artificial Intelligence emerges as a double-edged sword in cybersecurity. While AI-driven threats pose significant challenges, AI also holds promise as a vital tool in the claims handling process. Innovations leveraging AI can enhance detection, response, and mitigation of cyber risks, introducing a new era of efficiency in cyber insurance.
6. Disruption of Legal Services
AI technologies are reshaping the legal world, especially when it comes to legal services. The Big 4 are leveraging AI to offer streamlined solutions to clients to diminish the need for outside counsel, demonstrating the evolving landscape of legal and insurance industries in response to technology.
The Cyber Liability Insurance Execusummit highlights the challenges and opportunities in cybersecurity and insurance. DWF is uniquely positioned to assist clients in navigating the evolving landscape of cyber risks by providing legal expertise, innovative solutions and strategic guidance.
Get in touch with our team for more information on how to protect your business from cyber threats and more.
