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Lloyd’s Of London Survey : Cyber Liability Major Threat To The Insurance Industry

Lloyd’s of London has released the results of its latest survey concerning the global insurance industry.

The survey of over 100 insurance professionals assessed corporate risk and how the current economic landscape and recent events around the world have shaped the industry’s outlook for 2012.

Over half the insurance executives surveyed anticipate a decrease in capacity and increase in prices for catastrophe coverage in 2012. Only 20 percent feel that the industry is strong enough for capacity to remain robust, while 15 percent feel it’s too soon to tell.

Exposure to reputational risk was cited as a primary concern as well. The survey shows that 61% of respondents noted that cyber liability was a major threat to the insurance industry as a whole. Recent cyber attacks have left the reputations of some companies in tatters.

These companies, many of whom conduct a great deal of business online, have been subject to steep losses in business due to their damaged reputations. Political risk was also cited as a major concern in regards to reputational risk.