In an era of rapidly escalating cyber threats, Zurich Insurance Group and Marsh McLennan have highlighted the urgent need for greater public sector involvement to tackle the widening cyber risk protection gap. Their newly released whitepaper, Closing the Cyber Risk Protection Gap, calls for innovative solutions to bridge the divide between existing risk management strategies and the overwhelming scale of emerging cyber challenges.
The paper stresses that traditional insurance models are struggling to keep pace with the growing frequency and severity of cyber incidents, leaving small and medium-sized businesses particularly vulnerable. Events such as mass malware attacks or cloud service disruptions are insurable to an extent, but larger-scale incidents, including critical infrastructure failures, remain largely uninsurable.
The Growing Need for Cyber Resilience
Cyberattacks, particularly those targeting infrastructure, pose significant risks to both economic and societal stability. Zurich’s Group CEO, Mario Greco, noted, “As insurers, we can offer some degree of protection, but we must acknowledge that large-scale, catastrophic cyber events present substantial accumulation risks that cannot be borne by the private sector alone. Therefore, enhancing cyber resilience is vital to addressing this protection gap.” He further emphasized that developing robust public-private partnerships is crucial for securing the future of the digital landscape.
Similarly, John Doyle, President and CEO of Marsh McLennan, added, “The severe threat presented by cyber risks requires collective action to bridge the protection gap. The insurance industry and the public sector must fully understand the spectrum of insurable and currently non-insurable cyber events. Through greater collaboration, we can develop innovative solutions, inform insurance buyers, enhance the cyber insurance market, and establish robust public-private partnerships that safeguard our society and economy from potentially catastrophic cyber events.”
A Path Forward Through Collaboration
The whitepaper recommends establishing a common framework that encourages data sharing between the insurance industry and the public sector. This framework could involve creating incentives as an alternative to stringent regulation, while also developing methods to assess quantifiable catastrophic cyber risks. For those risks that remain unquantifiable, the report suggests managing them through public-private partnerships.
This collaborative approach, the whitepaper asserts, is essential to sustaining economic stability in the face of increasingly interconnected global cyber threats. Whether the challenge arises from ransomware attacks, IT outages, or other digital disruptions, a combined effort between public entities and the insurance industry is key to building the necessary resilience.
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The Role of Innovation in Addressing Cyber Risks
Zurich and Marsh McLennan argue that fostering innovation in cyber risk management is critical. As both companies continue to drive forward with risk solutions, they acknowledge that the private sector alone cannot carry the burden of protecting against the most extreme cyber events. By sharing data, creating transparent models, and engaging with public entities, insurers can better anticipate and address the evolving landscape of digital threats.
For Zurich, this effort is part of a broader push towards resilience. In addition to providing insurance protection, the company focuses on offering prevention services that promote well-being and climate resilience. Marsh McLennan, too, continues to build confidence in their clients by leveraging their expertise in risk management, strategy, and people solutions.
About Zurich Insurance Group and Marsh McLennan
Zurich Insurance Group is a global multi-line insurer operating in more than 200 countries and territories. With 150 years of history, Zurich is committed to creating a brighter future by providing innovative insurance and prevention services. They are headquartered in Zurich, Switzerland.
Marsh McLennan, a global leader in risk, strategy, and people, operates in 130 countries and serves clients through its four businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. With over 85,000 employees and $23 billion in revenue, they are dedicated to helping businesses thrive in an increasingly complex world.
Zurich Insurance Group (Zurich)
It is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience. Reflecting its purpose to ‘create a brighter future together,’ Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil. The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.
Marsh McLennan
(NYSE: MMC) is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, or follow on LinkedIn and X.
