Welcome the first blog post in our ‘Bridging The Gap’ series, tailored for financial institutions. In this article we’re delving into the critical world of liability insurance and considering how an over reliance on insurance limit benchmarking may not be sufficient for an evolving global economic landscape.
Consider the case of Insurer X (name changed for confidentiality). In 2016, amid a seemingly stable financial climate, Insurer X faced a cyber-attack. Their insurance, benchmarked against peers, fell short by 60%, turning a manageable incident into a financial nightmare. Why? Because their policy limit didn't account for the rapid escalation in cyber risk costs.