Cyber spotlights on the marine industry: Identify, assess, protect

This spotlight delivers an overview of the latest cyber risks impacting the sector generally, including recent incidents and emerging threat vectors. We also highlight our insurance solutions that can address the cyber vulnerabilities faced by the marine industry. Use our insights to enhance your organisation’s cyber risk management approach.

What cyber incidents have we seen from the marine industry?

The increasing frequency of these incidents underscores the escalating cyber risks within the marine sector. A thorough understanding of the scope and ramifications of these events are instrumental in refining your organisation’s cyber risk management framework.

Cyber insurance claims we have seen from the marine industry

Below is a selection of recent anonymised claims managed by WTW.

Malicious data breach

A phishing attack on a company's network exposed confidential information. The suspected cause of the event was employees clicking on rogue links.

Ransomware attack

A third party gained access to a company's network, encrypting and exfiltrating data. Cyber insurers indemnified the costs incurred by the company.

Payroll data breach

The company’s server, which hosts payroll data was accessed by criminals. The data was published on the internet for an unspecified period.

Ship computer systems hacked

The company was able to access specialists under its cyber policy. The affected exchange server was rebuilt.

Accidental data breach

The company discovered faulty programming in its network allowing users without authority to access the details of other clients.

Source: WTW proprietary claims data

Our perspective on cyber market trends for the marine industry

• GPS Interference and AIS Spoofing: Shipowners have a dependency of GPS to navigate voyages efficiently and safely. The U.S Coast Guard Navigation Center data shows an increase in GPS Interference, which can lead to significant consequences such as collisions and severe delays due to misrouted cargo.
• Increased autonomy in the maritime sector raises cyber risk: The move by shipowners and operators of ports and terminals towards greater reliance on IT and OT to fulfil key aspects of their operation can undoubtedly deliver vital efficiency gains. At the same time, however, this leaves such operations more exposed to malicious cyber activity aimed at disrupting such operations for both financial and political purposes. (The Maritime Executive, Jessie Hamill-Stewart and Andrew Sallay, 2023).
• Legislation to force change on maritime sectors’ approach to cyber security: The NIS 2 Directive must be implemented by European Union (EU) member states by 17 October 2024. The Directive aims to achieve a common level of cybersecurity across the EU, imposing stricter cyber-security requirements with regard to risk management, incident reporting and the exchange of information. It comes in response to the escalating threats brought on by digital transformation and the rise in cyber-attacks, and replaces the Network and Information Security (NIS) Directive of 2016, which will be repealed with effect from 18 October 2024.

WTW insight:

The cyber insurance market has traditionally had a restricted appetite towards risks within the marine industry due to:

1. 01

   A high dependency on out dated software, increasing the possibility of vulnerability exploitation.

2. 02

   Both shipowners and ports and terminals are deemed national infrastructure and play a critical role in the global economy, positioning both operators as potentially higher target.

3. 03

   Industry unique systemic exposure via the utilisation of common systems/vendors within the supply chain.

4. 04

   A high dependency on technology both onshore and offshore, leading to increased business interruption exposure.