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Solving cyber: it’s just a matter of time Mr Burke says the insurance industry is starting to make progress in tackling cyber risks. “Previously, it’s been more about focusing on rectification and providing cover around rectification rather than indemnification,” he tells Insurance News. “Partly that’s because people are trying to understand the nature and the scope of the risk. “After all, until you can define the risk, how do you price it?” Product innovation is necessary, but Mr Burke sees the impact of “regulation and the regulators, and solvency and capital adequacy provisions” preventing the market from innovating. “I particularly challenge Lloyd’s on this, because it was always a market that innovated. The syndicates could take the gamble, an educated risk. “But now regulators and the franchise board get in the way of that, so innovation’s gone to the very big insurance companies. “We’re beginning to see a shift in the ways [risks such as cyber] are handled, and I think over the next few years we will find we have a market that actually starts to provide solutions. “But we’ve got to work with technology companies, and I think capital providers want to see how we can scope the nature of the risk, what is really insurable and what isn’t.” He says cyber is “the most important debate that’s happening around every single board table around the world – the small and the large. And nobody yet has been able to totally define it, because it’s still an emerging and evolving risk. “We at JLT are spending a lot of time and resources on this. We’ve brought a lot of capability into it and we’re providing lectures and workshops and sharing knowledge to educate clients and help them think through the challenges. “The market will ultimately find a solution.”

Attracting top professionals: JLT Group Chief Executive Dominic Burke

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october/november 2016

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