Cyber Risk Takes Center Stage at AIRMIC 2023 Conference
The AIRMIC 2023 conference, held in Manchester, highlighted the growing concerns surrounding cyber risk in the insurance and risk management industry. With climate exposure and weather-related risks also keeping industry professionals awake at night, the conference provided a platform for experts to delve into these pressing issues.
The AIRMIC conference, which saw approximately 8,000 delegates in attendance, showcased the Association of Insurance and Risk Managers in Industry and Commerce’s commitment to addressing the challenges faced by professionals in the field. The event took place at the historic Manchester Central Convention Complex, a building with a storied history as a major train station hub in the region.
One of the top concerns discussed at the conference was cyber threat, which was deemed to be a significant risk overshadowing even climate exposure and geopolitical risks. Captive insurance, a form of self-insurance, also found itself intertwined with the topic of cyber risk during the conference.
Aon Insurance Guernsey’s Managing Director, Paul Sykes, played a prominent role at the conference, delivering a speech and sharing his insights on the industry. Sykes highlighted the unique nature of cyber risk, noting that it is one of the few new classes of insurance to emerge in an industry that has been largely unchanged for the past three centuries. As more aspects of modern life move online, cyber threats have become increasingly prevalent and complex, making it a challenging area for insurers and risk managers to navigate.
While the insurance industry grapples with the intricacies of cyber risk, captive insurance companies have begun to play a role in providing coverage. In recent years, the use of captives for cyber cover has doubled as they fill gaps in the market and reinsure high-value cyber risks. This shift in the use of captives reflects the evolving landscape of risk management and the industry’s response to emerging threats.
Away from the realm of cyber risk, the conference also explored the emergence of new domiciles for captive insurers, such as France’s onshore regime and Lloyds of London’s proposition. However, despite these developments, Guernsey remains the domicile of choice for UK captives and many European clients, according to experts at the conference.
Sykes highlighted Guernsey’s commitment to staying at the forefront of the industry through strategic alignment between the insurance sector, government, and regulators. Initiatives such as virtual asset service provider regulations and ongoing advancements in anti-money laundering and company law revisions ensure that Guernsey’s finance sector remains globally competitive and compliant with international standards.
Overall, the AIRMIC 2023 conference provided a platform for industry professionals to confront the pressing challenges posed by cyber risk and other emerging threats. As the insurance and risk management industry continues to adapt to the changing landscape, conferences like these play a crucial role in fostering dialogue, sharing insights, and charting the way forward.
For more information about Guernsey’s finance industry, please visit www.weareguernsey.com.
