Systemic Cyber Risk: Assessing Aggregation in Healthcare and Maritime Industries

The Lloyd’s Market Association (LMA) has released a report addressing systemic cyber risks, a growing concern as industries become increasingly digitalized. The framework offers a structured approach to identify, analyze, and quantify potential cyber scenarios, particularly those impacting critical systems in healthcare and maritime sectors.

Highlighted are two examples: healthcare’s reliance on Electronic Health Record Systems (EHRS) and maritime operations’ dependence on Electronic Chart Display and Information Systems (ECDIS). These systems, if disrupted, could lead to cascading losses across industries. The report provides insurers with tools to evaluate potential losses, from patient data breaches in healthcare to navigation failures in maritime vessels, while incorporating historical case studies to enhance scenario planning.

The framework underscores the need for collaborative efforts among insurers, regulators, and cybersecurity experts to build resilience against emerging cyber threats. This initiative aims to support underwriters, claims managers, and risk practitioners in navigating the complexities of systemic cyber exposure, ensuring robust risk modeling and preparedness.