There is a positive correlation between insurer credit ratings and cybersecurity, according to a new report from Fitch Ratings.
In this report, we used the SecurityScoreCard (SSC) rating platform to analyze the cybersecurity risks of more than 400 insurers worldwide, or about two-thirds of the world’s premiums. We found a positive correlation between the credit rating assigned by the company’s Fitch and the SSC’s cybersecurity grade. This means that insurers that prioritize careful management of their credit risk also appear to be better at managing cyber risk.
The report also delved into key financial attributes such as capital strength, profitability and size, as well as the correlation between SSC grades and other attributes such as countries and sectors, Fitch said.
Keith Buckley, Head of Global Insurance Group at Fitch, said: “Ransomware in particular is an industry issue and growing concern. As a result, cyber is becoming more and more important to our assessment analysis.”
According to Fitch, SSC’s cybersecurity grades provide insights that traditional financial statements and credit analysis do not provide.
“Instead, system attributes such as network segmentation, attack surface, endpoint security, and digital footprint are paramount to understanding insurers’ cyber health,” said Fitch Director Gerry Grombiki. “The partnership between Fitch and SSC gives Fitch insights into these considerations and better assess cyber risk.”
Credit-rated insurers have enhanced cybersecurity – reports
Source link Credit-rated insurers have enhanced cybersecurity – reports