European Insurance and Occupational Pensions Authority (EIOPA) will this year run their fourth Union-wide stress test exercise. The overall objective is as before to assess the resilience of the European insurance industry against unfavorable market events. However, an interesting difference from earlier exercises is that EIOPA will include a separate analysis on cyber risk this year. This will be the first time cyber risk is a part of these stress tests, which is a clear sign of an increased awareness of cyber-related risks.  

EIOPA motivate this by stating that cyber risk is now considered as one of the main emerging risks, due to the digital transformation. In just five years it has reached a high position in global business risks and large-scale cyberattacks are simultaneously considered as one of the most likely attacks to occur in the next 10 years. The results of this years exercise are to be presented in January 2019, and it will be interesting to see what is concluded regarding cyber risk exposure and best practices for counteracting cyber risks.

Interested in further reading on cyber risk and its potential effects on the economy? Then see our article series discussing this in Part I, Part II and Part III.

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EIOPA