INSURANCE

CYBERATTACKS ARE GROWING INCREASINGLY ADVANCED

A CYBERSECURITY VENTURES REPORT REVEALED THAT IN 2023 , AN ATTACK TOOK PLACE EVERY

INCIDENTS DAILY

THE EUROPEAN UNION ESTIMATES THE WORLDWIDE YEARLY COST OF CYBERCRIME TO EXCEED

Challenges and benefits of DORA compliance “ There are a few challenges ahead for insurers in securing compliance with DORA . As a starting point , logistical and financial implications inevitably arise throughout the implementation of new policies , rules and processes . Incident management system , mandatory threat led testing , monitoring of their ICT service providers ’ own compliance with DORA ’ s standards and employee training are just some examples of the new responsibilities imposed upon insurance organisations , the cost of which is likely to be material ,” says Breavington .

“ All entities within scope now have less than four months to become fully compliant with the regulations before January 17 , 2025 .”

On the flip side , one of the key benefits that DORA has brought to insurance carriers and market participants in scope of the legislation , is the harmonisation of previously uneven national regulatory and / or supervisory rules . Prior to DORA , the insurance industry was subject to a multitude of regulations concerning ( directly or indirectly ) their digital operational resilience . DORA is likely to render structural and logistical benefits as well as cost savings for insurance organisations , as they now have a single , standardised digital resilience framework system to comply with when providing services in the EU .

In addition to harmonisation , the intelligence sharing mechanism established by the regulations provides a platform for collective knowledge and expertise . Real time threat intelligence sharing should hopefully enable the exchange of critical information such as emerging threats and indicators of compromise , thereby facilitating faster detection , stronger response and a consistent approach to cybersecurity . Access to shared intelligence enhances situational awareness , allowing insurance organisations to make informed decisions and to prioritise risk management .

86 September 2024