Helvetia Holding AG / CH0466642201
21.08.2024 - 12:43:36Helvetia's symposium reveals the global threat and solutions in the fight against cyber crime
| Helvetia Holding AG / Key word(s): Miscellaneous 21.08.2024 / 12:43 CET/CEST Media release Basel, 21 August 2024 Representatives from the private sector, research, government and politics agree that the risk of cyber attacks will continue to increase. Targeted attacks on critical infrastructures could entail global consequential damage of over USD 1,000 billion. The insurance gap in the event of large-scale cyber attacks remains substantial in Switzerland and throughout the world. The insurance industry must continue to drive market penetration with cyber policies. Comprehensive user awareness and building the greatest possible resilience among companies and individuals is crucial in the fight against cyber criminals. Cooperation and coordination between all relevant stakeholders from business, science and government must be strengthened. Switzerland as a possible mediator in the struggle for international solutions. The number of cyber attacks worldwide increased significantly within the past year. In the second quarter of 2024 alone, the number of reported incidents increased by around 30% compared to the same period last year. In 2023, the number of cyber attacks in Switzerland increased by 61% compared to the previous year. Almost half of all large Swiss companies were attacked at least once by cyber criminals. Current findings suggest that this trend will intensify throughout the course of the year. In view of this trend, the Federal Council published a report this summer that emphasizes the need to coordinate prevention and repression, while at the same time calling for even greater cooperation between various stakeholders and more intensive preventive work in order to protect the population and businesses. Helvetia Insurance highlighted early on the need for increased cooperation between business, science and government, especially in order to minimize the risks of large, systemic cyber attacks, which require high cover capacity and for which – if they did occur – only a fraction of the expected loss would actually be insured. Market penetration for cyber insurance still negligible In order to discuss the possibilities of minimizing this insurance gap and to show possible perspectives for the development of sustainable cyber resilience in Switzerland, well-known representatives from the fields of business, science and government came together for the second time since 2023 for a symposium entitled "Developing Cyber Resilience – Trends and Perspectives", on the initiative of Helvetia. Host and Helvetia Switzerland CEO Martin Jara made it clear in his opening speech: "Although progress has recently been made in the fight against cyber crime, there are still obstacles that make it difficult to improve cyber resilience effectively." Martin Jara also believes the insurance companies themselves have a responsibility: "In recent years, the industry has provided balanced insurance offers for companies and private individuals and invested a lot in increasing resilience, yet market penetration is still negligible." However, the largest possible number of insured companies would be an important contribution to minimizing uncovered damage in the event of a major incident. The Swiss Insurance Association (SIA) calculated the risk of a major systemic cyber attack for Switzerland at the end of last year in cooperation with the risk assessor Moody's RMS. Laurent Marescot, Senior Director and catastrophe risk management expert at Moody's, currently assumes that there is a one percent chance of a cyber incident in Switzerland each year that would entail a total economic loss of over CHF 2.5 billion. When calibrating a corresponding risk model, the fact that comparable historic events cannot be used in the case of cyber incidents and that the effect of such events – unlike damage due to natural disasters – cannot be clearly defined geographically turned out to be particularly challenging. Resilience of society must be increased in the long term To reduce the existing insurance gap, it is essential from the point of view of the business representatives present to sustainably improve the resilience of Switzerland as a business location in the long term. However, according to Klaus Julisch, partner at Deloitte (Switzerland) AG, human nature often stands in the way. An attitude of "what may not be, cannot be" and a naive faith in technology often open the door to attackers. In the current situation, however, it is almost essential for survival to check every IT project for its cyber security and to keep this monitoring up to date. Projects that do not meet these requirements are no longer justifiable today or, in the words of Klaus Julisch: "Digital projects that cannot afford cyber security do not have a business case." Marc Holitscher, National Technology Officer and Member of the Board at Microsoft Switzerland, focuses on the possibilities of artificial intelligence in building resilience against cyber criminals: "AI already allows for a coordinated defence across all threat vectors in order to ultimately ensure comprehensive transparency and to combat possible threats." But just as important from Holitscher's point of view is the know-how relating to strategies and procedures of cyber criminals, which today can be built up much more efficiently thanks to generative AI solutions, which in turn allows for a more targeted fight against possible attacks. Responsibility starts with the individual IT user Ultimately, as all speakers agree, an efficient fight against cyber attacks must start with the users of IT infrastructures. This was also highlighted by Christoph Guntersweiler, Head Engineering Switzerland at Helvetia, who in his remarks pointed out the importance of continuing to raise awareness among the workforce of SMEs and large companies: "Only those who, in addition to other measures, regularly and comprehensively sensitize in-house users to cyber risks can consistently protect themselves against attacks." Large-scale global loss potential Despite the high awareness of cyber risks, systemic attacks by criminal or political players on critical infrastructures remain a latent risk. Taking into account the existing insurance gaps, the global net loss potential turns out to be colossal. Kai-Uwe Schanz, Deputy Managing Director of insurance think tank The Geneva Association, focuses on the global dimensions of coordinated malware attacks or global cloud outages with losses ranging from USD 50 billion to USD 200 billion. In the event of targeted attacks on critical infrastructures such as the global power supply, the consequential loss would amount to more than USD 1,000 billion. Public-private partnerships as a potential solution From the point of view of The Geneva Association, public-private partnerships (PPPs) are indispensable for such incidents. The COVID pandemic in particular showed that international risk scenarios and their costs can only be mastered with the involvement of as many state and scientific institutions and organizations as possible and through innovative approaches. Manuel Suter, Deputy Director of the National Cyber Security Centre (NCSC), Bernhard Maissen, Director General of the Federal Office of Communications (OFCOM), and Vincent Lenders, Director of the Cyber Defence Campus at the Federal Office for Defence Procurement, proved that the dimensions of the cyber threats are taken seriously by the state. All experts agree: the risk of cyber attacks will continue to rise. The reasons for this include an ever-greater availability of hardware and software worldwide, steadily increasing computer capacities and, as a result, ever-increasing networking. At the same time, the extent to which criminals can be prosecuted via international sanctions is still limited. Switzerland can contribute to international cooperation But Switzerland is officially ready – and that's the good news – to make its contribution towards greater cyber security. The NCSC proposal is also interesting: building on its role as a mediator in international conflicts, Switzerland should make Geneva available as a venue for international debates on cyber security and actively promote an open, free and secure cyberspace at an operational and strategic level, as well as the comprehensive recognition, observance and enforcement of international law in the digital arena. As a link between universities, industry and the federal government, the Cyber Defence Campus already operates five innovative PPP models, which could also serve as blueprints for further initiatives of this kind. Politicians have to create optimal framework conditions The bottom line is that Switzerland is doing a lot in all areas to stand up to cyber crime. Ultimately, however, in order to be prepared for major cyber incidents, increased cooperation and coordination between all relevant stakeholders in business, science and government is essential. However, this requires the full support of the political partners. The final panel discussion with the members of the National Council and security politicians Michael Götte (SVP/SG) and Fabian Molina (SP/ZH) showed that the topic is recognized at this level. Despite the differences in the specific structure, both members of the Federal Council's Security Policy Committee (SPC) agreed that Switzerland urgently needs to catch up on cyber security and that it is now up to the politicians to create optimal framework conditions as quickly as possible for the stakeholders involved. Eric Zeller Senior Communications Manager / Media spokesperson Phone: +41 58 280 50 33 media.relations@helvetia.ch About the Helvetia Group Helvetia Group, with its headquarters in St. Gallen, has grown since 1858 to become a successful insurance group with over 13,800 employees and more than 7.2 million customers. It has been enabling its customers to seize opportunities and minimise risks for all that time – Helvetia is there for them when it matters. Helvetia is the best partner and is present everywhere that protection needs arise, with insurance, pension and investment solutions from a single source as well as simple products and processes. The insurance group knows the business, from mobile phone insurance and insurance cover for the Gotthard Base Tunnel to the long-term investment of customer assets. Helvetia develops and opens up new business models with enthusiasm and drives forward its own business in a powerful and future-oriented manner. It acts with foresight and responsibility in everything it does: for the benefit of its shareholders, customers and employees as well as its partners, society and the environment. Helvetia is the leading all-lines insurer in Switzerland. In the Europe segment comprising Germany, Italy, Austria and Spain, the company has firmly rooted market positions for generating above-average growth. In the Specialty Markets segment, Helvetia offers tailored special insurance and reinsurance cover worldwide. With a business volume of CHF 11.3 billion, Helvetia generated underlying earnings of CHF 372.5 million and an IFRS net income of CHF 301.3 million in the 2023 financial year. The shares of Helvetia Holding AG are traded on SIX Swiss Exchange. Cautionary note This document was prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Helvetia Group. The German version of this document is decisive and binding. Versions of the document in other languages are made available purely for information purposes. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, where any information and statistics are quoted from any external source such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained in this document are as up to date as is reasonably possible but may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document. This document may contain projections or other forward-looking statements related to Helvetia Group which by their very nature involve inherent risks and uncertainties, both general and specific, and there is a risk that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include: (1) changes in general economic conditions, in particular in the markets in which we operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in laws and regulations, including accounting policies or practices; (6) risks associated with implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) mortality and morbidity rates; (9) policy renewal and lapse rates as well as (10), the realisation of economies of scale as well as synergies. We caution you that the foregoing list of important factors is not exhaustive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forward-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherwise required by applicable law. End of Media Release |
| Language: | English |
| Company: | Helvetia Holding AG |
| Dufourstrasse 40 | |
| 9001 St.Gallen | |
| Switzerland | |
| E-mail: | media.relations@helvetia.ch |
| Internet: | www.helvetia.com |
| ISIN: | CH0466642201 |
| Valor: | 46664220 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1972513 |
| End of News | EQS News Service |
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