GCube Insurance, a provider of insurance services for renewable energy projects, has emphasized that renewable energy asset owners relying more heavily on digital systems during the current period of lockdown and beyond must adapt to increased exposure to cyber threats such as ransomware, denial-of-service and human error.
Recent cyberattacks on global renewable energy businesses have underlined the scale and nature of this previously under-reported threat and have added to the already significant demand for GCube’s non-damage cyber risk insurance product as increasing numbers of firms seek to mitigate their potential exposure to business interruption and other cyber losses.
The emergence of COVID-19 has led to an unprecedented lockdown worldwide, leading many renewable energy companies to take advantage of remote monitoring systems and working practices to try and ensure ‘business as usual’ despite the disruption.
Though cyberattacks such as ransomware and denial-of-service remain significantly under-reported in the renewable energy industry, recent high-profile examples in the UK, the United States and Portugal have provided additional public demonstration of the need for asset owners to invest in cyber insurance products, which can provide financial cover in these ‘non-physical damage’ events.
“Digitalization of course drives significant efficiency gains for businesses and is now a necessity for renewable energy companies looking to maintain continuity during the COVID-19 pandemic,” said Geoffrey Taunton-Collins, senior analyst at GCube. “But with portfolios now at greater risk of cyberattacks, we are seeing even greater demand for our cyber insurance product as project owners are increasingly realizing the very real threat that cyberattacks pose.”
GCube’s research suggests that though cyberattacks are estimated to be responsible for over $3 trillion in losses annually — and are set to rise — the cyber insurance market last year was only worth approximately $5 billion, with many insurers not yet providing cyber coverage.
News item from GCube