Evolving Cyber Trends and Risks
Cyber horizon with James Doswell
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A red umbrella logo: Travelers. Text: Visit travelers.co.uk/cyber or email [email protected]. A man in a grey suit with a green and white polka dot tie sits in an office.
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INTERVIEWER: James Doswell is Senior Risk Management Consultant for Cyber at Travelers Europe. He joins me now. James, what were some of the main trends and risks for the cyber market in 2024?
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James, wearing a grey suit, sits across from the interviewer. A table with glasses of water is between them. Text: James Doswell. Senior Risk Management Consultant, Cyber.
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JAMES DOSWELL: So the insurance market remained very soft. Effectively from a risk perspective, we saw quite significant continued phishing attacks. So by the end of 2023, 39% of all of our claims coming in had involved phishing in some way. So that was quite a significant figure.
Since then, we've actually seen much more in the way of ransomware. Certainly, last year was a real significant uptick in vulnerabilities. And finally, we've had a very, very significant uptick in AI where it's being used maliciously for deepfake, it's being used for generation of malicious images, video, in particular, fraudulent purposes where the videos actually are interactive, real time, where the threat actors are using it to fraudulently impersonate somebody.
We had an example of Hong Kong. There was a broking firm where there was over 200 million Hong Kong dollars paid out by someone who had a conversation, who genuinely thought he was talking to his boss.
INTERVIEWER: And how is Travelers supporting clients if and when cyber attacks do occur?
JAMES DOSWELL: So Travelers have a dedicated claims hotline specifically for cyber insurance. One of the key things with this is that time is of the essence. With ransomware events, they have a countdown ticking away in the background.
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Text: Visit travelers.co.uk/cyber or email [email protected]
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And it's so important that we can get one of our various panel members, one of the various companies that are specialists in their area, and it enables us to get the appropriate responder with the insured very, very quickly and able to actually start help mitigating that situation.
INTERVIEWER: You've already touched on how rapidly evolving the cyber landscape is. What are some of the main threats you foresee for 2025?
JAMES DOSWELL: So as I've already mentioned about AI has got significant threats from the deepfakes. But as well as that, one of the things that people don't necessarily realise is that it's able to very, very accurately mimic audio.
We've already seen our first claim from that where a person's voice was impersonated and it's actually been-- we've had insureds that have carried out their own independent testing on it. And it's proven 100% percent accuracy and 100% fail rate from people actually falling for it, where they genuinely think it's a person that they know they're speaking to.
And then on top of that, we've got zero day attacks where the attackers are actually using AI to help generate unknown or detect to go out and actually search for unknown unrecognised attack vectors to find vulnerabilities.
And then actually take those-- possibly it's even the scenario of day one attacks where they take a genuine security researcher who's gone out, they found a vulnerability in a piece of software or an architecture. They've published it as genuinely as part of their legitimate job, and that has then been picked up by the attacker.
And with the benefit of AI, they're actually adapting that and turning it into a genuine exploit that they're able to take away and use against many other companies very, very quickly.
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Text: Visit travelers.co.uk/cyber or email [email protected]
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In comparison, so for example, it used to take them maybe one or two weeks, now they're able to turn it around in hours.
INTERVIEWER: So how can you help clients get ahead of these emerging threats?
JAMES DOSWELL: So Travelers have extensive links into security services, and it enables us to get a lot of information very early on. We are able to give back to the insureds insights through risk conversations.
We're able to give potentially early warnings for some of the more severe vulnerabilities or exposures that they may have in their own architecture. We're able to actually advise on an early warning basis, even before it hits the main media perhaps that they may have a severe vulnerability in their architecture.
INTERVIEWER: And are there specific risk services that Travelers customers can access?
JAMES DOSWELL:
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Text: Visit travelers.co.uk/cyber or email [email protected]
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There are. We provide a comprehensive amount of information on our website to the various industries that we cover. We have the eRiskHub that people or the insureds can actually log into, and that provides a comprehensive suite of information.
I guess, in particular, there's areas for very specific industries. So for example, solicitors and law firms. And on top of that, we also provide free-risk consultancy service that I for example, would sit-in on client calls where I'm directly insured facing.
And we'd have a midterm conversation about their architecture, about what we can actually help them identify when they've got vulnerabilities there. They may you know some of the big companies I've spoken with multi-billion corporations.
And on the flip side, the smaller end as well, maybe 50 million turnover. It doesn't matter, the point is, sometimes as part of that risk conversation, it could be something that I'll talk about and it just crops up, oh, we haven't actually got that.
Or, sometimes it's feedback about the technology that they're using, alternatives, other ways of looking at things. So it's a fairly open conversation that I hold with the insureds. And it helps benefit both sides, because at the end of the day, we're providing information to the insured to better their environments and architecture, which helps provide us a better risk.
INTERVIEWER: And finally, how do you and your team keep ahead of this constantly evolving risk landscape?
JAMES DOSWELL: So as a global risk team, we have or Travelers has over 30,000 staff. So as a global risk team, we have integration and connections with various security services. It means that we get plenty of insights, advanced threat knowledge, and it really benefits that we can actually give those insights and pass information on to insureds.
INTERVIEWER: And tell us a little bit about those insureds, the small, the big, the critical as well.
JAMES DOSWELL: So looking at our client base, we look at everyone from SME through to global corporate, national critical infrastructure. And it's about improving their risk.
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Text: Visit travelers.co.uk/cyber or email [email protected]
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Those conversations that we hold really help to improve the company's exposure.
INTERVIEWER: We have to leave it there. James Doswell, Thank you.
JAMES DOSWELL: Thank you.
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Text: Information and opinions contained in this interview have been arrived at by Travelers, and any underlying research or analysis has been procured by Travelers for its own purposes. It does not, and it is not intended to, provide legal, technical, or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practises, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time, and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. All other registered trademarks are the property of their respective owners.
Travelers and InsureTV accept no liability for any loss arising from the use hereof nor make any representation as to their accuracy or completeness.
Travelers operates through several underwriting entities in the UK and Europe. Please consult your policy documentation or visit the websites below for full information.
Travelers.co.uk
Travelers.ie
- (0:15) Key trends and risks for the cyber market
- (1:40) How Travelers support clients when cyber attacks arise
- (2:25) Threats on the horizon for 2025
- (4:17) How Travelers prepare clients to mitigate emerging threats
- (5:05) Specific risk services available to Travelers customers
- (6:52) How the Travelers' Cyber team stay ahead of the constantly evolving threat landscape
It has never been more important for businesses to protect themselves against cyber threats. While the soft market for cyber insurance has continued to drive down rates, cyber risks have evolved rapidly. In our latest InsureTV interview, James Doswell, Senior Risk Management Consultant at Travelers Europe, provides an in-depth review of the current risk landscape.
Understand cyber threats
Cyber-crime continues to expand into new kinds of attacks. By the end of 2023, 39% of all Travelers cyber claims involved phishing in some way, Doswell said. Last year there was an uptick in ransomware, as well as in the use of AI to generate malicious images, audio and video. This included interactive videos that realistically impersonated people in real time for the purposes of extracting payments.
Protect your business from cyber-crime
The rapid spread of AI in recent years has added a new wrinkle to cyber security. AI is helping cyber threat actors conduct their activities faster and more efficiently. Beyond using AI to create deep-fake content, they are harnessing it to drive fraud, discover “zero-day” threats, and combine chains of lower-level threats. AI is also helping threat actors assemble their attacks at greater speed, giving attack targets a much smaller window during which to patch their vulnerabilities.
Cybersecurity practices protect company data
The cyber threat landscape calls for layered, multifaceted protections that help insureds discourage attackers – and recover quickly if they should be a target.
Risk management plays a critical role in this protection. Travelers has extensive links to security services and shares their insights with insureds to help them manage their vulnerabilities. By providing early warnings about potential threats, Travelers alerts insureds to weaknesses in their architecture that could expose them to cyber attacks.
Employee readiness against cyber attacks
Travelers offers a proactive, complementary post bind cyber risk consultancy service designed to help insureds review and mitigate their cyber risk exposures. During service calls with clients, who range from small- to- medium-size enterprises up to global corporations, vulnerabilities and potential threats are often identified which can lead to protective action.
This service complements the comprehensive suite of resources available on the Travelers eRiskHub to help insureds strengthen their day-to-day cyber protection.
Getting through a data breach
Even the best cyber protection isn’t bulletproof. The true value of a cyber insurance policy is in the expertise it offers during and after a cyber attack. Travelers provides real-time, ‘round-the-clock’ support to clients who have experienced such an incident. This guidance helps contain the threat quickly and enables the business to resume operations as promptly as possible.
Travelers has a range of specialist partners who provide rapid response, investigation and mitigation following an attack. If and when an insured experiences a breach, they can call the Travelers cyber claims hotline. From there, Travelers provides rapid incident response and assistance with getting back up and running, as well as help in dealing with the attackers when necessary.
Protect your business with Travelers
Businesses of all sizes and sectors are potential targets for cyber-crime. They need protection against the evolving tools that threat actors have at their disposal. The Travelers cyber team provides that protection. They are committed to continuously tracking cybersecurity trends, updating their knowledge and skills, and collaborating with industry experts to stay current. At the same time, Travelers is investing in advanced technology and tools for risk assessment and mitigation to help clients stay a step ahead of the cyber threats they face.
Contact the Travelers Cyber team to learn more.
This information is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information.
Travelers operates through several underwriting entities in the UK and Europe. Please consult your policy documentation or visit the websites below for full information.
travelers.co.uk travelers.ie
