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1Q 2022

Cyber Insurance for the Energy Industry

Cyber Risk Calculation, Coverage, and Premium Trends for Global Refineries, Oil & Gas Pipelines, and Electric and Water Utilities

The energy industry as a whole is less resilient to prolonged business disruptions, as these assets and operations provide critical services and resources necessary for human life, health and safety, and economic activity. Simultaneously, there are numerous cyber vulnerabilities known and continually found in vendor products and devices used throughout the energy industry, including industrial and process control systems, industrial computers and engineering workstations, cellular gateways, routers, and access points. Threat actors are increasingly targeting these systems.

Insurance providers recognize the need for a better way to assess cyber risk, and energy providers are recognizing the need to demonstrate actions taken to understand and reduce cyber risk throughout their business and operations. Cyber insurance is difficult to obtain after experiencing a significant cyber incident, prompting a use it or lose it effect. In the energy industry, putting a number on the potential likelihood and impact for cyber incidents is difficult, with limited historical data and awareness of risks. Cyber insurance is constantly evolving in response to the threats and vulnerabilities in cyberspace.

This Guidehouse Insights report takes a deep dive into understanding cyber risk across the energy industry and the market drivers and barriers associated with cyber insurance policy underwriting and assessment. Premium amounts in the forecast data are determined by average premiums per segment per region, with penetration rates varying in each segment and region.

Pages 46
Tables | Charts | Figures 20
  • What is the state of cyber risks to the energy industry?
  • What gaps exist for underwriting cyber insurance policies across the energy industry?
  • What is prompting growth in the cyber insurance market for energy customers?
  • Which energy verticals are a growing customer base for cyber insurance?
  • What do boutique firms in cyber insurance offer as a key differentiator in the market?
  • ICS Vendors
  • Underwriters
  • OEMs
  • Cyber Risk Assessment and Cybersecurity Firms
  • Insurance Firms
  • Cyber Insurance Firms and Startups
  • Investor Community

1. Executive Summary

1.1      Cyber Insurance Trends

1.2      Energy Specifics

1.3      Global Outlook

2. Market Issues

2.1      State of Energy Cyber Risks

2.2      Understanding Cyber Risk

2.3      Calculating Cyber Risk

2.3.1     Security Controls and Requirements

2.4      Cyber Physical Risk

2.4.1     Stuxnet

2.4.2     TRITON or TRISIS

2.5      Reinsurance Priorities

2.6      Regulations and Frameworks

2.6.1     NERC CIP

2.6.2     NIST Cybersecurity Framework

2.6.3     International Electrotechnical Commission 62443

2.6.4     European Union Agency for Cybersecurity

2.6.5     International Organization for Standardization/IEC 27001

2.6.6     Center for Internet Security Critical Security Controls

2.7      Market Drivers

2.7.1     Ransomware and Rising Payouts

2.7.2     Silent Cyber

2.7.3     Supply and Demand

2.7.4     Interdependence and Critical Business Functions

2.7.5     Safety and Culture

2.8      Market Barriers

2.8.1     Lack of Data

2.8.2     Outdated Applications

2.8.3     Training and Awareness

2.8.4     Lack of Standardization

2.8.5     ROI for Security Tools

3. Technology Issues

3.1      Industrial Internet of Things and Distributed Energy Resources

3.2      Cloud Adoption

3.3      AI and Data Analytics

3.4      Automation in Security

4. Key Industry Players

4.1      AIG

4.2      At-Bay

4.3      Beazley

4.4      Chubb

4.5      Coalition

4.6      Corvus

4.7      Hiscox

4.8      HSB

4.9      Liberty Mutual

4.10      Resilience

4.11    Travelers

5. Market Forecasts

5.1      North America

5.2      Europe

5.3      Asia Pacific

5.4      Latin America

5.5      Middle East & Africa

6. Conclusions and Recommendations

6.1      Approach Cyber Coverage Holistically

6.2      Encourage Measurement and Baselining

6.3      Strengthen the Underwriting Process

6.4      Pursue Public-Private Partnerships

6.5      Build a Way to Compare Cybersecurity Tools

7. Acronym and Abbreviation List

8. Table of Contents

9. Table of Charts and Figures

10. Scope of Study, Sources and Methodology, Notes

  • Cyber Premium Revenue by Segment, World Markets: 2021-2030
  • Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Cyber Premium Revenue by Segment, North America: 2021-2030
  • Cyber Premium Revenue by Segment, Europe: 2021-2030
  • Cyber Premium Revenue by Segment, Asia Pacific: 2021-2030
  • Cyber Premium Revenue by Segment, Latin America: 2021-2030
  • Cyber Premium Revenue by Segment, Middle East & Africa: 2021-2030
  • Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Cyber Premium Revenue by Segment, World Markets: 2021-2030
  • Cyber Premium Revenue by Segment, North America: 2021-2030
  • Cyber Premium Revenue by Segment, Europe: 2021-2030
  • Cyber Premium Revenue by Segment, Asia Pacific: 2021-2030
  • Cyber Premium Revenue by Segment, Latin America: 2021-2030
  • Cyber Premium Revenue by Segment, Middle East & Africa: 2021-2030
  • Refineries Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Oil Pipelines Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Gas Pipelines Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Power Plants Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Electric Utilities Cyber Premium Revenue by Region, World Markets: 2021-2030
  • Water Utilities Cyber Premium Revenue by Region, World Markets: 2021-2030
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News Mention Feb 17, 2022
Utility Cybersecurity Insurance Premiums Are on the Rise, More Than Doubling for Some Independent Power Producers
By UtilityDive