Cyber crime eclipses all other global risks, according to the President of the US-based Risk and Insurance Management Society (RIMS).

Rick Roberts told insuranceNEWS.com.au criminals are still one step ahead – but insurers are rising to the challenge.

“The key issue is still cyber crime,” he said. “Coverage seems to be getting more solid, and the upfront loss-control services that come with the purchase of insurance are really valuable.”

Mr Roberts warned companies to focus on employee exposure, because “internal issues are more prevalent than hacks”.

He says cyber coverage is a must for most businesses, although it is not yet appropriate for everyone and long negotiations are required to obtain the right fit.

“It’s still a new product. In another 5-7 years it’ll be more off-the-shelf, but it’s very difficult for underwriters to work through at the moment.

“Cyber is clearly a board-of-directors issue for every company.”

Mr Roberts believes cyber risk can be handled by the insurance industry at present, without the need for government intervention.

“It seems there is enough capacity in the market for any breach that has occurred so far, although we may not have seen the cyber equivalent of 9/11, and at that point governments might have to step in,” he told insuranceNEWS.com.au.

Mr Roberts was in Melbourne earlier this month for RIMS’ Risk Forum Australasia.

The Australasian chapter – which is in its third year – is one of the fastest-growing branches, with about 75 members.

“It’s in the top five for growth and we’re very excited about that,” Mr Roberts said. “The forum was a great success.”