Marine sector cyber exposures escalating
Technology drives multiple operations in the maritime sector, from navigation and cargo tracking to docking and propulsion. The benefits are clear, but those same systems and equipment have also become one of the ocean industries’ biggest vulnerabilities.
The ability to manage and contain cyber incidents has become imperative for any organisation. Whether caused by a cyber-criminal’s malicious act or a simple mistake by a crew member or a shore-side employee, the potential financial, legal, and reputational consequences – not to mention service disruptions and even physical harm – can be devastating. Specific exposures demand specific responses.
It’s easy to believe ‘it won’t happen to me’, but ever-evolving technology creates more systems and access points, and therefore more vulnerabilities. Ultimately, if it’s part of a network, it’s vulnerable. Complex systems such as nautical chart correction and fuel management programs can be altered to disrupt vessels, but even apps as simple as an email inbox or weather information software can be manipulated, intentionally or by accident, so that they interfere with business operations.
Docking systems
At major international ports have been crippled by hacks, impacting global supply chains across multiple industries.
Oil platforms’ operational systems
Have been accessed remotely by hackers who shifted the vessels’ positions, causing business disruptions or even shutdowns.
Shipping company servers
Software vulnerabilities have left shipping company servers exposed, resulting in unauthorised access, data loss, and business interruption.
Hijacking at sea
Somali pirates have hired hackers to assist in hijackings at sea, facilitating hostile boardings that create multiple costly events.
All of these real-life examples of cyber risk have the potential to be disastrous. Fortunately, they can be insured to minimise the financial damage that results, and even to help with the management of incidents as they occur.
Marine underwriters benefit from their wide portfolio of risks and broad loss data. That intelligence has made them nervous about cyber exposures, particularly arising from ransomware incidents, as losses increase steadily. Marine property insurers have responded with cyber exclusions that hand cyber risk back to insureds.
We at Miller can solve this new issue with specialist marine cyber risk coverage. A standalone cyber insurance policy tailored to the needs of the maritime industry is the first line of defence against cyberattacks. It is essential now that cyber risk has been excluded from other marine coverages.
Policies are designed to get businesses back up and running faster by providing risk management before attacks occur, and forensic investigations and system remediation services when attacks succeed. They can cover financial losses due to business interruption (like loss of hire, but with a waiting period of only hours), ransoms when it’s deemed best by experts to pay them, and even the costs of PR to protect the victim’s commercial reputation (and, potentially, the lost income when a contract falls through as a result of depleted confidence). It’s now possible even to acquire coverage for physical damage to property caused by a cyber incident.
The range of coverage available is enormous. Miller will sift the market to find or create exactly the right cyber insurance to fit the exposures of any marine operator, onshore or off. As one of the London market’s leading marine brokers, our highly developed maritime knowledge and reputation for innovation have been built over more than a century. We bring all that expertise alongside the technical knowledge of the cyber team to create ideal solutions for ship owners, charterers, ports and logistics operators, energy companies, forwarders, and an array of others in the marine sector.