This article is part of the
Global Risk Dialogue - 01/2023
According to the dataset, natural catastrophes remain a major concern for Technology, Media and Telecommunications (TMT) companies, even if their main assets are in the cloud. They may not store large amounts of goods or inventory, but they have physical servers and office buildings. Many are located in coastal cities or campuses so if they are hit by a hurricane, tornado or an earthquake, both material property damage and additional business interruption losses from flooding can be significant as insurers have seen from claims experience in recent years.
Willful acts/crime is the third top cause of loss according to value, as well as being the most frequent cause of claims in the analyzed dataset, accounting for around one in five claims by number. As a loss category it covers a variety of different causes, ranging from the theft of high-value telecommunications equipment while in transit to cyber incidents such as hacking.
Recent years have also seen TMT companies file claims for damages to property and infrastructure, including fires resulting from riot, looting and civil commotion activity in the wake of protests such as those surrounding the murder of George Floyd by the police in the US in 2020.