As you may know, I do love a good predictions piece about what to expect in the coming year and this one is definitely an interesting read from the team at Clyde&Co.
Ultimately cyber risk is a growing concern for many organisations and they often turn to insurance to help manage or offset the cost of that risk. This inevitably leads to disputes, not just around the insurance coverage itself where the matter can turn on arguable terms, such as best practice and industry standards, as well as how the organisation reacted, but also disputes with both regulators. For instance, the ICO, and people who have suffered from associated data loss or privacy breaches in group actions.
As well as an appropriately skilled and experienced legal team, it is ever so important to ensure you have the right combination of experts in place. This might include: cyber, data privacy, economists, accountants, and forensic technology experts.
As every case is different and with various nuances, it is important to engage with the experts early on so that the right team can be assembled and deployed carefully. For more on this drop me a message.
A surge of low value compensation claims from hundreds of thousands or even millions of individuals could cripple an organisation. The cost and burden of dealing with such a scenario represents a significant, and long-tail, risk to organisations’ financial viability and their reputation. With this threat on the horizon, data breach based group claims (and potentially class actions) are a risk that should be high on the risk radar next year.