Unique Cyber Risks and Coverage Challenges from the Industrial Internet of Things

As industrial control systems that manage equipment and processes in manufacturing, utilities, transportation, energy and hospitals become increasingly Internet-connected, the risk of cyber incidents to critical infrastructure is becoming profound.  Estimates are that by 2020 the "industrial internet of things" (IIOT) may include over 11 billion industrial control components installed in the field that are increasingly connected to networks.  These are components that measure and control mixtures, heat, and levels, open and shut valves and circuits, and sense production problems.  Should these addressable components be successfully hacked or otherwise disabled, potential impacts include black-outs, production disruptions and process safety risk, threats to widespread public safety, and environmental consequences that were once thought of as "black swans."  This session will examine how real these risks are, how companies are beginning to address industrial control systems cyber risk, and the challenges to the insurance sector to develop products that cover and price this risk effectively.