3 November 2022

5 important things to know about Marine Cyber Risks

While advances in information technology and interconnectivity has brought benefits to the safe and efficient operation of shipping they have also created higher risk associated with cyber systems

Hence risk management is fundamental to safe and secure shipping operations. Risk management has traditionally been focused on operations in the physical domain, but greater reliance on digitization, integration, automation and network-based systems has created an increasing need for cyber risk management in the shipping industry (www.imo.org; guidelines on maritime cyber risk management)

Pucrhasing an insurance can be an important risk management strategy to allow a vessel to recover from cyber incidents. A Marine Cyber Insurance can therefor help you manage your cyber risks on board your vessel. So, what do you need to know about Marine Cyber Insurance?

1) Damage to the vessel due to a Cyber incident is excluded from the Hull & Machinery and Loss of Hire coverage.

2) Marine Cyber Insurance is available in the market. It covers physical damage and/or loss of hire for a Marine Cyber Event

3) A Marine Cyber Event means failure of, damage to or destruction of any on-board Operational Technology Systems and/or any Information Technology System which impacts the on-board Operational Technology Systems ability to operate.

Vulnerable systems could include, but are not limited to: .

– Bridge systems;
– Cargo handling and management systems;
– Propulsion and machinery management and power control systems;
– Access control systems;
– Passenger servicing and management systems;
– Passenger facing public networks;
– Administrative and crew welfare systems; and
– Communication systems (www.imo.org; guidelines on maritime cyber risk management)

For example: Ransomware embedded within Automatic Voltage Regulator software could prevent generators from providing power. Maximum speed is reduced to a level that is insufficient for the tide resulting in the ship running aground.

4) Cyber insurance has a positive impact on improving the OT/IT safety of the vessels. The insurance company needs a cyber risk assessment and an onboard survey to assist the shipping company in risk understanding and mitigation. This preparation services reduce the risk of an incident occurring.

5) It is bit of a cliché, but a Marine Cyber Insurance gives you a peace of mind. It helps you to minimize financial losses caused by an event of which the financial consequences are still difficult to predict.