Santiago, Chile, November 5, 2024 — The CEO of Marsh Chile, José Ignacio Lathrop, anticipates an intense week of activities within the framework of the “Marsh McLennan Insurance Week“, which is taking place starting November 4. This event, which has the participation of more than 200 insurance and risk executives from all over Latin America, will focus on topics of high relevance to the insurance industry and risk management.

One of the main scheduled meetings will be the seminar “From uncertainty to opportunity: global risks and economic perspectives“, which will be held on Wednesday, November 6, from 8:00 a.m. to 2:00 p.m. in the Transoceánica Building, Av. Sta. María 5888, Vitacura, in which prominent personalities such as the former Minister of Finance and current director of the IMF for the Western Hemisphere, Rodrigo Valdés, the vice president of the CPC, Susana Jiménez, and the economist Óscar Landerretche, will analyze current and future trends in risks facing the corporate sector. For information you can access the following email.

During the event, José Ignacio Lathrop highlighted the growing relevance of cyber risk in the business context.

“Today, cyber risk is as critical as an earthquake; “It can completely paralyze a company,” the executive emphasized.

By 2024, cyber insurance policies have seen a 40% increase, reflecting growing business demand for this type of coverage. This growth responds to the need to protect against increasingly complex and sophisticated risks.

In addition, Lathrop highlighted the rise of directors and officers (D&O) insurance, with an increase of 25% in 2024. This trend responds to the increase in litigation in Chile, especially in a context where economic liability regulations are are tightening, generating significant exposure for executives.

Regarding innovations in the industry, Lathrop explained how parametric insurance works, an advanced solution that is activated by specific catastrophic events. This modality allows companies to obtain coverage based on predetermined conditions, as occurs in tourist areas that depend on insurance against climatic phenomena.

According to Lathrop, “parametric insurance is a valuable tool for mitigating economic losses, even when direct physical damage is minimal.”

With this event, Marsh reaffirms its commitment to leading the development of advanced insurance solutions, helping companies face uncertainty and transform challenges into opportunities for growth and protection.

Chilean context

In a recent interview with Edson Villar, leader of Cyber ​​Risk Consulting for Latin America at Marsh, he revealed that cybercrime has become an industry that seriously affects Chile, especially the technology, finance and manufacturing sectors. Villar explained that Chile is one of the five most attacked countries in Latin America, along with Brazil, Mexico, Argentina and Colombia. Ransomware attacks, which lock down systems and steal sensitive information, occur more frequently than you think and are often not detected immediately.

Cybercriminals employ effective extortion strategies, threatening to release stolen information to pressure companies. This creates not only a financial impact, but also a reputational risk that can be devastating. The amount of ransoms varies depending on the size and income of the companies, and criminals pre-screen their victims to determine how much they could pay.

While there is cyber risk insurance that covers some aspects of these attacks, Villar warned about the ethical implications of paying ransoms, as it encourages more attacks and makes companies recurring targets. However, it is estimated that between 45% and 50% of companies end up paying.