A simulation exercise conducted by CyberAcuView and industry experts highlighted the vulnerabilities of the insurance sector in responding to large-scale cyberattacks.

The scenario, based on the potential threat of a cyberattack similar to Volt Typhoon, revealed that even a moderate-scale attack could overwhelm current insurance capabilities.Participants grappled with ethical dilemmas, such as prioritizing human lives versus economic losses or military infrastructure.

The exercise underscored the need for proactive measures, including better cybersecurity practices by clients and potential government intervention through mechanisms like the Terrorism Risk Insurance Act (TRIA).

Experts argue that the insurance industry must shift focus from reactive responses to preventive strategies, such as mandating network security upgrades and participation in information-sharing groups.

The simulation emphasized that without such changes, catastrophic cyberattacks could become 'uninsurable,' risking both financial stability and public trust in the insurance system.The event concluded that the primary lesson is not about winning the simulation but about rethinking systemic preparedness for cyber threats.