Rapid Increase in Vehicle Technology Raises Vehicle Cyber Risks

Blue lit up circuit board with chip showing car with wifi signal icon

April 26, 2022 |

Blue lit up circuit board with chip showing car with wifi signal icon

The rapid increase in vehicle automation along with a growing reliance on internet-connected technologies in critical operations are increasing cyber risks associated with vehicles, according to a recent briefing from Guy Carpenter.

While the overwhelming majority of cyber incidents thus far have centered on information technology, we're nearing an "inflection point" where the use of digital systems to control physical processes will bring the cyber threats facing information technology and operational technology closer together, Guy Carpenter said in the briefing "Cyber Risk for Vehicles."

The report suggests that as vehicles evolve, there are three different categories of "intelligent" vehicles.

  • · Connected vehicles use technology to communicate with each other; connect with traffic signals, signs, and other road items; or obtain data from the cloud.
  • · Automated vehicles use technology to steer, accelerate, and brake with little or no input from human drivers.
  • · Autonomous/self-driving vehicles have even greater independence from human intervention than automated vehicles.

The new technology creates emerging cyber risks for those using the roads, Guy Carpenter said. Those risks fall into three categories: privacy with the risk of third parties getting access to personal data, security with the risk of attackers taking control of vehicles in motion, and safety around the risk of technological failures such as in the algorithms governing the application of brakes.

Guy Carpenter suggests the emerging cyber-vehicle risks will potentially be felt across several insurance coverage lines, including cyber, automobile, product liability, and general liability, in terms of both frequency and severity. Among the likely responses will be the need to distinguish between motor third-party liability versus product liability with an accompanying move from third-party liability for physical damage and bodily injury to first-party insurance with the increase of technology in vehicles, the intermediary said.

April 26, 2022