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Bad decisions have consequences: how cyber security could fall victim to climate change

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  • Johansmeyer, Tom

Abstract

The systemic nature of climate risk is well established, but the extent may be more severe than previously understood, particularly with regard to cyber risk and economic security. Cyber security relies on the availability of insurance capital to mitigate economic security sector risks and support the reversibility of attacks. However, the cyber insurance industry is still in its infancy. Pressure on insurance capital from increasing natural disaster activity could consume the resources necessary for economic security in the cyber domain in the near term and create long-term conditions that increase the scarcity of capital to support cyber security risks. This article makes an original contribution by exploring the under-researched connection between the nexus of cyber and economic security and the climate change threat. Although the immediate pressure on economic resources for cyber security is limited, recent natural disaster activity has clearly shown that access to capital for cyber risks could come under significant pressure in the future.

Suggested Citation

  • Johansmeyer, Tom, 2025. "Bad decisions have consequences: how cyber security could fall victim to climate change," British Actuarial Journal, Cambridge University Press, vol. 30, pages 1-1, January.
  • Handle: RePEc:cup:bracjl:v:30:y:2025:i::p:-_15
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