Today's vehicles are connected to the Internet, so cyber hacking of vehicles is no longer science fiction. How should cyber risks be dealt with? what is their role של The state authorities and how will the insurance companies operate?
Today's vehicles are connected to the Internet, so cyber hacking of vehicles is no longer science fiction. How should cyber risks be dealt with? What is the role of the state authorities and how will the insurance companies operate?
As part of a special project on the subject, researchers raised various challenges related to cyber threats in smart private vehicles, which have a component that is connected to the Internet. The report focuses on examining the level of state involvement required regarding the level of cyber protection in vehicles and the prevention of cyber risks, and also deals with the issue of insurance for this type of vehicle. According to the summary report for the studies, a comprehensive approach should be considered, which includes a basket of potential state tools, including examining the need for mandatory regulation in certain contexts, according to the characteristics of the vehicle market in Israel and the degree of influence of the Israeli regulator in the various stages of the vehicle's life cycle.
The research project and the final report will be presented at the second smart transportation conference, which will take place at the Hebrew University on Wednesday, December 15, 2021, in which panels will be held and various studies on the subject will be presented. The project is based on research done by research colleagues at the Federman Center for Cyber Law and Policy Research at the Faculty of Law of the Hebrew University, Dr. Chaim Wismonsky and Gadi Perel. The concluding report for the project was written by the research associate at the center, Adv. Vared Zelicha. The association of insurance companies contributed to the financing of the project.
According to the summary report for the project, Cyber protection in a "smart car" may be considered an integral part of vehicle safety. In addition, among the project's recommendations, it was stated that Israel should act to influence global cyber protection standards, in various international forums, and adopt global standards that will take shape. The selection of the "toolkit" for the protection of the vehicle for use by the state should be done, among other things, in view of the vehicle's life cycle, for example upon its import to Israel, with the installation of "smart" components in the vehicle; as part of an annual competency test; After a cyber incident, etc.
In relation to insuring vehicles against these threats, the summary report claims that the amount of components connected to the Internet may vary from vehicle to vehicle, and the level of connectivity reflects the level of exposure of the vehicle to cyber risks. The possibility was raised that in the absence of an explicit exclusion for cyber incidents from the insurance policy, the vehicle insurances that already exist today may cover certain damages due to cyber incidents.
As part of the conclusions of the project, the author of the final report, Adv. Zelicha, who serves at the same time as a research fellow at the Federman Center as well as a partner and head of cyber and artificial intelligence at the law firm Lipa Meir & Co., stated that "It is possible to examine the possibility that as part of today's comprehensive insurance pricing, insurers will also consider cyber protection measures in a smart vehicle, depending on the specific level of exposure and the degree of internet connectivity of a vehicle (similar to the assessment of other security and safety measures). In this way, the insurers may act as a kind of "regulator" to raise the level of cyber protection in the smart vehicle, while providing an indirect incentive to the vehicle owners to equip themselves with cyber protection measures in order to reduce the pricing of the comprehensive policy. It seems that the trend to examine the level of cyber protection and to price cyber insurance accordingly is also currently reflected in the requirements of insurers in some of the cyber insurances for organizations."
Executive summary of the report on the website of the Association of Insurance Companies
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