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Kevin Smith, senior vice president, management, cyber and professional liability at NFP, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Fla.

Reflecting on the past few years, Smith highlighted the transition from a hard market to a more favorable buying environment for cyber liability insurance.

“With the rates increasing [and] cyber hygiene getting better amongst our clients, you had a lot of additional capital come into the marketplace,” he said.

Regarding emerging trends in cyber risk insurance within the real estate space, Smith emphasized the rising threats of ransomware and business email compromise, or BEC.

“What we’re seeing in the REIT space specifically is the impact once your systems are down,” Smith said. “What is the economical and business income impact of shutting down those technology systems?”

Smith also underscored the growing dependence of the real estate industry on technology, urging CFOs and risk managers to consider the operational risks associated with potential disruptions to technology and software systems.