On modern threats to environmental sustainability in the Arctic: the cybersecurity factor and the provisions of insurance against environmental and cyber risks in oil and gas installations

Abstract

Due to unprecedented fires and rise in temperature climate change is occurring rapidly, melting the Arctic ice and uncovering new areas for expropriation of natural resources. Such expropriation needs to occur in a sustainable way, respecting the environment and the indigenous people. To achieve this, all inherent risks arising from any environmental threat (oil spill/ any type of environmental accident, cyber risks of any nature) to oil and gas installations need be identified and environmental liability and cyber-risks insurance coverage need be in place. This paper discusses the way for such insurance coverage to be placed and worded. It argues that the traditional (marine and other) property insurance policies coverage and wording is inefficient, as it ends up being fragmented due to the numerous policy exclusions and limitations; it also puts forward an argument for the need to have specific wording and cover for specialized risks, in relation to the operation of oil and gas installations in the Arctic and cyber-risk threats, taking into account potential environmental impacts and hazards. This paper also argues that for the time being, as businesses become increasingly reliant on technology, it is imperative that additional cyberrelated risks are identified and minimized or transferred externally. Finally, it offers some suggestions about cybersecurity policies covering specialized risks.