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An important and poignant article from James Thaler. It’s positive to hear that the Cyber conversation is moving to one of being a legal issue, not a business decision. To wake up the cyber risk transfer market. As plaintiffs head to data breach class actions.
Corporate liabilities for cyber risk management are growing.
1. The liability for cyber risk management is shifting into the boardroom. Cyber risk management is a legal decision, not a business decision.
2. Ransom payments are now framed as evidence of culpability in court.
3. Significant questions about the origin of cyber attacks and insurance coverage.
4. The rate of cyber attacks continues to rise unabated. AI is eroding barriers to entry.
5. According to a recent NAIC report, only 1/3rd of claims payments are being made.
6. Settlements may no longer cover losses without legal action.
7. Cyber is a global problem, requiring global risk management solutions.
8. Loss ratios are under pressure as class action exposure pushes the claims process out.
The cyber insurance market is between a rock and a hard place. The reliance companies place on cyber insurance is rapidly looking misplaced. All drivers for cyber risk management point towards organisations having to manage cybersecurity risk ‘Left of Bang’. https://lnkd.in/eT3qqnYa
Although cyber insurers can fall back on the contract. The buck stops with the covered company to demonstrate adequate management of cybersecurity. A job that’s hard to do as cyber and data breach regulations increase in number and further exacerbate corporate liability. Liability that the insurance industry can use to challenge claims.
@Thaddeus Dziekanowski Brian D. McCarthy Adam Gladsden
@Parava Security Solutions
#cybersecurity #cyberinsurance
https://lnkd.in/e-6AMV3G
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