An article that explains well the pressures that cyber insurers are under.

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An article that explains well the pressures that cyber insurers are under. The drive is to grow premium income through broader coverage, while rates continue to fall. With a backdrop of increased ransomware attacks and, as of late, the use of AI to launch cyber attacks. It feels like cyber insurance is facing unsustainable headwinds.

We have said many times that cyber insurance is an unsustainable market for many reasons. The chief one being that cyber is treated as the predominant risk transfer tool by many organisations. There needs to be more alignment between cyber insurance and the management of cyber risk. An alignment that will take place as cyber regulation forces organisations to adopt cyber security risk management or face civil and criminal penalties, or in the case of the US DoD CMMC program, the loss of contracts.

Cyber insurers need to support their clients in adopting better risk management practices and support them ‘Shift Left of Bang’. Insurers need to offer better products and services to enable clients to proactively manage cyber risk, rather than enabling them to cover the inevitable losses of a cyber attack.

A reason why we have a range of board cyber programs, including Board Governance over cyber, governance of NIS 2, and Governance over DFARS/ CMMC.

@Thaddeus Dziekanowski Brian D. McCarthy

Veritas GRC

#cybersecurity #cyberriskmanagement

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