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So now some cyber risks are uninsurable?
There is and there never has been a ‘quick fix’ for cyber. Unfortunately we are having to face facts that cyber is a risk that requires more than just cyber insurance as the risk transfer tool. So when the insurance industry starts to voice that cyber threats are ‘outpacing the ability of traditional insurance and risk management approaches to mitigate them’, one should be concerned.
One believes there is no single solution for the management of cyber risk. Least of all relying on a backstop that would be highly damaging to companies and society at large. Even if there were a ‘pot of gold’ to compensate society for a cyber breach, any breach that was that big would take weeks, if not months to fix. If payments went down what would be the effect on society?
There are approaches that the insurance industry and governments can adopt. As is demonstrated by the U.S and EU who are moving to regulated cyber risk, transferring risk back into board rooms of covered entities. Cyber risk has to move fully ‘Left of Bang’ rather than being an insurable right of bang solution.
Unless the public and private sectors address cybersecurity risk management it will never be managed and ‘Pots of Gold’ won’t solve the problem. Cyber is a weapon, and we are fighting a war. Once the enemy is behind the gates the damage is done. So simply try and stop them getting in, in the first place. Cyber professionals are well aware it costs more to fix cyber right of bang, than left. This is something the insurance industry should be driving as leaders in risk management, after all that’s what regulators are already doing.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC Zurich Insurance Marsh McLennan
#cybersecurity #cyberriskmanagement #cyberinsurance
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