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One to watch. Warren Buffet and Ajit Jain at the Berkshire Hathaway 2024 Annual meeting. When they get asked a question about their view of cyber insurance, is it a potential for profit and what are they key challenges.
– Cyber insurance has become a fashionably, profitable product. Berkshire are careful when taking on cyber insurance liabilities however, as it’s difficult to know the quantum of loss. A single occurrence has the potential to aggregate losses, with no worst case cap.
– There’s not enough data to be able to identify the loss cost. Berkshire discourages their underwriters from writing cyber insurance business. Each time you write a policy expect to lose money.
– It might be a huge business, but it might create huge losses. But there’s not enough meaningful data today to underwrite policies.
– Cyber insurance agents get excited about cyber, but it maybe ‘rat poison’.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC Berkshire Hathaway
#cybersecurity #cyberriskmanagement #cyberinurance
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