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Ted Dziekanowski, cyber insurance sits ‘right of bang’ as a risk transfer tool, supporting organisations manage cyber post incident. It is interesting to see that some from the cyber insurance industry are making it clear that â¬ÅNeither insurance nor reinsurance alone can absorb the whole bunch of risks, especially talking about risks that may not be modelled, but also not be transferred. (sic)
Managing the cyber gap that is left between insurance and the total cost of an incident is a concern for organisations. For example it is important that Critical National Infrastructure (CNI) providers are able to cover all loses in the event of a cyber incident. Being able to cover the gap between cyber insurance and the total cost of a cyber incident has an effect on operations, sales, cash flow and possibly national security (see U.S ONCD strategy).
Cyber regulation shifts cyber risk management to the board and ‘Left of Bang’. Requiring boards to address cybersecurity risk management compliance at the risk of civil or criminal investigation and penalties, as the recent Uber CSO case and Wells Notice issued to SolarWinds executives demonstrate. Regulators are starting to get serious about cyber risk management.
One wonders the effect of cyber regulation on D&O insurance?
Stephen Pitt-Walker, JD, FGIA Rachel V. Rose, JD, MBA
#cyberinsurance #cyberriskmanagement #directorsandofficers
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