Cyber is going through allot of change at the moment, and no publicly available measures paint a picture of it being a risk that the insurance

← Back to Blog

Cyber is going through allot of change at the moment, and no publicly available measures paint a picture of it being a risk that the insurance industry is going to manage any time soon. The UK FSA insurance industry stress tests of 2022 highlighted that the insurance industry needs to make improvements, including capital. (https://lnkd.in/eXQH9RjD)

Cyber regulation is on the increase and will shift cyber risk management ‘Left of Bang’, reducing the impact on insurers and creating a more predictable and stable risk to underwrite. This will take time and resources to implement, but will create a risk management program that the insurance industry can use to validate cybersecurity risk management compliance.

Anyone who has had to assess and manage cyber risk will tell you that cyber is to complex a risk to be predicted today. The 110 cyber practices and 300 assessment objectives that are required under DFARS 252.204-7012, 7019 and 7020 (NIST SP 800-171A) demonstrates why.

Investors in cyber insurance should be careful, at least until cyber regulation has landed and there is a noticeable change in the adoption of cyber risk management. The securities market for cyber has the potential to be significant, everyone will need cyber insurance. But it’s a high risk investment, as anyone watching the rise in successful ransomware in January will tell.

Thoughts?

Ted Dziekanowski

#cyberriskmanagement #cybersecurity #cyberregulation

View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7034068640916217856