Insurers saw a rise in losses associated with direct stand alone cyber policies from 34% in 2018 to 47% in 2019, according to Fitch.

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Insurers saw a rise in losses associated with direct stand alone cyber policies from 34% in 2018 to 47% in 2019, according to Fitch. Are insurers getting worried that their payouts are increasing and 2020 will continue the trend.

In response to the increased threat, cyber insurers are starting to increase their oversight. Issuing questionnaires to better understanding their clients cyber risk. Questionnaires pose a number of problems;
1. Most companies do not understand cyber well enough to be able to articulate their cyber risk management capabilities.
2. Questionnaires are a notoriously bad method to get honesty.
3. At present there is no correlation between controls and the ability to prevent or manage a cyber attack. Hence insurance.

Many other insurance classes, car insurance for example are governed by regulations and laws. To provide assurance that we maintain our vehicles, have clean driving licences, pay road tax. There are no standards for cyber and getting tough requires standards.

The other observation for me is what happens if I am not particularly judicious with the truth – ‘Yes I do know where all my PII data is and it is secure’

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