Call us now:
A great article. Recent cyber events, globalization, JIT manufacturing, a lack of understanding of cyber risk management and the associated costs are pitting the cyber policy holder against the insurers. Did the insurance industry jump into something it didn’t understand or did the policy holder think that it was a cheaper way to transfer the risk? Whichever, cyber insurance is going through the judicial test, with both sides fighting their corners.
The global nature of a cyber-attack is causing a problem for the insurers, cyber cuts across geographic boundaries, along with global business systems. What starts say in London travels to Sydney in minutes. The costs are also eye watering (Merck ~ $700).
The lines are extremely grey, when is a cyber-attack geopolitical or not, terrorism or war? Add to this the lack of skilled resources, low levels of board engagement and understanding and the potential for cyber to grow as a geopolitical tool. There will be many debates of the coming months on the usefulness of cyber insurance. I personally believe in buyer beware and reading the small print. Cyber insurance has its uses, but it is very much dependent upon the size of your balance sheet, the maturity of your control environment and your ability to be able to go to court.
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6523841464470953985