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A nice article on the challenges facing organisations and cyber insurance.
I have to say I think the cyber insurance market is in turmoil. On one hand there are predictions that the market is going to be worth $Billions by 2025. On the other we see the challenges the industry is having to contend and the response that it is making to address them. With insurers increasing premiums, reducing coverage, refocus policy wording and in some instances walk away from the market. As the market hardens and cyber risk management regulations take affect organisations will not be able to rely solely on cyber insurance as a risk mitigant. Organisations are being directed by regulatory regimes and the insurance market to manage cyber risks, whether they like it or not.
Lets not forget that even with cyber insurance in place the total cost of a cyber attack is likely to be higher than that covered by a policy. Lets also not forget that the reinsurance market is having to contend with the risk aggregation associated with nation state cyber.
There are actions that this article discusses that can be taken to help reduce the gap between the inherent and residual risk. A gap that a cyber insurance policy should be designed to cover and one that organisations will be forced to address by the cyber regulations we see emanating from the U.S and E.U.
It’s worth noting that in the event of cyber regulatory compliance regimes it’s more than likely a cyber insurance policy could be challenged or void, if an organisation failed to comply with its regulatory and legal obligations.
Ted Dziekanowski
#cyberinsurance #cybersecurity #cyberriskmanagement #cyberregulation #theaugustagroup
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