An article from the insurance industry on the insurability of cyber risk, more importantly, its un-insurability.

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An article from the insurance industry on the insurability of cyber risk, more importantly, its un-insurability. Cyber insurance is an important component of corporate risk transfer. Waiting for a catastrophic loss is likely not the right approach to take; recent cyber attacks have demonstrated the impact of cyber on national and economic security.

The cyber insurance industry is too focused on incident response, while regulators are shifting cyber risk left of bang, forcing boards to make trade-offs between spending on cyber regulatory compliance, incident management, and insurance. With the cyber threat running out of control, the insurance coverage gap increasing, and cyber regulation on the rise, something has to give. Boards have to make trade-offs.

The insurance industry should be focused on the risk management lifecycle, supporting boards in managing cyber risk and regulatory compliance left of bang, while covering residual risk through insurance, right of bang.

@Thaddeus Dziekanowski Brian D. McCarthy Dr Florian Meier Sarah Thompson

https://lnkd.in/efH7CqFE

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Cyber Insurance, Cyber Risk Management, Regulation & Compliance

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