Could cyber insurance act as an enabler to cyber risk management.

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Could cyber insurance act as an enabler to cyber risk management. Over the past 6 months a few articles have made the point that the cyber security industry is heading for what some call a market correction. Increased legislation, the need to close the cyber gap at the board table, the over exposure of the insurance industry on cyber. A crowded security solutions market.

There are no magic bullets to fix cyber security, it requires a holistic enterprise wide view of risk management, multiple layers of solutions, money, time and resources. With a backdrop of lack of skilled resources and no guarantee of 100% security.

There is a need for cyber insurance, one which both the policy holder and underwriter understands and can usefully cover the risk. I’m not convinced today that it can or should cover the whole risk, for many reasons. Namely it is to expense to cover a risk which is not understood and can vary wildly in exposure to both the client and insurance company and ultimately the re-insurance markets.

Could the insurance industry revert back to old fashioned principles of insurance, as this article alludes. A combination of regulation, improvements in security posture, local remediation and an ability to manage the risk in the event of an incident.

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