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Cyber insurance. Is the industry writing more cheques than it can afford to underwrite? Premiums for cyber insurance aren’t high enough to adequately underwrite cover in the event of a sustained systemic cyber incident. The stats make for an interesting read as the insurance industry starts to understand the impact of cyber. Cyber losses are rising and premiums are not keeping pace. Each premium tier of the insurance ladder doesn’t require a significant number of large cyber incidents to wipe out premium income and profits, and the reinsurance market won’t have the capacity.
Cyber insurance is a market which requires more data, financial capacity (premiums) and as with other insurance products standards to set the bar for compliance. One simply has to look at the direction of travel for cyber regulation in the US. By way of example, the US Department of Defence released its Interim Final Ruling (29.09.2020) for CMMC and the use of NIST standards for cyber security, to be applied to its global Defence Industry Base (DIB).
Digital and cyber go hand in hand and in my view cyber insurance won’t have the capacity to absorb the losses. The industry needs to take a lead on compliance and standard setting.
#cyberinsurance #cybersecurity #nist #cio #nsa #cisa #cmmccoe #enisa
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