Cyber risk transfer is complex and cyber insurance is just one mechanism to transfer the risk.

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Cyber risk transfer is complex and cyber insurance is just one mechanism to transfer the risk. The cyber insurance industry faces many changes and opportunities if it is going to play its part in that transfer. Cyber threats are international, remote and local; they come from nation states and their proxies, from cyber criminals, hacktivists and script kiddies; the cyber maturity of many of their clients is low, 95% of the insurable are SMBs; many of the insurable rely on cyber insurance as a risk transfer tools, rather than use their balance sheets; cyber is a complex asymmetric risk to manage. Cyber has been an unregulated risk; finally cyber insurers underestimated the complexity of insuring the risk.

Cyber is manageable and can be insured, but it will take regulation, solutions to address small business cyber and for the insurance industry to adapt to support their clients with solutions other than insurance.

We wrote about cyber insurance in January 2022 offering a road map to insurability. https://lnkd.in/dGFVVjCi

Ted Dziekanowski Gerry Kennedy

#cyberinsurance #cybersecurity #cyberriskmanagement #theaugustagroup

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