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If cyber insurers believe that cyber insurance will be vital in securing organisations, one suggest that there needs to be a rethink. It’s as vital as health insurance in ensuring that I am healthy. However health insurance doesn’t help me exercise, reduce my alcohol intake or stop smoking.There is no doubt that cyber insurance is important to covered companies, however as we have seen recently with Allianz, Swiss Re and Howden reports the cyber insurance market is getting complicated. As one insurer puts it, the industry maybe reaping the rewards of over-optimism. One keeps stating the obvious, cyber attack frequency, complexity and severity keep on going up, the coverage gap keep increasing, cyber is a national security threat and the public and private sector boards remain stubbornly oblivious to cybersecurity risk management. This week NCSC pointed towards a widening gap in the UKs ability to fight cyber threats and the UK under estimates the threat of hostile nation state threat actors. The U.S media reported that Chinese threat actors have infiltrated 8 telecoms carriers.So what is the Cyber Insurance industry to do? All indicators are moving against the industry, and moving quickly. But there is a light at the end of the tunnel. Some nation states have realized that market forces ain’t working to manage cyber, and cyber regulation is one of the few hammers left to force change. Cyber regulation forces cyber risk management into boards, with civil and criminal penalties. In some cases alleviating the reliance on cyber insurance and providing opportunities for cyber insurers, through risk transfer. As that’s what insurers do.So why not get in on the risk transfer act, work with clients and help them understand cyber risks, mitigate risks and provide insurance solutions to cover the gap? In the same way regulators require insurers manage capital through Solvency 2. Something insurers know allot about.@Thaddeus Dziekanowski Brian D. McCarthy Faisal KhanVeritas GRC Beazley#cybersecurity #cyberriskmanagement #cyberinsurance
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