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One is not sure how this will end well Gerry Kennedy. The recent Crowdstrike incident raises many questions about the role that insurance effectively plays in supporting client manage risk.
With the national Cyber Director Harry Coker confirming the need to work with actuaries to substantiate the data needed to underwrite cyber insurance. “We’re working through one of the challenges, which is around the actuaries. Do we have sufficient data to make the cyber insurance market more mature? That’s an area that we’re focused on,â€
Cyber insurance and as important insurance to manage ICT risk, lack any meaningful level of data to accurately underwrite the risks. The Right of Bang focus of insurers and the insured has led us to a point where insurance in being managed through caps and exclusion clauses. Where the coverage gap is simply getting bigger, as the insured is unable to effectively manage the risk.
At the same time cyber regulation is requiring a ‘Left of Bang’ approach to proactive cyber risk management, at risk of corporate civil and criminal penalties. The Crowdstrike incident also throws a spanner in the insurance works, as it highlights the issues related to the ICT risks associated with single points of failure that involve third party suppliers and subsequent consequential losses.
Organisations and governments have to focus on Left of Bang risk management if there is going to be meaningful management of cyber and ICT risk.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC
#cybersecurity #cyberriskmanagement #cyberinsurance #risktransfer
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