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One would argue that cyber insurers are ‘dead in the water now’. There is only one way in which cyber insurers can underwrite cybersecurity and that’s with access to data, and its not historic claims a data. There have been many articles written about the challenges cyber insurers face with underwriting cyber. Resulting in unsustainable loss ratios, increased premiums, reduced coverage and exclusion clauses.
U.S and EU cyber regulators have demonstrated that the tool of choice for managing cyber will be regulation. Cyber regulation as with exclusion clauses is a blunt tool, but regulation is now here. But for those of us who have been involved in cyber and risk management, data is the only way cyber can be managed and if you can’t measure it you can’t manage it. In a twist of irony its data that regulators want from organizations to demonstrate compliance.
Cyber insurers will understand the impact of cyber regulation, as it applies to them under EU DORA, Solvency II and those listed insurers the SEC proposal. One only has to look at the Annual SEC FISMA audit or NIST SP 800-171 to grasp the amount of data required to demonstrate regulatory compliance. But its data collected for a reason, it’s to demonstrate the effectiveness of cyber controls and management of residual risk.
The opportunity for cyber insurers is data is readily available from their clients. They just need to know how to get it, evaluate it and use it appropriately.
Ted Dziekanowski Stephen Pitt-Walker, JD, FGIA
#cybersecurity #cyberriskmanagement #cyberregulation #cyberlaw #goverance
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