The cyber insurance gap is increasing, and will continue to increase as cyber attack frequency complexity and severity of impact increase, cyber

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The cyber insurance gap is increasing, and will continue to increase as cyber attack frequency complexity and severity of impact increase, cyber maturity remains low, and cyber remains a risk that boards find difficult to understand and manage. As cyber regulation develops across the U.S and EU covered organizations are required to address cyber maturity as cyber risk management is moved ‘Left of Bang’, away from a reliance on cyber insurance to one of regulatory compliance.

Cyber regulation is reported to have an impact on both cyber and D&O insurance, further increasing the effect of the cyber coverage gap on covered entities and boards. It also provides insurers with the opportunity to collect appropriate information to support cyber underwriting, evaluate cyber risk management and the claims management process.

The coverage gap will continue to widen until board undertake the necessary ,and for some, regulated requirements to govern, oversight and assure cyber risks. One wonders if cyber regulation will be the catalyst to force boards close the gap through the management of cyber maturity, as is likely insurance will not cover failure of regulatory compliance?

Ted Dziekanowski Rachel V. Rose, JD, MBA Bob Dix Brian D. McCarthy

#cybersecurity #cyberriskmanagement #cyberregulation #cyberinsurance

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