Call us now:
This report on the status of the cyber insurance market from a credit rating agency is well worth reading
‘Grim’ is not a particularly positive word to use when describing anything. Even less so when it come from a credit rating agency in describing the state of a market sector. In this case the cyber insurance market. Much has ben written recently about cyber insurance over the past 12 months, its growth, written premiums, underwriting issues, lack of knowledge and date to assess the.
According to the global rating agencys analysts, insurers ¢â‚¬Å“urgently need to reassess all aspects of their cyber risk, including their appetite, risk controls, modelling, stress testing and pricing, to remain a viable long-term partner dealing with cyber risk.¢â‚¬Â
With ¢â‚¬Å“Ransomware and Aggregation Issues Call for New Approaches to Cyber Risk.¢â‚¬Â
Seller beware, the market is unpredictable and those who venture into it should be aware of the risks that they take on. The industry needs to provide clear direction, guidance and support. The Us government is moving quickly to regulate cybersecurity, develop and introduce clear standards for risk assurance and oversight.
Risk management is a simple equation. It is a balance between inherent risk and control, to manage residual risk. The problem for insurers is they have no mechanisms to manage or assess controls. These belong to their clients. So the residual risk will always be close to the inherent risk. Which is always rising as cyber attacks increase in number, complexity and impact. Cyber insurance policies must adopt controls similar to other insurance policies. I cannot get car insurance in the UK without a valid MOT certificate. Yet a large corporate can get cyber insurance by filling in little more than a questionnaire on controls assurance.
The SEC will add cyber risk governance to ESG reporting, requiring the material assessment and reporting of cyber risk. Could the insurance industry request companies of a certain size provide a SoC 2 report completed by CPA or equivalent, prior to underwriting?
Ted Dziekanowski‚Â Brian McCarthy‚Â Jason Spezzano
#cybersecurity‚Â #SupplyChainRiskManagement‚Â #CyberRiskManagement‚Â #riskmanagement‚Â #compliance‚Â #cyberinsurance‚Â #insurance‚Â #regulatorycompliance‚Â #regulatoryoversight‚Â #esgrisk‚Â #cyberregulation‚Â #esgreporting #soc2
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6813369326263906304