Call us now:
We have spoken about cyber for many years as though it is a distant far off threat and risk category that is unlikely to affect us. Our messaging has not always been as clear as needed, when it has been, the requirements needed to manage cyber have often been seen as an expensive adding little corporate value. Cyber in the main not been treated as a national, economic of societal risk.
We are now suffering the consequences as our growth in public and private sector digital dependance has not been matched with the necessary growth in cybersecurity. As nation states see the cyber as a legitimate domain of operation and nation state cyber tools are weaponized for use against the public and private sector.
Is the insurance industry ready. One does not see a clear line between the predicted growth in cyber insurance over the next 5 years and the capital necessary to cover cyber risk. With all the conversations one has with boards, it is clear that there is a gap between board cyber knowledge and the reality of the effects of cyber on corporate financial statements. A gap that is being realized through the insurance coverage gap, between what insurance will pay and the fully loaded effect of a cyber attack on an organisation. A gap between what organizations need to do to address cyber risk management and cyber regulatory compliance. A gap in cyber resource needs, necessary to fill those gaps.
We can debate the real figures if we chose, but very simple math makes clear that the insurance industry is unprepared for cyber, let alone systemic cyber. For example who will pick up t
aggregated losses, when the reinsurance market is worth $310 billion (https://lnkd.in/dtZf-4Pw.) for all losses, that includes climate change, let alone cyber?
Is cyber regulation the answer?
Ted Dziekanowski Brian D. McCarthy Bob Dix Rachel V. Rose, JD, MBA
#cyberinsurance #cyberriskmanagement #cybersecurity
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