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Well worth watching the Sub Committee hearing on Homeland Security discussing the effects of cybersecurity on Critical Infrastructure Resilience. Presentations by members of the insurance industry makes for interesting listening from 23 minutes. Cybersecurity continues to be a significant risk to industry as an economic and nation security.
At 32 minutes cyber insurers
1. Provide an annual evaluation of organisations cybersecurity by an objective 3rd party through the underwriting process.
2. Cyber insurers use risk engineering to monitor the level of cyber hygiene by their insurers
3. Cyber insurers provides incident response planning services.
4. Cyber insurance helps organisation manage capital through the transfer of financial risk. 47% Marsh clients with revenues greater that $1bn purchase cyber insurance. 80% of SMEs lack cyber insurance, and cannot afford to implement baseline cybersecurity controls (54:30)
5. 1:06:50. Cyber is still an emerging line of coverage. Carriers are still trying to finding out how they will cover cyber risk.
6. 1:10: 30 The Insurance Backstop is not about protecting cyber insurers, its about protecting national security from a catastrophic cyber attack.
The insurance industry cannot accept the magnitude of losses. The insurance industry, at present, is unable to quantity the effect of a global catastrophic cyber event and the coverage afforded by cyber insurers. A protection gap as high as $900bn. The government could become the reinsurer of last resort.
As you go through the presentation, one finds it difficult to see any solutions to address cyber cybersecuirty problem. the conversation was very much focused around the requirements for cyber insurance, with 4 out of 5 organisations having no cyber insurance. There was little or no conversation of how the cyber security problem will be addressed. We are still focused Right of Bang finding it difficult to move Left.
@Thaddeus Dziekanowski, we have written many strategies for addressing cybersecurity, presenting to ONCD, Cyberspace Solarium Commission and the DoD (www.augustagrp.com). Cyber insurance is not the answer, there is not enough capacity, it provides no defensive strategy for economic or national security.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC House Committee on Homeland Security
#cybersecurity #cyberriskmanagement #cyberregulation #cyberinsurance
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