“Cyber insurance will undergo an identity crisis,” says the Financial Services Information Sharing and Analysis Center (FS-ISAC), the cyber intelligence-sharing community for financial services.
“(S)ome financial sector firms are beginning to reconsider cyber insurance. In some cases, premiums rise so high that firms are considering ring-fencing
capital equivalent to the estimated premiums as an alternative to purchasing insurance coverage altogether. Although unclear in what direction the field of cyber insurance will evolve as it matures, drastic changes seem likely. As cyber regulation increases, regulators may contemplate alternatives to cyber insurance for individual firms to ensure the continued security of the financial sector and other elements of critical infrastructure.”
The report notes that some carriers now require policy holders to keep “specialist ransom negotiators on retainer.”
FS-ISAC releases its annual report on cyber threats in 2022 and predictions for 2023 and beyond.
Source: Navigating Cyber 2023