The Source for Cyber Insurance News, Insights and Data
Mark Sauter “Cyber insurance premiums amount to just a fraction of total losses from cyber attacks, with estimates putting the protection gap at 90%. There is much work to do to ensure sufficient risk protection is available to make society more resilient to cyber risk, and this effort will require collaboration between businesses, the insurance industry and … Read more
The growing legal and technical complexities of cyber insurance policies might be addressed by a simpler process. “’In this respect, we see an interesting trend that we definitely follow and promote, [and that is] a parametric approach. Since many of the cyber events are really black and white, I think a clear claim settlement process … Read more
Josephine Wolff offers the critique in her well-researched book, Cyberinsurance Policy: Rethinking Risk in an Age of Ransomware, Computer Fraud, Data Breaches, and Cyberattacks (MIT Press, 2022). Are insurers and insurtech companies placing too much emphasis on narrowly-defined cyber coverage, security controls and hacking data and not enough on holistic underwriting? “In trying to treat … Read more
Insurers have tried to avoid paying claims related to Russia’s NotPetya cyber attacks on Ukrainian targets. “Now, however, it’s increasingly clear insurers aren’t off the hook for NotPetya payouts or from covering losses from other attacks with clear links to nation-state hackers…” “’We’re going to need to rethink what act of war means in cyberspace … Read more
This report, written by the team @TheGrahamCo, casts doubt on using a “new captive” for cyber risk, as captives are commonly used for “high-frequency, low-severity” claims, while cyber attacks are often low-frequency and high-severity. Captives make more sense if they’re “mature” and have enough surplus capital to cover substantial losses. “If your organization has a … Read more