Cyber Insurance Policies & Strategies

One More Coverage Gap for Buyers of Cyber Insurance to Worry About 

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Expenses caused by increasingly aggressive government regulators… “With regulators such as the FTC increasing cybersecurity enforcement, regulatory defense coverage is increasingly important. Enforcement actions can result from security failures to protect data (including employee information), improper data collection practices, failure to disclose a data breach or deceptive privacy practices. A comprehensive cyber policy covers attorneys’ … Read more

Beazley’s New $45m “Cyber Cat Bond” May Be Sign of Things to Come: Information Week 

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We told you about Beazley’s CAT bond and then its listing on the Bermuda exchange. This development in ILS is generating some optimism among those who fear devastating, system-wide damages from future cyber attacks. “’This innovative way of viewing, financing, and insuring against cybercrime may signal a systemic shift in how corporates and insurers assess … Read more

Must Read: Skeptical Analysis of a Potential Federal Cyber Insurance Backstop, From Lawfare

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Media discussion of a “cyber TRIP” tends to the bullish. This report, by post-doc cyber insurance researcher Daniel Woods @leltop, surfaces the potential downside of such a plan, from moral hazard to perverse incentives that might reduce improvements in cyber security by the insured. We don’t necessarily buy all the arguments here, but the detailed … Read more

Fed Backstop for Cyber Insurance Gains Steam: Politico 

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While not everybody is yet entirely convinced the feds should provide a backstop to cyber insurers for catastrophic system-wide attacks, Politico reports the discussion is moving forward. “But policymakers and executive branch officials have plenty left to iron out, said (RAND senior policy researcher Sasha) Romanosky (@SashaRomanosky), and they might opt for something far less … Read more

Cyber Attacks To Become “Uninsurable:” Zurich Insurance CEO

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Forget natural disasters, says the CEO. Cyber is the biggest threat, and public-private systems will be needed (note recent US movement in that direction.) “’What will become uninsurable (versus climate change or pandemics) is going to be cyber,” (Mario) Greco said. ‘What if someone takes control of vital parts of our infrastructure, the consequences of … Read more

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