“Increasing complexity within the cyber insurance market is raising questions over its viability as a business investment. Here are 7 reasons why an organization may be advised to avoid or delay investing in insurance,” reports the publication.
One of the reasons: Major cyber events are rare. “While these indirect costs (such as fines and payments to customers) can have a massive impact on a firm’s liquidity should they not be covered by cyber insurance, given the low likelihood of manifesting, they will likely be considered wildcard events that do not necessarily justify high premiums,” says an expert quoted in the article.
This skepticism appears mostly due to major premium increases over the past several years. But mark us as dubious about a strategy of 100% self insurance against cyber attacks.
Increasing complexity within the cyber insurance market is raising questions over its viability as a business investment. Here are 7 reasons why an organization may be advised to avoid or delay investing in insurance.
Source: 7 reasons to avoid investing in cyber insurance