Friday, July 30, 2021

Cyber Risk Challenge

Terror.......often arises from a pervasive sense of disestablishment; that things are in the unmaking......(Stephen king, American writer, 1981)

Governments and Businesses are struggling to cope with the scale and complexity
of managing cyber risk. Over the last year, remote working, rapid digitalization and
the need for increased connectivity have emphasized the cyber security challenge. 

One tool that has gained traction is cyber insurance. If it can follow the path of
other insurance classes, it could play a significant role in managing digital risk.

However; across government and business they have consistently stated that the positive effects of 
cyber insurance on cyber security have yet to fully materialize. 

If the benefits are to be crystallized, the insurance industry must overcome significant challenges.

Some challenges include: 
  • The industry is struggling to collect and share reliable cyber risk data that can  inform underwriting and risk modelling. 
  • The insurers and reinsurers are unable to accurately assess organization's risk profile or price policy premium.
  •  The number of systemic incidents has limited the availability of capital for cyber insurance markets.

To overcome these challenges, a more coordinated action by government and regulators is necessary to help the industry reach its full potential.

Some coordination's include:
  •     Developing guidance for minimum security standards for underwriting
  •     Expanding data collection and data sharing
  •     Mandating cyber insurance for government suppliers
  •     Creating a new collaborative approach between insurers and law enforcement agencies 

Finally, It is important to note that a good cyber hygiene is still the responsibility of your organization, 
and the primary purpose of cyber insurance is to transfer residual risk

See You at The Top...