About Us | Contact Us
View Cart

The Problem with Cybersecurity Insurance

By Vigilize | Monday, February 8, 2021 - Leave a Comment

The cybersecurity industry faces challenges, and some of them may involve your business…


An article review.


In a world where threats to your organization’s electronic assets are constantly emerging and evolving a cybersecurity insurance policy can help mitigate risk…but what kind of risk does the cybersecurity insurance industry face?  A new article in the Harvard Business Review takes a look at the issues facing this sector of the insurance industry, and some of the problems the author has uncovered may impact your own organization.

In order to evaluate risk and determine the most appropriate level of coverage, insurers in other sectors can look to the past–sometimes centuries of data are available, such as with weather events and other natural disasters.  But when it comes to cybersecurity, the industry only has a few decades of data to reference…and given how rapidly digital threats have evolved, just how relevant is the data from 2000?

The main issue resulting from this lack of experience relative to other insurers is two-fold: the insurers themselves may not have adequate resources to respond to multiple, high-profile payouts, and the insurers may have difficulty making recommendations to you about the correct amounts of coverage you should have.

While the author of the article does not suggest there’s a significant risk of cybersecurity insurers failing, he does believe that both the rates offered by insurers and the level of coverage they offer may be subject to change from year to year.  Accordingly, he believes that your organization should also be approaching the subject as an ongoing concern, as threats evolve your organization’s level of exposure can change, and so can the potential financial damages.


Original article by Tom Johansmeyer writing for the Harvard Business Review.


same_strip_012513


 

Latest News
    from Dan’s New Role . . . And note the date! Another one of those Dan’s New Leaf Posts, meant to inspire thought about IT Governance . . . . Once again, I am turning over a new leaf.  Those who have not been following this blog for its full fourteen-year history might not realize […]
    Top Seven Risks . . . that small bank Information Security Officers face in 2023! When we present audit reports to boards of directors, we also talk to the board about the top risks the institution is facing. Since 2006, we have been compiling a list of the “top seven risks small institutions are facing,” in […]
    Another awareness poster for YOUR customers (and users). Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape) You are welcome to print out and distribute this around your […]
    The new plan calls for technology providers, and not end users, to be responsible for security… An article review.  Following multiple high profile cybersecurity incidents in 2021 and 2022 the Biden Administration recently announced new long-term goals for the nation’s cybersecurity, and under the new plan companies that provide technology would carry more of the […]
    R7: 2023’s Top Seven Technology Risks Webinar-Video What are the top seven risks your board should know about in 2023? Since 2006, Dan has been compiling a list of the “top seven risks small institutions are facing,” in preparation for his board presentations. This webinar will present the 2023 list in a manner that you […]
    A new way of helping people “read” new guidance… Look for more in the future! To save you time, we are proud to present “Adam Reads” . . . recorded versions of our Guidance Summaries! Below you can find an embedded player for the audio file. If you are having issues with that working, you […]
    Times they are a-changin’ . . . The infotex website is being updated. You read that right! We are in the process of updating our website from the circa 2013 version we have had for far too long. As the Digital Media Manager for infotex this excites me greatly and I look forward to the […]
    A new Team member’s first article! In today’s news cycle, it is difficult to miss all the fuss about AI, or more specifically, ChatGPT. So many differing opinions on the matter can make it hard to decipher what the future looks like. Few people think AI is a gimmick, but not many know the possibilities […]
    A draft version of the new framework may be available as early as this summer… An article review. As the cybersecurity landscape is constantly evolving, the tools we use to address risk need to evolve as well–and by this summer we should be getting our first look at planned changes to the NIST cybersecurity framework.  […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape) You are welcome to print out and distribute this around your […]