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
    What are the top seven risks your board should know about in 2021? Since his first board presentation in 2000, when Dan presents audit reports to boards of directors, he also talks to the board about the top risks the institution is facing. Since 2006, Dan has been compiling a list of the “top seven […]
     A Timeline Update as of 02/22/21 An update to our Newest Employee’s FIRST Technical Article Another interim post-mortem review . . . . A Note About Updates: We have decided to leave the original article as it was originally posted and to update this post with any changes that have been made. You can see […]
    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! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around your office.  
    A Webinar-Movie The 2020 annual webinar update on the subject will include a review of the previous years’ movies that are already available, and a discussion about alternative tactics that have arisen from recent virtual conferences and regulator panels.
    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 […]
    A Timeline as of 01/24/2021 Our Newest Employee’s FIRST Technical Article Another interim post-mortem review . . . . A Note About Updates: We are leaving this article as is, but for any updates to the timeline, check the Autopsy of the SolarWinds Hack Timeline Update article!      – Vigilize Introduction: As the managing […]
    PRESS RELEASE – FOR IMMEDIATE RELEASE BUSINESS NEWS FORUM AND CONFERENCE NEWS infotex is proud to announce that Dan Hadaway will be moderating a series of IT Forums for the Ohio Bankers League. “We are excited to continue fostering the relationship with the OBL to help educate and keep Risk Management at the forefront of […]
    Top 7 Trend Articles of 2021. . .  . . .For ISOs of Small Financial Institutions. Welcome to our annual T7 article:  a list of our favorite trend articles from the past year.  Our intent: help you organize your thoughts as your work through your strategic planning process.  We hope reviewing these articles will help you […]
    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! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around your office.  
    A Webinar-Movie In our current world of uncertainty there is at least one thing that is certain. Business needs to continue, and that means that it is important for managers to be able to meet with their team even if everyone is working remotely at this point. In this Webinar-Movie, Dan will compare virtual meeting […]