Source: Security Week
08 Jun 2018
Cyber insurance is a problem. It is a new industry with huge potential but great difficulties. Getting premiums right is an example — the cyber insurer needs to fully understand the financial risk it incurs in able to set premiums high enough to cover the risk and still make a profit, but low enough not to kill the market.
Steve Durbin, managing director of the Information Security Forum, describes the problem. “We have already seen that the financial impact of some information security risks is being transferred through cyber insurance,” he told SecurityWeek.
“However, moving forward, I anticipate that several large data breaches will expose aggregated risks and cause insurers to suffer significant financial losses. As a result of this mispricing debacle, several insurers will be forced out of business while others will raise premiums significantly, expand contract exclusions and restrictions, or avoid cyber insurance altogether. This will make cyber insurance no longer financially viable for many organizations, and the market will contract and take several years to recover.”Read Full Article