Cyber insurance forces companies to rethink risk management
Cyber insurance is a unique risk transfer product for enterprises. When a company purchases property insurance, the fire that might damage its offices isn't trying to figure out better ways to burn down the building.
Cybersecurity professionals know that digital threat actors are altogether different, always working on clever, sophisticated attacks to access systems and steal sensitive data. When attackers succeed, the damage to the business's operations, reputation and bottom line can be significant. Cyber insurance, with a swiftly growing market nearing $20 billion in premiums, offers enterprises a potential shield against the worst of the financial fallout resulting from a data breach.
The cyber insurance industry, however, is changing as insurers reevaluate which types of digital risk they will cover and the reasonable cybersecurity measures customers are expected to implement. Just as a property-casualty insurer would not cover an office that did not take prudent steps to prevent or...
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