Category: Insurance Coverage

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Boards Push Insurers to Quantify Cyber Risks
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Top Five Cybersecurity Insurance Tips
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Cyber Insurance is Only a (Small) Part of the Solution
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UK Government Issues Cybersecurity Insurance Report

Boards Push Insurers to Quantify Cyber Risks

By Cameron Abbott and Rebecca Murray

US risk management firm Advisen recently held the Cyber Risk Insights Conference where insurers, brokers, corporate risk managers and CSOs came together to discuss the importance of company CFOs quantifying cybersecurity risks. Panelists included the risk managers of Merck and Time, who both classified cybersecurity risk exposure as a top danger faced by corporations. Time’s risk management department, for example, is working to quantify the company’s exposure to cyber attacks so that it can transfer some of the risks to insurers. However, Time’s director of risk management says culling all cyber-risk-management information together in a meaningfully predictive way is a challenging task.

Furthermore, gaining assistance from insurers about how to quantitatively define cybersecurity risk is also problematic as the insurance industry is only getting started on truly understanding how to forecast cyber losses. Cyber security practice leader for insurance broker Lockton Cos, Ben Beeson has revealed that insurers have only really become aware of the vast extent of loss that can eventuate when handling personal data this year. Keeping up with incredibly evolving and dynamic cybersecurity threats is sure to be an immense challenge for insurers. Read more here.

Top Five Cybersecurity Insurance Tips

By Jim Bulling and Roberta Anderson

The increased risks posed by cybersecurity breaches has meant that many organisation are looking to insurance to address some of the exposure. But cybersecurity insurance is still new and there are things which companies wishing to purchase cybersecurity insurance should look out for. Here are five tips if you are considering obtaining or renewing a cybersecurity insurance policy.

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Cyber Insurance is Only a (Small) Part of the Solution

By Jim Bulling

Insurers in the U.S. and Europe are forecasting that the market for cyber insurance will grow exponentially in the next five years as more companies look to beef up protection against malicious cyber attacks.

While the insurers see a significant new market emerging, there are signs that they are wary of the risks and this is impacting on premiums and the limitations being placed on cover. There are a number of insurers offering cyber cover in the Australian market and companies looking for additional protection would be well served by closely examining the terms of the proposed cover to ensure it extends to the more significant cyber risks and does so in a way that complements rather than overlaps the existing insurance program which an organisation has in place (eg Public Indemnity , Directors and Officers Liability, Crime and Property).

It is also worth noting that insurance should only be seen as one component of an organisation’s risk management processes around cybersecurity. A leading insurance broker has suggested that investment in technology is the most important factor in reducing the risk profile while the contribution from insurance is much more modest and to be effective needs to be accompanied by investment in technology.

UK Government Issues Cybersecurity Insurance Report

by Jim Bulling and Julia Baldi

The UK government has issued a report on cybersecurity insurance which details new joint initiatives between government and the insurance sector to help firms get to grips with cyber risk. The report encourages businesses and financial institutions to review their risk management processes and seek to obtain ‘Cyber Essentials certifications’ from insurers to ensure adequate cybersecurity is in place.

View the  Press Release and Report.

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