Calculating the cost of cyber-risk
The role of cyber-risk insurance is a complex issue for insurers and remains largely misunderstood by businesses that could benefit from cover
Most businesses understand the need to protect networks and data assets if client trust and operational functionality are to be maintained. With the General Data Protection Regulation coming into force on May 25, failure to do so could lead to fines of up to €20 million or 4 per cent of global annual turnover. Ultimately it is all about protecting the bottom line. So why is there far less understanding about the role cyber-risk insurance can play?
Given that calculating cybersecurity risk exposure itself is complex, it shouldn’t be surprising insurers face difficulties in creating effective and affordable cyber-risk policies. Technology evolves quickly, as do use-case scenarios, and that’s making it increasingly difficult for both businesses and insurers to keep pace.