Survey Shows Cyber Insurance Marketplace Badly Needs Risk Quantification
July 14, 2022
A survey of 400 global insurers finds the cyber insurance business “isn’t working for insurers, brokers or their customers.”
According to the survey report, insurers are raising cyber insurance premiums, reducing coverage limits, requiring increasingly burdensome technical questionnaires from customers — and in the end, over half of the firms surveyed still reported being only “somewhat confident’ or “not at all confident” in their underwriting process.
Why is the industry that invented the concept of “risk” in such a state over cyber risk?
The report offers some well-used explanations: “In cybersecurity, the past is not a good predictor of the future, as adversaries are innovating to find new and improved returns on their investment. What makes this especially challenging is that insurers don’t have access to accurate data regarding customers’ assets or security controls. Not only is this critical information not currently collected, it changes daily.”
Read the full article from Security Boulevard.
