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RESEARCH AND BRIEFINGS

Client Briefing: Cyber Insurance - Why better information will give you better coverage

 


While the awareness around cyber and cyber risk management is growing at a rapid pace, so is the understanding that cyber insurance is available to fund losses arising from cyber risks.

While the awareness around cyber and cyber risk management is growing at a rapid pace, so is the understanding that cyber insurance is available to fund losses arising from cyber risks.

As the nature and severity of cyber attacks themselves keep escalating, the options for coverage are evolving, though not necessarily at the same rate. Buying an off-the-shelf cyber policy may satisfy the ‘tick box’ for coverage, but may still leave your business exposed in a number of ways:

  • You might not fully understand how your insurance policy will respond in the event of a loss from a cyber attack, or what the limitations and exclusions are. After the fact is too late.
  • Cyber coverage chosen on price alone or based on a benchmark for a specific industry, company size or turnover may miss some unique complexity or feature of your business.
  • With the cyber insurance market still evolving, proposal forms from insurers are being frequently updated, taking into account things such as the use of Cloud services and bring-your-own-device (BYOD) practices. Proposal forms can range from the complicated to the overly simple where key information is missed.
  • The risk for large organisations that operate globally, or have subsidiary companies or complicated reporting structures, is that cyber risks may not be adequately captured on a standard proposal form. Equally, the questions asked in the proposal forms may not be detailed enough to fairly rate the risk.

To be confident in buying cyber insurance, you need to clearly understand the real potential for exposure within your business. Download the full briefing to understand the fundamentals of assessing your cyber risk. This includes what your risk assessment team should cover and what options there are for covering cyber loss.