By FINTECH Books Contributor, Shadi A Razak
Cyber insurance is one of the fastest-growing areas of insurance in the last couple of years. The increased awareness of potential financial losses to cyber
threats drives the demand for cyber insurance coverage so high that it is outstripping the supply of policies. Last year, for example, witnessed a $2
billion written in premiums for cyber specific policies.
At the same time, the increased awareness of potential property loss and casualty as a result of cyber-attacks on smart appliances and connected cars deemed most of today’s policies as not fit for purpose. This is causing concerns among insurers and regulators as it leaves them with limited resources and knowledge to sufficiently measure the cyber security posture and performance of a growing pool of applicants. Insurers need data-driven security tools that provide them with an insight into the past and current cyber security posture and performance of an applicant.
Current methods insurers rely on: penetration tests and on-site audits, cannot offer the on-going visibility of an applicant cyber security risks and performance. How can insurers utilise data-driven security tools to assess, manage, control and quantify cyber security risks? Insurers can generate easy to understand ratings for applicant cyber security postures, compare it against other industry peers and make informed underwriting decisions.
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