The challenges facing insurers in assessing cyber risks, as highlighted in the below article about a survey conducted by KYND Limited, were very insightful on the current state of the cyber market:
1. Lack of accurate, real-time cyber exposure insight (35%)
Underwriting demands up-to-the-minute data to assess risks accurately. Insurers are seeking better tools and technologies to gain a clearer picture of their clients' cyber exposure.
2. Clients not being transparent about their cybersecurity practices (21%)
Transparency is key in any partnership, and this is especially true for cyber insurance. Insurers depend on clients to provide a full disclosure of their cybersecurity measures to price coverage effectively and understand the risk.
"The most critical factors for assessing an organization’s cyber posture were endpoint detection and response (29%), cybersecurity awareness (26%), and identity access management (14%)."
3. Difficulty in accurately estimating systemic loss through modeling (21%)
Cyber incidents can have far-reaching implications beyond the immediate target, ex. dependent business interruption, funds transfer fraud
Collaboration between insurers and insureds, investment in analytics, and encouraging cybersecurity awareness are essential steps forward.
#CyberInsurance #CyberSecurity #Insurance #CyberRisk
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