Cyber Security Practices Insurance Underwriters Demand

  • 12 December 2014
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By Natalie Lehr
 
Insurance underwriters aren't looking for companies impervious to risk. They want clients that understand the threat landscape and have demonstrated abilities to mitigate attacks.
 With security breaches on the rise, IT professionals spend a lot of time questioning what kinds of cyber risk their companies’ insurance policies will cover. However, as those policies quickly move from optional to necessary, insurance companies are the ones asking the hard questions.
Before underwriters give the green light to cyber liability coverage, they want to see proof of insurability. That doesn’t mean they’re looking at your actuarial risk. To the contrary, regardless of past history, virtually every company today is susceptible to hacking or insider threats. That is the new reality. Therefore, insurance companies are focusing on factors beyond historic risk to inform their decisions.
When you seek out cyber insurance, underwriters will ask that you demonstrate your insurability as part of the pre-binding due diligence process. Doing so involves three primary factors:
 
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