With the rising complexity and sophistication of cyberattacks, cyber insurance continues to evolve in a way that takes a much more active role in a policyholder’s cybersecurity posture. Long gone are the days where cyber insurance could be tacked on to an existing liability or property policy and be written up in 15-30 minutes.
Why purchase cyber insurance?
Failure to purchase cyber insurance intensifies risk exposure. No balance sheet can protect a business from lawsuits, attorney fees, restoration costs and reputational damage. Cyber insurance now is a business necessity, and organizations need to get cyber insurance coverage as right as possible.
A complex environment
Today’s cyber insurance practices require a level of compliance that involves a deep dive into every facet of an organization’s security environment. The optimal way to do this is for CISOs to collaborate with risk managers and bring probability thinking and cybersecurity maturity into the discussion. For many organizations, this is complicated because often, risk and security managers operate independently, creating silos. And if you don’t appear to have your ducks in a row, that can affect your ability to secure a favorable policy.
An underwriting evolution
In the past, underwriters would ask if you had a CISO. Now, they go much further, not only asking if you have a CISO, but also who that CISO is, their educational background, credentials and certifications. They also want to know who’s on the team and their experience. What’s more, they want a complete list of your vendors to ensure you’re working with approved providers with a proven track record of strong security and compliance.
How to navigate this complex environment?
We know how daunting it can be to secure or renew a cyber insurance policy. That’s why we’ve put together this comprehensive guide to help anyone making cyber insurance policy decisions navigate the intricacies of this ever-changing industry.
This guide helps CISOs be smarter about cyber insurance and risk management. In it, we share lessons learned, best practices and more: