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This reminds me that there is a fascinating Econtalk podcast episode on the subject of how the kidnapping insurance market works. Companies who have employees

by patja 6y ago

This reminds me that there is a fascinating Econtalk podcast episode on the subject of how the kidnapping insurance market works. Companies who have employees working in parts of the world where they are at risk of kidnapping for ransom have access to insurance against this risk. Two of the things that struck me about this market are (a) the insurance companies require their customers to get serious about mitigating the risk. Employees all have to attend training on how to avoid kidnapping and what to do when it happens, the insurance customer has to take other measures to limit where they go, the customer has to beef up physical security, etc. And there are some situations they refuse to insure, so that's a big red flag. The insurance company becomes a partner in doing everything they can to prevent kidnappings. and (b) customers are sworn to secrecy and may not reveal that they have this insurance. Employees don't know they are insured against kidnapping. They don't want kidnapped employees spilling the beans. The insurers have local negotiators in their employ who often have longstanding relationships with the kidnappers. Anyways, a bit tangential, but I learned a lot about this niche industry, and it gave me more of an appreciation for how insurers can raise the professionalism of their customers in their efforts to minimize risks. A similar approach with the benefit of setting standards could definitely apply to cybercrime insurance. https://www.econtalk.org/anja-shortland-on-kidnap/ https://www.econtalk.org/anja-shortland-on-kidnap/

Ichthypresbyter 6y ago
The idea of an insurance policy you have to keep secret reminds me of chancel repair insurance in England. Because of various arcane feudal remnants, the ownership of certain pieces of land comes with an obligation to pay for repairs to the local church building. This can be very expensive, so buyers of land where there is a possibility that this liability might exist are advised to buy insurance to cover it. This insurance is very cheap, because it's quite rare for this liability to be discovered- usually it's a one-off payment of about £30-50 on buying the property. It is, however, a standard term in the policy that it is void if you tell anyone that it exists. The reason for this is that, while the liability for repairs to any given church originally attached to one piece of land, this land has often been subdivided. In this case, the owners of all the pieces of land are jointly and severally liable for repairs- in other words, the church can go after any one of them for the full cost. And, of course, a property owner with insurance is a more attractive target as they're more likely to be able to pay, and to do so without making unpleasant headlines about how they might lose their home because of an obscure mediaeval law.

by patja 6y ago

Ichthypresbyter 6y ago

The idea of an insurance policy you have to keep secret reminds me of chancel repair insurance in England. Because of various arcane feudal remnants, the ownership of certain pieces of land comes with an obligation to pay for repairs to the local church building. This can be very expensive, so buyers of land where there is a possibility that this liability might exist are advised to buy insurance to cover it. This insurance is very cheap, because it's quite rare for this liability to be discovered- usually it's a one-off payment of about £30-50 on buying the property. It is, however, a standard term in the policy that it is void if you tell anyone that it exists. The reason for this is that, while the liability for repairs to any given church originally attached to one piece of land, this land has often been subdivided. In this case, the owners of all the pieces of land are jointly and severally liable for repairs- in other words, the church can go after any one of them for the full cost. And, of course, a property owner with insurance is a more attractive target as they're more likely to be able to pay, and to do so without making unpleasant headlines about how they might lose their home because of an obscure mediaeval law.