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The purpose of insurance is to transfer risk. Compliance with underwriting requirements or audits is not the same as security. If it’s cheaper to just check che
by supertrope 5y ago
The purpose of insurance is to transfer risk. Compliance with underwriting requirements or audits is not the same as security. If it’s cheaper to just check checkboxes, pay the ransom, and then hike next year’s premiums then they’ll do that.
- pyuser583 5y agoBut it’s not. Most of the insured damages in cyber insurance are not for paying the ransom, but reputation also damage, liability, etc. The ransom is nothing.
- aliasEli 5y agoDo they also insure against reputation damage? How would that work and could they measure it?
- pyuser583 5y agoYes. How they measure damage depends on what specifically is insured. For example, a policy might cover the cost of a crisis management PR team. Or it might cover the cost of rebranding, including corporate reorganization. A wide ranging reputational risk policy can become very expensive, very fast. https://advisorsmith.com/what-is-reputational-risk-insurance/ https://advisorsmith.com/what-is-reputational-risk-insurance...