Cyber Threats are Changing the Fundamentals of Security
Insurance companies need to move from offering risk transfer products to offering comprehensive cyber resilience
Cyber Threats are Changing the Fundamentals of Security: Insurance companies need to move from offering risk transfer products to offering comprehensive cyber resilience
According to a recent Frost & Sullivan study commissioned by Microsoft1 surveying Hong Kong businesses, the potential economic loss due to cybersecurity incidents can hit a staggering US$32 billion, 10 percent of Hong Kong’s total GDP of US$321 billion. The overall long term costs for businesses could be even higher once the reputational damage is factored in. It’s almost inevitable that most organizations will encounter cyber threats but are not prepared adequately to deal with this enormous challenge.
In 2018, Warren Buffet2 commented “I don’t think we or anybody else really knows what they’re doing when writing cyber”, while Evan Greenberg, CEO of world’s largest public P&C insurer, thinks that cyber risk is insurable and “Chubb is a large writer” of cyber coverage.
With the very real threat of loss incurred through cyber-incidents for businesses, and opposing viewpoints of the efficacy of writing cyber insurance policies, how can organizations prepare themselves to deal with cyber incidents and how can insurance companies support them?
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