Thursday, 21 July 2016

Cyber Insurance Hits the Spotlight

For a long time, when the topic of the economics of cyber threats is being discussed, cyber insurance is usually relegated. For so long, cyber insurance has been pleading to have the center stage but with the ever growing cyber threats, not only has it hit the spotlight, it's been encouraged to stay longer in it. Over the years we have seen governments of the world come together to fight the menace of cyber-attacks.

As the fight intensified, cyber hackers seemed to form a coalition of their own. Mostly targeted was the energy, aviation, health, financial industry. Obviously this caught the attention of all who were watching. In other to keep businesses afloat after such hits, governments started partnering with cyber insurance companies to help play the buffer for the risks.

Cyber insurance companies have assisted in billions of dollars worldwide. As the awareness grows, more businesses are buying cyber insurance policies. With the spotlight came a new demon. Overtime, businesses with average cyber security started falling prey to these cyber-attacks. This meant cyber insurance companies had to pay for claims filed. It had to come to a point were some insurers had to place a limit on coverage. For instance, some insurers place coverage limits to $100 million. This means if the damage or loss is more than $100 million, you would have to bear the remaining cost.

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