Cyber: No Protection Against Complacency
By Adam Stern | InsuranceThoughtLeadership.com
While data is considerably safer these days in the cloud, no cyberinsurance policy can substitute for active vigilance.
Cybersecurity insurance appears to be enjoying a heyday. While it’s been around for some time, the perceived need for it has never been greater, as DDoS attacks and major hacks grab headlines and fray nerves.
As recently reported in The Hill, Lloyd’s of London approximates that “average cloud service events of varying severity range from $4.6 billion in total damages for a ‘large’ attack to $53.1 billion for an ‘extreme’ one. In the vulnerability example, the average costs range from $9.7 billion for a large event to $28.7 billion for an extreme one.”
Lloyd’s suggests that we ought to insure cyberattacks as we do natural disasters. Ransomware imposes its own sort of multiplier effect, measured in business loss, damage to reputations and (customer) privacy and, of course, in out-of-pocket outlays paid handsomely in Bitcoin.