A little more than two weeks ago, the massive “WannaCry” ransomware virus hit over 150 countries infecting about 200,000 to 300,000 computer devices and systems globally, as the worst nightmare for cyber security experts unfolded rendering them helpless.
Cyber insurance a must
“Cyber insurance is not openly spoken or discussed in terms of enterprise security and business planning mainly because there’s lack of awareness and education, but it is absolutely necessary,” says Sanchit Vir Gogia, Chief Analyst & CEO – Greyhound Research.
Confusion and complexities around cyber insurance
“There prevails a major confusion between cyber risk insurance or cyber liability insurance coverage (CLIC) and the errors and omissions (E&O) insurance. In fact, our upcoming Greyhound survey, State of Cyber Insurance 2017, found only 12 percent organisations had clarity on cyber insurance while 68 percent organisations were confused and mixing up CLIC and E&O,” informs Gogia.
Missing piece in the enterprise security
“Not many insurance companies are offering cyber insurance products due to lack of standardization in terms of underwriting of the types of risks like cyber attacks and threats, data breaches, viruses, etc., as well as third party liability in terms of data protection,” points out Gogia.
“A forensic probe is an expensive exercise so who will bear its cost remains a question. Even the factors that determine business losses vary and importantly the definition of “business loss’’ remain highly ambiguous,” Gogia explains why cyber insurance is full of complexities.
In the present scenario, Gogia reckons that cyber insurance providers are struggling to come up with products that can cover all the aspect including investigation, liability, cost and insurance cover or claims.
Cyber insurance as a part of cyber security plan
“Partnerships of Symantec and F-Secure with insurance companies show that they are willing to take-up co-liability and co-ownership in event of cyber attacks. So IT firms and tech vendors should also take up some onus and not just point fingers at CIOs or CISOs,” concludes Gogia.
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Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.
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