Cybersecurity has begun to resemble the healthcare industry in recent years.
Like with corporate health and wellness initiatives, companies are urged to advance preventive strategies aimed at avoiding expensive, catastrophic events that drive unsustainable costs. Networks are referred to in the language of biology, as experts have begun to urge building cyber immunity, supported by machine learning solutions. And although cyber insurance products have long been available on the market, they’re only now starting to be seen as a necessity across the private and public arenas – much like health insurance policies have long been considered a must-have.
However, considering the substantial costs of cybersecurity insurance products, it’s important that organizations realize the critical challenges that make this type of insurance unique – and make it a far cry from the matured practices of health insurance.
Foremost among cyber insurance’s limitations is the challenge of defining risk. Organizations face greatly varying threats – ones that evolve rapidly to boot. Thus, it can be difficult for an insurer to have a handle on what its policies should include. It also can be difficult for a buyer of these products to understand what they are getting. Are the terms of the policy going to meet your needs when disaster strikes? Will you be left without recourse if they don’t?
Also be aware that cyber insurance requires organizations to maintain a diligent defense, so by no means should these products be seen as a replacement for competent cybersecurity. If you are preparing to enhance your cyber protection, cyber insurance may be one avenue to consider. But be sure to consult with expert security consultants about how to best position yourself for effective risk management.
These and other challenges don’t mean that you shouldn’t consider cybersecurity insurance, or that its cost outweighs its benefits. It simply means that your organization should understand these risks before jumping into discussions with an insurer. Third-party risk assessments, penetration tests and security audits should all be part of the preparations.
Lunarline is here to help you in your cyber risk management efforts. For information on our solutions and services, contact us today.