A RUSI paper finds that the contribution of the insurance sector to improving cyber security practice is ‘more limited than policymakers and businesses might hope’, and recommends government and industry action.
Key findings
- To date, cyber insurance has failed to live up to expectations that it may act as a tool for improving organizations’ cyber security practices.
- However, insurers are increasingly providing cyber security services that could address this.
- A potentially insurmountable challenge for the insurance industry is the inability to collect and analyse reliable cyber risk data. Without this, there are significant questions around the insurability of cyber risk.
- Ransomware has become an existential threat for some insurers. At a time of mounting losses and rising public criticism, the paper argues for a reset in the industry.
Identified along climate change and pandemics as ‘one of the most challenging risks facing societies in the next five years’ by the World Economic Forum, cybercrime is a complex, rapidly growing and severe threat to both government and business. In 2020, cybercrime costs the world economy more than $1 trillion.
This rise is…
