The Federation of European Risk Management Associations (FERMA) has recently raised concerns about the viability of cybersecurity insurance.
Without intending it, some of the debate around cyber risk insurance can get alarmist and there is a need to challenge some of the fears and concerns out there.
Firstly, there is sometimes a sense that cyber insurers and their products are disconnected from their risk manager clients.
The reality is that cyber risk insurers are dynamic and competitive.
The nature of cyber risks is such that cyber insurance is like no other coverage line in the speed at which it must innovate to address the needs of its clients.
For example, coverage has evolved to cover complex supply chains, the theft of money and securities, the replacement of physical equipment, and to help the business community deal with the scourge of ransomware.
The takeaway for risk managers is that they should not be tempted to assume an understanding of cyber risks by market headlines.
Given the complex nature of cyber risks, risk managers need to take the time to dig into what their exposure really is and lean on expert advice. This can be best done through a broker or…
