As the cyber insurance market keeps evolving rapidly, organizations are finding it increasingly difficult to adapt to the changes in requirements and costs. Global IT research and advisory firm Info-Tech Research Group aims to help organizations assess and adapt their cybersecurity insurance policies by publishing a new blueprint, Assess Your Cybersecurity Insurance Policy.
Addressing Cyber Insurance Challenges
Cyber insurance can offer protection and peace of mind amid ransomware threats and data breaches, but some industry professionals argue it is a money pit. Logan Rohde, a senior research analyst at Info-Tech, explains that the novelty of cyber insurance leads to a lack of standardization and occasionally vague policy language. Rohde emphasizes the importance of comprehending policy coverage and exclusions, and recommends having a legal team review unclear language, especially concerning claims involving ransomware, data breaches, or acts of war.
Key Considerations for Organizations
Info-Tech’s blueprint addresses the key aspects organizations should consider when assessing their cyber insurance policies. These include understanding risks and risk tolerance, the impacts of realized risk, cost of program maturation, and benefits of having insurance during an incident. Additionally, the blueprint highlights various alternatives to cyber insurance, stressing the need for organizations to evaluate their specific requirements and determine the best course of action.
Managing Organizational Risk Effectively
Reducing the exposed surface area of an organization can help lower insurance premiums, as insurance companies typically use third-party vulnerability scanning services. By minimizing the attack surface, fewer potential vulnerabilities will be discovered by these services. Info-Tech also suggests that organizations should consult insurance brokers to navigate the cyber insurance market when comparing policies between providers. Furthermore, the research underscores that organizations can mitigate or avoid risk by improving their information security program, regardless of whether they choose to obtain cyber insurance.
In conclusion, Info-Tech’s blueprint provides valuable insights that assist organizations in assessing and managing their cyber insurance policies effectively. Leading organizations to understand their risks and implement strategies to either obtain appropriate coverage or seek alternative solutions to protect them in the ever-evolving cyber insurance market.