Security News > 2020 > June > Plugging the Discrepancy Between Cyber Insurance Coverage and Actual Risk
"There is a lack of options for small and mid-size enterprises in need of higher limits for cyber insurance. When cyber coverage is delivered as an endorsement to broader policies, limits are too often too low to cover actual cyber incidents. Policyholders might also under evaluate expenses involved in the response and recovery post-breach. There is a need for greater education, insights and need for standalone products."
One of the biggest problems in correctly aligning insurance cost with insurance coverage is the very nature of cyber insurance.
Stand-alone cyber risk insurance policies are not always available, and accurately aligning actual risk with insurance is complicated when every customer has a different risk exposure.
What he believes, he continued, "Is reflected in the buying intentions results of this survey. Cyber insurance buyers are getting educated about the need for better protection. We don't see them turning away from anything that could help avoid a cyber incident. But with the general understanding that cybersecurity tools will not thwart 100% of attacks, they are turning to cyber insurance to cover resilient risks."
Its purpose is to map insurable threats and risk exposures to deliver tailored insurance coverage.