ENISA has released a report on its recent study of the cyber insurance market.
The report Incentives and Barriers to the Cyber Insurance Market in Europe attempts to define cyber insurance, why cyber insurance could be an attractive measure for transferring financial risk, and describes current market offerings.
The report goes on to discuss barriers to the development of an effective cyber insurance market including:
- Uncertainty about the extent of risk and lack of robust actuarial data
- Uncertainty about what risk is being insured
- Ongoing technological evolution
- Lack of visibility on what constitutes effective protection measures
- The absence of an insurer of last resort to re-insure catastrophic risks
- Perception that existing insurance already covers cyber risks
The report provides recommendations to address the issues. At first glance you might consider the report is primarily of use to those within the insurance industry but I think it should have a much wider audience since it addresses many of the issues industry has in quantifying risks and justifying spending on security. Of course if your organisation is considering buying cyber insurance, or even believes it already has such insurance (possibly in error), the report will provide useful matter for consideration.
Posted on: 04 July 2012 at 21:11 hrs