Cyber Security insurance is designed to mitigate losses from a variety of cyber incidents, including data breaches, business interruption, and network damage.
A robust cybersecurity insurance market could help reduce the number of successful cyber attacks by:
(1) promoting the adoption of preventative measures in return for more coverage; and
(2) encouraging the implementation of best practices by basing premiums on an insured’s level of self-protection.
Many companies forego available policies, however, citing as rationales the perceived high cost of those policies, confusion about what they cover, and uncertainty that their organizations will suffer a cyber attack. In recent years, the United Network for Cyber Security has engaged key stakeholders to address this emerging cyber risk area.