As we become increasingly reliant on technology, the potential impact of cyber-related incidents continues to grow. Yet the cyber insurance market is relatively new in comparison with other lines of cover.
This straightforward guide explains how cyber risk and insurance has evolved and how a good cyber policy addresses these modern exposures.
“Cyber” is one of the most talked about topics in business, insurance and media but also seems to be one of the most misunderstood. And with good reason – it is an area associated with jargon, buzz words and what feels like a whole lot of complexity.
This is largely down to the fact that the development of cyber insurance has historically focused primarily on third party privacy exposures. At the same time, traditional insurance policies have tried, but rarely succeeded, at addressing cyber risks; this has left clients believing many exposures are covered when they actually aren’t.
So what should we mean when we talk about cyber risk? What do clients need to protect themselves against? The real answer is crime. Technology has revolutionised the world for businesses and individuals alike and the past twenty years in particular have seen monumental shifts in human behaviour directly linked to technological advancements. From the way we shop to the way we access bank accounts and book holidays, everyday life has changed fundamentally.
However, while the technology revolution has brought with it unparalleled levels of convenience and choice to millions of people across the globe, it has done the same for the criminal underworld. It is now far easier and far more lucrative for criminals to ply their trade digitally rather than physically. Cyberattacks are the modern crime and cyber insurance is the way to protect against them.