What is Cyber Insurance?
Cyber insurance is a risk management technique whereby a network user’s risk is transferred to an insurance company, in exchange for remuneration, i.e. premium. Examples of potential cyber insurers might include ISPs, cloud providers, traditional insurance organizations. Cyber insurance advocates believe that cyber insurance will lead to the design of insurance policies that will transfer an appropriate amount of self-defense liability to customers, thus making cyberspace more powerful.
Here, the term “self-defense” implies the efforts of network users to secure their systems through technical solutions such as anti-virus and anti-spam software, firewalls, system usage, etc. safe operating, etc.
Cyberinsurance also has the potential to become a market solution that can match the economic incentives of cyber insurers, users (individuals/organizations), policy makers and policymakers. provides security software. that is, cyber insurers will profit from appropriate premium pricing,
network users will seek to cover potential losses by jointly purchasing insurance and investing in institutions. safeguards, policymakers will ensure overall cybersecurity increases, and security software vendors may experience an increase in product sales by forming alliances with companies. network insurance company
Cyber insurance is a product that helps businesses reduce risks from cybercrime activities such as cyberattacks and data breaches.
It protects organizations from the cost of Internet threats affecting IT infrastructure, information governance, and information policy, which are often not covered by commercial liability policies. commercial and traditional insurance products.
Cyber insurance works the same way businesses buy insurance against physical risks and natural disasters.It covers the losses a company can incur as a result of a cyber attack. https://youtu.be/8lH_Z1otQfM
Why is cyber insurance important?
Cyber insurance is becoming increasingly essential for all businesses as the risk of cyberattacks targeting applications, devices, networks, and users increases.
Indeed, a breach, loss or theft of data can have a significant impact on a business, from loss of customers to loss of reputation and revenue.
Enterprises may also be liable for damages resulting from loss or theft of third-party data.
A cyber insurance policy can protect a business against cyber events, including acts of cyber terrorism, and help fix security issues.
For example, hackers broke into Sony’s PlayStation Network in 2011 and exposed the data of 77 million users.
The attack also blocked PlayStation Network users from accessing the service for 23 days.
Sony incurred costs of more than $171 million that could have been covered by cyber insurance. However, he has no policy, so he bears the full cost of the network damage.