There is no denying that cyber risk is quickly becoming the next peak peril with great potential for systemic loss. Businesses are struggling to determine the extent of their cyber exposure and are confused by what insurance is needed for adequate protection. Insurers are equally uncertain about what they are actually selling, and risk being caught out by 'silent' cyber exposures.
In the first edition of the QOMPLX Cyber Risk Series, a new in-depth view of cyber risk management is discussed. It argues that cyber telematics holds the key to closing the cyber insurance gap. For underwriters and modelers, cyber telematics offers a quantitative risk-based approach for assessing cyber risk, empowering organizations to manage and reduce their risk.
While still in its infancy, this data-driven approach is critical to combating a sentient and ever-changing threat landscape, while facilitating the growth of the cyber insurance market. Cyber telematics is the missing link insurance carriers so desperately need to understand and accurately price cyber risk.
With the insurance industry at a crossroads, insurers and brokers have a significant opportunity to drive awareness of cyber telematics as a solution that can improve organizations’ resilience to cyber threats and shape ongoing responses.