New Study Finds Key Concerns Arising from Security Breach May Not Be Covered By Cyber Insurance
Hikvision on Ways to Prevent Security Breach
Cyber insurance may not cover key concerns arising from security breach or other cyberattacks, according to new research covered in the Security magazine article, “Study Says Cyber Insurance May Create False Sense of Security.”
From the article: “In a study of more than 100 chief financial officers (CFOs) and other senior financial executives, commissioned by FM Global, one of the world’s largest commercial property insurers, 45 percent said they expected their insurer will cover “most” related losses from a cybersecurity event, and 26 percent said they expected their carrier will cover “all” related losses.”
A significant cyber-event may create security concerns and costs that aren’t covered by insurance policies, such as:
- Decline in market share and/or share price.
- Lower revenue and earnings.
- New challenges with regulatory compliance.
In the article, Kevin Ingram, executive VP and CFO at FM Global added: “As essential as cyber insurance is, the findings indicate financial executives may be deriving a false sense of security from it. While insurance is an essential part of the risk management formula, there are losses related to a cyberattack that insurance cannot cover …”
For more ways to prevent security breach, check out this Hikvision blog: “SSI’s 2019 Physical-Logical Security Assessment Highlights Industry Focus on Cybersecurity, Concerns about Security Breach.”