Other parts of this series:
In the first two parts of this series, we talked about the current state of cybersecurity regulations for insurers and the challenges of underwriting for cyber risk. The third aspect of the cybersecurity conundrum for carriers is how to create a more holistic strategy going forward in these uncharted waters.
For brokers, this means simply providing coverage against cyber risk will not be enough. The real value will come from support services such as:
- Forensic accounting,
- Cybersecurity training,
- Data gathering on cyber attacks,
- Assisting with reports and compliance.
In their report “Cyber Insurance Market Share and Performance,” Fitch Ratings analysts noted: “The insurance industry relies heavily on information systems, including mobile devices, to manage and administer their daily operations. Insurers face similar internal operational risks from cyber exposures as their corporate customers face. The onset of cyber threats creates challenges for insurers to securely protect data records, including private customer information, and quickly adapt and recover from any business disruption.”
Accenture’s “Building Confidence: Facing the Cybersecurity Conundrum” report recently outlined a few key steps carriers should follow for a more holistic approach:
- Define cybersecurity success. Insurers should align cybersecurity strategies with business imperatives.
- Pressure test security capabilities. Establish a realistic assessment of internal capabilities of your insurance organization.
- Protect from the inside out. Focus on the internal incursions with greatest potential impact and protect your organization’s key assets.
- Invest to innovate. Redirect some resources to new strategies, instead of continuing to support old programs.
- Make cybersecurity an organizational mindset. Employee training and refreshing cyber talent across the business will foster a culture digital trust.
- Build the board’s cyber literacy. Engage with enterprise leadership and make the case that cybersecurity is a critical pillar in the effort to protect overall value.
Cybersecurity is a complex issue that requires insurers’ attention to not only regulation and new services, but also to strengthening our own organizations as the digital world continues to evolve rapidly around us.