Insurance Companies Pushing for More Cybersecurity
This is a good development:
For years, said Ms Khudari, Kiln and many other syndicates had offered cover for data breaches, to help companies recover if attackers penetrated networks and stole customer information.
Now, she said, the same firms were seeking multi-million pound policies to help them rebuild if their computers and power-generation networks were damaged in a cyber-attack.
“They are all worried about their reliance on computer systems and how they can offset that with insurance,” she said.
Any company that applies for cover has to let experts employed by Kiln and other underwriters look over their systems to see if they are doing enough to keep intruders out.
Assessors look at the steps firms take to keep attackers away, how they ensure software is kept up to date and how they oversee networks of hardware that can span regions or entire countries.
Unfortunately, said Ms Khudari, after such checks were carried out, the majority of applicants were turned away because their cyber-defences were lacking.
Insurance is an excellent pressure point to influence security.