The risk of Financial Loss caused by Cyber related risks continues to increase. It is a serious and pervasive issue confronting businesses relying on modern technology: more or less every hour of every day.
Insurance is great: we earn our keep by selling it. But, as mentioned in an earlier post – “Prevention is better than cure”.
It seems probable that the dangers of losses from Cyber related risks have been poorly expressed over the last few (20!) years. We have all seen dark pictures of people in hoodies staring at Matrix-like screens. I don’t think this was helpful. Let’s be honest, crossing a road is potentially more dangerous than the average cyber threat. However, we are taught from a very young age how to take care when crossing a road, whilst we are really not very good at teaching ourselves (or our children) how to take care in a Cyber oriented world.
Well, many of us will stand a few feet away from a 40 ton truck doing 50 miles per hour. But if we replace the truck with a comparatively small snake or spider – guess what? Yip! We’d all be running in the opposite direction.
Cyber risks are a reality. They cost businesses huge amounts and all too frequently. Some fail because of it. But cyber losses, now, are a little like cancer 50 years ago: nobody talks about them.
It’s time to talk.
But we need to be careful of how we talk. An article (that prompted me to write this) was accurate in what it says – but, in modern day parlance, the message might be written in a foreign language.
– “businesses need to be Active. In October, we’re exploring how businesses can gain a security advantage over threat actors through a deeper understanding of the most common and highly exploitable cybersecurity weaknesses”.
It goes on – How to Improve Client Insurability Using Actionable Security Insights.
In fact, I believe that the author works with one of the most forward thing Cyber insurers in the UK (and the US) market. What they are saying is entirely correct. Perhaps the insurance brokers they are preaching to all have an understanding – but I would bet, freely, that most mere mortals haven’t a clue.
Simple training is inexpensive. Train your staff to avoid a problem – and save yourself a fortune. (Basic training is available from businesses like Gambryce at £25.00 per person per year: www.Gambryce.io )
Check your systems – regularly and frequently. You can do this. There are IT companies set up to do this. Some insurers do this. Prevention is better than cure!
If you can demonstrate that you check your systems regularly (or that they are checked on your behalf), Cyber insurance will be cheaper. Consider this a win/win situation to you! Resolve potential issues before they are real issues!
We consider Cyber Insurance hugely important. True enough, we are insurance brokers – and selling insurance is what we do. But we only sell insurance we think ‘you’ need. And, that insurance has to be good value – and a real benefit when things go pear-shaped! (No disrespect to pears!)
For help and information on Cyber Insurance – contact BGi.uk
Georgia Morley, Cert CII, BA (Hons) or Henry Vincent