Reply to post: Cost/benefit

The cost of cyber insurance increased 32 per cent last year and shows no signs of easing

Mike 137 Silver badge

Cost/benefit

""I think, based on what we've found, cyber insurance is not that silver bullet that maybe people were hoping or thought it was.""

It never really was.

Many moons ago I evaluated a handful of policies for an international business. At the two ends of the scale were capped payout plans with minimal obligations attached and adequate payout plans with considerable obligations on the insured.

The policy with optimal cover included an obligation to advise the insurer of any changes to the infrastructure within a very short time. As my client was a dynamic business frequently introducing new online services and opening new local offices all the time world wide, the combined cost of the premiums, the notifications and the excess terms rendered the policy uneconomic unless a claim were made successfully more often than once every couple of years.

I finally recommended self insurance, whereby an emergency reserve could be retained, earning interest while not called upon, rather than the business making a regular annual payout accompanied by a trickle of ongoing management costs.

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