Cyber security is becoming a priority as new vulnerabilities are revealed and digital attacks become more common
Cyber security is gaining more serious attention, especially as new OpenSSL vulnerabilities are announced. Two new vulnerabilities were revealed recently, both of which allow malicious groups or individuals to exploit information stored on an insecure computer or mobile device. Cyber attacks are becoming more common and they are beginning to attract actual attention, moving from the realm of modest concern to serious problem. Cyber insurance may be able to help ease the problem, but it is not likely to solve the cyber security issue entirely.
Cyber attacks can have a massive impact on a business
Recently, the GameOver Zeus malware was discovered to have affected 1 million computers, leading to a significant loss in business and customers for many companies. Hunton & Williams LLP, a legal service organization, notes that antivirus software was not enough to prevent this malware from infiltrating corporations and leading to a loss of business. Many security programs are falling behind, unable to keep up with the rate at which malicious software is becoming more advanced. Businesses may not be able to rely on security software any longer and may have to turn to the insurance industry for the protection they need.
Cyber insurance can provide some help, but is not an absolute solution to digital threats
Cyber insurance can help a business recover from a significant cyber attack. Typically, this type of insurance covers legal services, recovery services, and can offer identity theft protection solutions to consumers that have been affected by a cyber attack. For small-scale attacks, conventional coverage could be enough to mitigate serious losses. The insurance industry, however, is not yet well versed in digital threats and how to overcome them.
Insurers are still trying to understand the digital world
Digital threats are still relatively new to the insurance industry. These threats are not something that the industry has had to deal with in the past. When it comes to natural disasters, insurers have several years of experience in understanding risks and recovering from loss. The digital world is somewhat exotic, however, and there are very few cyber insurance policies available that can cover all damages caused by a cyber attack.