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April 11, 2019
2019-5511

Legal challenges are shaping cyber insurance discussions

The latest EY Global Information Security Survey reveals that only 65% of organizations believe they have cyber insurance that meets their needs. Two recent, significant legal actions indicate that as cyber threats and their associated risks increase, even the remaining 35% of organizations may not be adequately covered by insurance. The two cases raise a number of questions about the direction of cyber insurance.

  • As some cyber attacks are alleged to be motivated by nation-state-driven agendas, should the exclusion for warlike situations in insurance policies be renegotiated?
  • Are insurance policies providing sufficient coverage for shareholder lawsuits that may follow a cyber breach?
  • It seems like insurance premiums will rise as cybersecurity risks increase. What can be done to reduce costs?

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