Cyber Insurance

Table of Contents

 

Chapter 1:  Identifying Cyber Risk for Insurance

1

     Debit & Credit Card Security Measures Cover Losses

2

     Interest in Cyber Insurance Grows

3

     Who is Vulnerable to Cyber Events?

4

     Freezing New Credit to Prevent Fraud Losses

4

     SIRF is Currently Uninsurable

6

     News From the Insurance Information Institute

7

     Cyber Crime Can Equate into Cyber Terrorism

10

     Insurance & Definitions Regarding “Act of War”

11

     Insuring Clouds for Data Storage

12

     The Hope of a More Secure System

13

     Banks Must Act to Prevent Losses

14

     Even Chip-and-PIN Cards Facing Fraud & Loss

14

     Insurance Industry’s Cyber Reports

15

Chapter 2:  Growth of Cyber Risk

16

     The question is: how did we get to this point?

16

     Chart 1969-1988

17

     Chart 1994-2003

18

     Chart 2003-2007

19

     Chart 2008-2010

20

     Chart 2010-2011

21

     Chart 2012-2013

22

     Chart 2013-2014

23

     Chart 2015

24

     The Future of Cyber Security Risks & Coverages

26

       Botnet

27

     Determining Who Needs Coverage

28

     Cyber Forensics

28

     Hacktivists

29

     Insurance Considers Current Risks

29

     Even Insurers Experience Risk

30

     We are a Connected World

31

     Effective Risk Management Includes Insurance

31

     Risk Management is Ongoing

32

       Shadow IT

34

     Industry Best Practices

36

     Insurers May Require Vetting of Third-Party Vendors

36

     Insurers Want Analytical Data, so Keep Track

37

     Working with Insurers

38

     Insurance Market Exists in Cyber Coverage

38

     Overlapping Coverage Issues

39

     War & Terrorism Policy Exclusion

40

Chapter 3:  Cyber Insurance Policy Provisions

43

     Defining Cyber War & Terrorism, Separate from Non-Cyber Events

43

     Types of Liability Policies

44

       Manifestation Theory

45

       Triple Trigger Theory

45

       Available third party coverages

46

     The Policy

47

     Cyber Security Liability Coverage Form

48

        I. INSURING AGREEMENTS

48

        II. COVERED CAUSES OF LOSS

50

       III. DEFINITIONS

51

       IV. EXCLUSIONS

57

       V. YOU AND YOUR ORGANIZATION

59

       VI. TERRITORY

59

       VII. POLICY TERMS AND CONDITIONS

59

Chapter 4:  Cyber Risk Management

67

     Terrorism Risk Insurance Program Reauthorization Act

67

     Personal Privacy

68

     Recommendations for Placing Cyber Insurance

68

     The Challenge of Risk Management

71

     Cloud Vendors, Data Storage, & Cyber Policies

73

     The Legal Side of Cyber Breaches

76

     Commercial Policies vs. Cyber Liability Policies

78

     NAIC Principles for Effective Cybersecurity: Insurance Regulatory Guidance

80

     Data Security & Breach Notification Act of 2015

83

     Cyber Security Bill of Rights

84

     Cybersecurity Bill of Rights for Insurance Consumers

85

Chapter 5:  Emerging Future of Cyber Risks

87

     The Future Challenges Insurers

88

     Security Intelligence

89

     Altered Data

92

     The Changing Face of Crime Means New Insuring Requirements

92

     Brick Attacks

94

     Biometric Security

94

     Genetic Testing

94

     Smart Meters

95

     Distance Crime Changes Insurance Picture

95

     Project 2020

95

     Cyber Crime Insurance Risk

98

     Risk-Based & Control-Based Insurance Models

98

     Types of Cyber Criminal Threats

99

     When Cyber Crime Evolves into Potentially Insured Physical Threats

99

     Creation of Intelligent Computers

100

     Multiple Identities

100

     The Insurer’s Role

101

       CIO’s consider the following

102

 

United Insurance Educators, Inc.

8213 - 352nd Street East

Eatonville, WA.  98328