Home > Property & Casualty > Insurance industry leads the way for cyber best practices

Insurance industry leads the way for cyber best practices

April 27, 2015

computers_techIt was reported earlier this month in the Wall Street Journal that many Corporate Information Security Officers (CISOs) are turning to the insurance sector for assistance and guidance when it comes to understanding cyber security.

Normally late to the party, insurance carriers tend to thoroughly examine years and years of loss experience in order for actuaries to set the rates for new areas of risk. But it is not the case when it comes to the rapidly developing area of cyber threats. Instead it is the insurance sector that many are turning to for guidance on how to deal with the uncertainty of cyber security.

Unless an industry is heavily regulated like healthcare, there are very few standards that exist when it comes to privacy. This is leading many to seek standards to ‘help strengthen defenses, improve risk management, and make it easier to defend against accusations of negligence in the event of a major breach.’

As hacking attacks and negligence continues to evolve and becomes among the top concerns for many companies, it often becomes a companies’ insurance partners who aids in the educating of the leadership teams on the perils and potential costs of a cyber-event. Using a system similar to the NIST Framework, insurance companies are now evaluating the risk that firms may face.

Be sure to check out WGA’s Cyber Risk Hub, an online platform for all of the insurance industry, designed to be a resource to provide a better understanding of the increasing risks resulting from breaches of information and network security.

About the Author

Susan Forbes is the Chief Innovation Officer for WGA. She is responsible for WGA’s innovation leadership, communication and collaboration focused on three areas: new client products and services, client-facing technology services, and operating efficiencies.

617.646.0282| SForbes@wgains.com | Susan on LinkedIn | Follow on Twitter @WGAinnovation