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What is Wrong with Cyberinsurance?
by Brent Kirkpatrick
(Date Published: 9/10/2018.)
Cyberinsurance does not provide solutions. Instead, it is a method to pay for a big, unplanned event. A recent article in the Wall Street Journal states that many cities are insuring against cyberattack. Our society would be better off, if we invested the premiums into developing solutions.
Cyberinsurance is designed to amortize the cost of a cyberattack across multiple organizations. Any organization that is concerned about the possibility of cyberattack pays a premium. The number of organizations that are actually attacked is a fraction of the number that are concerned. This means that multiple premiums can be used to pay for the cost of a single cyberattack.
Cyberinsurance is only a method of paying for a rare event. Cyberinsurance does not provide solutions to cyberattack. An insurance company collects premiums and leave them sitting in a bank account until they have to pay out. The premiums are useless until they are paid out.
Instead, we could invest in developing actual solutions to cyberattack. This would require investing in research and development. We would be investing in our future.
Please contact us at Intrepid Net Computing if you have questions about solutions to cyberattacks.
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Scott Calvert and Jon Kamp. "Big cities insure against cyberattacks." Wall Street Journal. Sept. 7, 2018.