Cyber Insurance Is No Panacea
A panel on cyber insurance for the most part panned the idea, saying that the legal wording of policies, exclusions and other factors tend to make it a pricey policy that may not even provide the expected benefits in the event of a data breach."I’ve never been a fan of insurance; getting the right coverage is always an uphill fight," said Winn Schwartau, CEO of The Security Awareness Company. “We’ve been at war, but acts of nation-states are excluded by insurance, as are acts of war and acts of God. Is ISIS a nation-state?”
Yet Jody Schwartz, direct of IT security and risk for the Rewards Network, pointed out that cyber insurance enabled Target to recover about 45 percent of its direct losses due to its high-profile breach. So cyber insurance does enable companies to recover some of their losses, even if there is some fighting over exclusions, the definition of what is covered and other issues.full article
