Cyber insurance of information systems: Security and privacy cyber insurance contracts for ICT and helathcare organizations

Nowadays, more-and-more aspects of our daily activities are digitalized. Data and assets in the cyber-space, both for individuals and organizations, must be safeguarded. Thus, the insurance sector must face the challenge of digital transformation in the 5G era with the right set of tools. In this paper, we present CyberSure-an insurance framework for information systems. CyberSure investigates the interplay between certification, risk management, and insurance of cyber processes. It promotes continuous monitoring as the new building block for cyber insurance in order to overcome the current obstacles of identifying in real-time contractual violations by the insured party and receiving early warning notifications prior the violation. Lightweight monitoring modules capture the status of the operating components and send data to the CyberSure backend system which performs the core decision making. Therefore, an insured system is certified dynamically, with the risk and insurance perspectives being evaluated at runtime as the system operation evolves. As new data become available, the risk management and the insurance policies are adjusted and fine-tuned. When an incident occurs, the insurance company possesses adequate information to assess the situation fast, estimate accurately the level of a potential loss, and decrease the required period for compensating the insured customer. The framework is applied in the ICT and healthcare domains, assessing the system of medium-size organizations. GDPR implications are also considered with the overall setting being effective and scalable

Cyber insurance

Kibernetsko zavarovanje predstavlja relativno nov produkt, katerega razvoj je bil, zaradi vseprisotnega razvoja tehnike in pametnih naprav, neizbežen. Zaradi inherentnih lastnosti kibernetskega tveganja, ki ga s kibernetskim zavarovanjem zavarujemo (njegove sistemskosti, korelacije, neopredmetenosti in dinamičnosti), zavarovalnice niso naklonjene zagotavljanju širokega kritja. Prav tako nadaljnji razvoj trga kibernetskih zavarovanj preprečujeta odsotnost standardizacije ter enotnih definicij pojmov v zavarovalnih pogodbah. To velja tako za samostojno kibernetsko zavarovanje, kot za pasivna kibernetska zavarovanja, med katerimi je najpogostejše zavarovanje splošne odgovornosti. Predstavljeni izbrani primeri iz ameriške sodne prakse potrjujejo zmedo na trgu kibernetskih zavarovanj in kažejo na to, da je obseg kritja v največji meri odvisen od vsakokratnih konkretnih okoliščin primera in besedila zavarovalne pogodbe, predvsem izključitvenih klavzul. Za nadaljnji razvoj kibernetskega zavarovanja je pomembno sodelovanje med državo in zavarovalnicami, ki bi morale družno delovati v smeri čim večjega sklepanja kibernetskih zavarovanj s širokim kritjem, saj preventivni ukrepi, ki jih ob sklenitvi zavarovanja od zavarovalca zahtevajo zavarovalnice, pozitivno vplivajo na kibernetsko varnost kot javno dobrino.Cyber insurance is a relatively new product whose development was inevitable due to the omnipresent development of technology and smart devices. Because of the inherent characteristics of cyber risk, which is insured with cyber insurance (it is systemic, correlated, intangible and dynamic), the insurance companies are not inclined to providing a wide coverage. Lack of standardization and uniform definitions of terms in insurance contracts prevent further development of cyber insurance market. This is the case in both, stand alone cyber insurance contracts and non-affirmative insurance contracts, among which commercial general liability contracts are the most common. The selected cases from the US case law confirm confusion in the cyber insurance market and show that, to a large extent, the coverage depends on the particular circumstances of each case and the wording of insurance contract, especially exclusion clauses. For further development of cyber insurance, cooperation between states and insurance companies is important. They should work together to maximize the number of cyber insurance contracts with broader coverage, because the preventive measures, which the insurance company imposes on the insured when concluding the contract, have a positive impact on cyber security as a public good

Dynamic assessment of cyber threats in the field of insurance

The area of digital technologies is currently the subject of many cyber threats, the frequency of which is increasing. One of the areas of cyber security is also the creation of models and estimates of the process of cyber threats and their possible financial impacts. However, some studies show that cyber-threat assessment to identify potential financial impacts for organizations is a very challenging process. A relatively large problem here is the detection of scenarios of cyber threats and their expression in time. This paper focuses on the design of an algorithm that can be applied to the field of cyber-threat assessment in order to express the financial impacts. The study is based on an in-depth analysis of the insurance industry. The results obtained in our research show the importance of the time perspective for determining the potential financial impacts of cyber threats for the field of insurance.Univerzita Tomáše Bati ve Zlíně: RVO/FLKŘ/2022/03Tomas Bata University in Zlin; [RVO/FLKR/2022/03

When to Treat Security Risks with Cyber Insurance

Transferring security risk to a third party through cyber insurance is an unfamiliar playing field for a lot of organisations, and therefore many hesitate to make such investments. Indeed, there is a general need for affordable and practical ways of performing risk quantification when determining risk treatment options. To address this concern, we propose a lightweight, data-driven approach for organisations to evaluate their own need for cyber insurance. A generic risk model, populated with available industry averages, is used as a starting point. Individual organisations can instantiate this model to obtain a risk profile for themselves related to relevant cyber threats. The risk profile is then used together with a cyber insurance profile to estimate the benefit and as a basis for comparing offers from different insurance providers.publishedVersio

When to Treat Security Risks with Cyber Insurance

Transferring security risk to a third party through cyber insurance is an unfamiliar playing field for a lot of organisations, and therefore many hesitate to make such investments. Indeed, there is a general need for affordable and practical ways of performing risk quantification when determining risk treatment options. To address this concern, we propose a lightweight, data-driven approach for organisations to evaluate their own need for cyber insurance. A generic risk model, populated with available industry averages, is used as a starting point. Individual organisations can instantiate this model to obtain a risk profile for themselves related to relevant cyber threats. The risk profile is then used together with a cyber insurance profile to estimate the benefit and as a basis for comparing offers from different insurance providers.acceptedVersio

Strategies for Cybercrime Prevention in Information Technology Businesses

Cybercrime continues to be a devastating phenomenon, impacting individuals and businesses across the globe. Information technology (IT) businesses need solutions to defend and secure their data and networks from cyberattacks. Grounded in general systems theory and transformational leadership theory, the purpose of this qualitative multiple case study was to explore strategies IT business leaders use to protect their systems from a cyberattack. The participants included six IT business leaders with experience in cybersecurity or system security in the Midlands region of South Carolina. Data were collected using semistructured interviews and reviews of government standards documents; data were analyzed using thematic analysis. Three themes emerged from the study: (a) cybercrime prevention strategy; (b) cybersecurity awareness, training, and education; and (c) effective leadership. A key recommendation is for IT business leaders to ensure employees are current on cybersecurity awareness and defense techniques through regular training and education, use third-party vendors that are subject matter experts where they lack talent, and develop leaders with a transformational mindset. The implications for positive social change include the potential for IT business leaders and employees to become more proactive in learning and implementing effective cybercrime prevention strategies to keep their businesses profitable and support the needs of stakeholders and clients

When to Treat Security Risks with Cyber Insurance

Transferring security risk to a third party through cyber insurance is an unfamiliar playing field for a lot of organisations, and therefore many hesitate to make such investments. Indeed, there is a general need for affordable and practical ways of performing risk quantification when determining risk treatment options. To address this concern, we propose a lightweight, data-driven approach for organisations to evaluate their own need for cyber insurance. A generic risk model, populated with available industry averages, is used as a starting point. Individual organisations can instantiate this model to obtain a risk profile for themselves related to relevant cyber threats. The risk profile is then used together with a cyber insurance profile to estimate the benefit and as a basis for comparing offers from different insurance providers

When to Treat Security Risks with Cyber Insurance

Transferring security risk to a third party through cyber insurance is an unfamiliar playing field for a lot of organisations, and therefore many hesitate to make such investments. Indeed, there is a general need for affordable and practical ways of performing risk quantification when determining risk treatment options. To address this concern, we propose a lightweight, data-driven approach for organisations to evaluate their own need for cyber insurance. A generic risk model, populated with available industry averages, is used as a starting point. Individual organisations can instantiate this model to obtain a risk profile for themselves related to relevant cyber threats. The risk profile is then used together with a cyber insurance profile to estimate the benefit and as a basis for comparing offers from different insurance providers.acceptedVersio

When to Treat Security Risks with Cyber Insurance

Transferring security risk to a third party through cyber insurance is an unfamiliar playing field for a lot of organisations, and therefore many hesitate to make such investments. Indeed, there is a general need for affordable and practical ways of performing risk quantification when determining risk treatment options. To address this concern, we propose a lightweight, data-driven approach for organisations to evaluate their own need for cyber insurance. A generic risk model, populated with available industry averages, is used as a starting point. Individual organisations can instantiate this model to obtain a risk profile for themselves related to relevant cyber threats. The risk profile is then used together with a cyber insurance profile to estimate the benefit and as a basis for comparing offers from different insurance providers.publishedVersio