An Analysis of Cyber Insurance

by Mary W
Sept. 28, 2017 1 comment 3 minute read Management insurance management
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Synopsis

This research we discuss what cyber insurance entails. including risks that lead to breaches, its importance, what the activity is all about and the application of Cyber Insurance.

What is cyber insurance?

This refers to a product of insurance that takes care of individuals and businesses regarding cyber protection. This protection of the groups in question does not apply to everyone but to those who are exposed and prone to risks that come from the internet. These risks are what gets protected because they can be very effective to the people and businesses that deal with them and especially toes that are related to information and technology as expressed in figure 4.3 below.

Figure 4.3

The insurance products are not traditional in any way and the exemption from the same to enhance a clear cover to the activities and infrastructure that relate to risks of the internet. There are different types of covers that are given to various groups of people and business regarding the protection, but they are not just in the same way. Some are relative to others while others are absolutely different just like show in figure4.4.

Figure 4.4

The covering and protection of this insurance policy guards the interests of the business of individuals on different ways. Some of the covers may include protection from hacking, protection from theft, protection from extortion, protection from destruction, attacks, and offering of security audit among other great services that are offered. Errors and all probable commissions that can be effective are also catered for.

It does not just exist but offers customers the required protection if need be. For an individual or business to subscribe to this kind of insurance, there are some factors that they first put into active consideration before they can even have it as their security and cover. Some of these factors are risks that are naturally engineered in the world of information technology. Failure to adhere to such risks will make an individual or business to experience more losses. There is, therefore, need to have it implemented. Some of such risks that lead to the subscription of cybersecurity are discussed in details.

Failure to safeguard data. It is not easy to detect whether data is safeguarded in the right way or not without the use of cybersecurity. This risk will make an individual or business to have their confidential data exposed to all forms of hackers. With cybersecurity, it thus becomes easy to be comfortable with confidential data. The policies of cybersecurity acts a protection, and they keep intruders away because of the consequences that may follow an arrest.

Loss and destruction of data. No individual, business or company would want to lose their data. They would not wish to have their information destroyed. To avoid this risk, they have to take cyber insurance as the only option if they have to be safe.

Hacking. Following the harsh policies applied in the firms of cyber insurance, it is not possible to have hackers trying to distort a protected entity. The guard and consequences that are put in grip just keep them off. This hacking is displayed as a notification in the social networks as in figure 4.5.

Figure 4.5

Importance of cybersecurity.

Several advantages are associated with cyber insurance. These advantages can only be enjoyed by those who take it as an option in as much as they are connected to businesses and activities related to information technology. Some of the important benefits of cyber insurance are discussed in details below.

Protection from theft.

Everyone who subscribes to cyber insurance has their information secured from any form of theft. The policy ensures that the information of groups and individuals that they serve is safeguarded and kept away from intruders. The security is through encryption as in figure 4.6

figure 4.6

Theft of data is one of the major problems that can face a business plan. For business plans and ideas, several things can bring an abrupt end. One of them is theft. If hacking can happen and a business idea gets stolen while its’ not yet ripe or without copyright, the consequences are dire. They may not be able to claim it. To ensure that this does not happen, cyber security serves this purpose.

Protection from the destruction of data.

Data can be destroyed even without the awareness of the owners. Such things as destruction may happen from time to and especially when a hacking activity takes place. To ensure that this hacking does not take place the protection policy becomes cyber insurance. Hacking may be done, and the destruction of information can lead to the destruction of evidence that is a great loss. Protection from such destruction is displayed in figure 4.7

Figure 4.7

Protection form errors or omissions.

Omissions are human mistakes that happen from time to time. There are different ways in which an error can be destructive and thus destroying the whole initial motive. If the way of cyber insurance did not safeguard data, it could become very hard to have the initially intended motive. To have the protection from such mistakes, it, therefore, becomes very important to have data safeguarded through cyber insurance as in figure 4.8.

Conclusion.

In conclusion, this security policy is a very important step to people and businesses that deal with data in information and technology. There are ways to which a person gets protected, and this is very important. It ensures that the covering of such entities is made manifest. It is both wise and informative to have the protection of cyber insurance if such policies that favor customers are put into consideration. If an individual requires such cover and protection of data and property then it is important to have it as an alternative.

References.

Wang, S. (2017). Executive Summary–‘Integrated Framework for Information Security Investment and Cyber Insurance’. Niyato, D., Hoang, D. T., Wang, P., & Han, Z. (2017). Cyber Insurance for Plug-In Electric Vehicle Charging in Vehicle-to-Grid Systems. IEEE Network, 31(2), 38-46. Chaisiri, S., Ko, R. K., & Niyato, D. (2015, August). A joint optimization approach to security-as-a-service allocation and cyber insurance management. In Trustcom/BigDataSE/ISPA, 2015 IEEE (Vol. 1, pp. 426-433). IEEE. Low, P. (2017). Insuring against cyber-attacks. Computer Fraud & Security, 2017(4), 18-20.

Published with the express permission of the author.

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2flash 4 months, 3 weeks ago

You can see that this piece is really well documented! I really like the pictures as well - they reminded me a bit of Matrix... which is not for from the reality... or the reality is the Matrix? :) hahah

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