The Chief Executive of insurance company Zurich, Mario Greco, recently said:
“What will become uninsurable is going to be cyber,” he said. “What if someone takes control of vital parts of our infrastructure, the consequences of that?”Mario Greco, Zurich
In the same article is Lloyds insurance looking for exceptions in Cyber insurance for those attacks that are state based actors, which is a difficult thing to prove with certainty.
All in all, some reasons that Cyber Insurance exists is to cover from a risk perspective the opportunity of spending less on insurance premiums (and having financial recompense to cover operational costs) that having competent processes around software maintenance to code securely to start with, detect threats quickly, and maintain (patch/update) rapidly over time.
The structure of most organisations to have a “support team” who are responsible for an ever growing list of digital solutions, goaled on cost minimisation, and not measured against the amount of maintenance actions per solutions operated.
Its one of the reasons I like the siloed approach of DevOps and Service Teams. Scope is contained to one (or a small number of similar) solution(s). Same tech base, same skill set. With a remit to have observability, metrics and focus on one solution, the team can go deep on full-stack maintenance, focusing on a job well done, rather than a system that is just turned on.
It’s the difference between a grand painter, and a photocopier. Both make images; and for some low-value solutions, perhaps a photocopier is all they are worth investing in from a risk-reward perspective. But for those solutions that are the digital-life-blood of an organisation, the differentiator to competitors, and those that have the biggest end-customer impact, then perhaps they need a more appropriate level of operational investment — as part of the digital solution, not as a separate cost centre that can be seen to be minimised or eradicated.
If Cyber insurance goes end-of-life as a product in the insurance industry, then the war on talent, the focus to find those artisans who can adequately provide that , increases. All companies want the smartest people, as one smarter person may be more cost effective than 3 average engineers.