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Cyber Insurance – its origination, development, current state and progress

Daniel Carr

This talk will provide a brief overview of cyber insurance – its origination, development, current state and how I believe this will, and should, progress – and the ‘underwriting’ process, both in the wider market and in my business (including where these may or may not differ).

I would then like to explore with the group the respective views of various stakeholders in how insurance can be better used to manage cyber risk across society, as well as where the challenges and tensions lie that may prohibit certain objectives from being ultimately achieved – either through a lack of understanding or a misalignment of goals.

Finally, I wish to challenge my own thesis that given the construct of insurance and that it applies to acts in the future, often over a 12 month period,  it must be somewhat predictive. Furthermore, explore my view that ultimately for the emerging risks addressed by cyber insurance the root cause of such events largely (albeit not exclusively) stem from geopolitical unrest.

This latter topic is the area I am most interested in exploring, particularly how geopolitical tensions that directly or indirectly impact cyberspace can be observed, measured, semi-quantified and modelled. There is usually a catalyst to destructive and large-scale disruptive cyber events, and it’s clearly not all hooded teenagers in bedrooms. In essence, I view ‘cyber risk’ today as merely another manifestation of the cold war and a game of brinksmanship; albeit with somewhat more anonymity on offer to perpetrators. It’s a blend of both espionage and asymmetric warfare – which is more accessible to the average member of society today than at any other point in history. Developing a taxonomy and language to consistently observe and describe these tensions provides a framework whereby we can assess their interrelationships and look to better predict (and ultimately control) the complex nature of cyber conflicts.

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