A Coordinated Defense to Cyber Risk
The exposure is multifaceted, varies from business to business, and continues to evolve. In addition to purchasing cyber insurance, companies can bolster their defenses against this risk by conducting targeted risk assessments and implementing appropriate security controls — but the challenge lies in identifying which security programs and controls an organization needs most, and which vendors provide the best service.
All companies, but especially small- to medium-sized businesses with more limited resources, want to see improvement of their risk profiles translate into discounted insurance premiums.
However, lack of alignment between IT security vendors and underwriters can make that connection difficult to attain, minimizing the value of loss control services. Current underwriting processes typically don’t allow underwriters the opportunity to ask insureds many questions about their security and privacy improvements, and vendors often view insurance as a separate offering, if not an afterthought.
“Part of the challenge has been that you have two different industries — IT security and insurance — working in siloes to address a singular risk challenge. Naturally, security professionals think about risk and control mechanisms differently than insurance professionals, and speak different languages,” said Tom Kang, enterprise cyber underwriting & product lead at The Hartford.
“We believe aligning the solutions — between security and insurance — and providing the right incentives to our clients can make a real difference. A fully integrated solution, with discounts for the service and the insurance, can offer something compelling and help improve cyber risk for our clients.”
It’s time to start thinking about cyber risk in a coordinated, cohesive fashion.
To learn more about The Hartford, please visit their website.