Systemic Cyber Risk: Is it Insurable?
Critical systems carry points of failure. Welcome to systemic risk.
The Cybersecurity and Infrastructure Security Agency identifies 16 topics considered massive systemic risks.
At its core, aggregation risk triggers multiple policies.
Ransomware losses have spurred reinsurers to reconsider their total exposures.
Exposures can range from possible to implausible, with a mix of behavioral uncertainty.
Insurers are gathering more information and addressing limits. This can lead to higher prices and longer waiting times.
Tech providers and some startups are developing tools for scanning, identifying and evaluating systems for potential points of failure.
Many cyber risks have been covered with only a vague understanding of the factors that support pricing and risk differentiation.
Reliable modeling begins with defining and refining the data required.
Understanding the data of a particular risk opens a path to anticipating secondary effects.
