1 Comment

Insurance companies will either stop offering cyber insurance or they will continually offer cyber insurance with lower limits of coverage and tighter terms, conditions, and restrictions.

Insurance carriers do not have a mandate to offer coverage for cyber risks regardless of how many people or businesses continue to need cyber insurance. Insurance carriers do have a fiduciary responsibility to generate profit from whatever coverage they sell whether for cyber risks or other risks. Profit being defined as combined ratios under 100%.

Eventually, which may be sooner than later, the Federal Government will need to provide the financial backstop for companies that have been cyber-attacked.

Always keep in mind that just because a risk exists never means that insurers must provide coverage for the risk.

It’s never a matter of morality or ethics. It is always a matter of carriers generating profit.

Expand full comment