For a sustainable and sound cyber insurance market, Commercial Insurance Brokers will need to promote and facilitate pre-application cyber protection and compliance to Insureds.
LAS VEGAS (PRWEB)
September 21, 2022
FCI, an MSSP focused on Financial Services, is eager to share a new Pre & Post Breach Risk Management Model that synchronizes post-breach forensics and eDiscovery to pre-breach security assessments, cyber programs, controls, and compliance. This pre-breach preparedness improves a company’s ability to reduce claim scope, timing, and costs.
In May 2022, FitchRatings reported that “Cyber claims have risen by 100% annually in the past three years. As a result, claims closed with payment grew by 200% annually over the same period.” There’s a clear, urgent need for change to handle the increasing sophistication of cyber threats and frequency of attacks. In addition, ongoing regulatory requirements have created a shifting landscape for the Insurance Industry. The cost of claims and forensics post-breach is not sustainable as denials increase and premiums rise to compensate.
Brian Edelman, FCI’s CEO states, “For a sustainable and sound cyber insurance market, Commercial Insurance Brokers will need to promote and facilitate pre-application cyber protection and compliance to Insureds. Along with that, Cyber Insurers and Reinsurers must tighten up pre and post-breach cyber ecosystem relationships and processes. Linking and bridging pre and post-breach areas will lay a strong foundation for success and directly impact loss ratios.”
NYDFS’ Insurance Circular Letter No. 2, 2021, further supports this type of model by mentioning that key stakeholders in the Insurance value chain will need to “Account for the systemic risk that occurs when a widespread cyber incident damages many insureds at the same time, potentially swamping insurers with massive losses.” They followed that by saying, “Insurers that don’t effectively measure the risk of their insureds also risk insuring organizations that use cyber insurance as a substitute for improving cybersecurity.”
Responsibilities and Elements of FCI’s Pre & Post Breach Cyber Insurance Model Include:
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Carriers & Brokers: Adopt Pre & Post Breach Risk Management Model - Brokers: Promote & Facilitate Pre-Application Cyber Protection & Compliance to Insureds
- Insureds: Commit to Protection & Compliance
- Pre-Breach Managed Security Service Providers (MSSPs): Enforce & Evidence Insureds’ Protection & Compliance
- Post Breach Firms: Perform eDiscovery & Forensics
- Carriers & Brokers: Experience Reduction in Claims which Improves Loss Ratios
About FCI Cyber
FCI is a NIST-Based Managed Security Service Provider (MSSP) offering Cybersecurity Compliance Enablement Technologies & Services to CISOs and security personnel of Financial Services organizations with prescriptive cybersecurity regulatory requirements. FCI blends best-of-breed technologies, cybersecurity best practices, expertise, and innovation to perform Security Assessments and deliver cloud-based Managed Endpoint and Network Protection. http://www.fcicyber.com
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