Cyber Insurance 2^nd Edition

Table of Contents

Chapter 1:  Identifying Cyber Risk for Insurance	1
Debit & Credit Card Security Measures Cover Losses	4
Interest in Cyber Insurance Grows	4
Who is Vulnerable to Cyber Events?	6
Insurers Recommend Freezing New Credit to Prevent Fraud Losses	6
SIRF is Currently Uninsurable	8
News From the Insurance Information Institute	9
Cyber Crime Can Equate into Cyber Terrorism	13
Insurance & Definitions Regarding “Act of War”	14
Insuring Clouds for Data Storage	15
The Hope of a More Secure System	16
Banks Must Act to Prevent Losses	17
Even Chip-and-PIN Cards Facing Fraud & Loss	18
Insurance Industry’s Cyber Reports	19
Chapter 2:  Growth of Cyber Risk	20
The question is: how did we get to this point?	20
December 1969	21
June 1982	21
November 1988	19
March & April 1994	21
June 1997 through April-May 2007	22
June 2007 through April 2010	23
June 2010 through May 2012	24
May 2012 through July 2014	25
November 14 through July 2020	26
August 2020 through September 2020	27
October 2020 through December 2020	28
January & February 2021	29
March & April 2021	30
Mary & June 2021	31
Who is Vulnerable?	32
The Future of Cyber Security Risks & Coverages	34
Botnet	35
Determining Who Needs Coverage	35
Cyber Forensics	36
Hacktivists	36
Insurance Considers Current Risks	37
Insurers Can Experience Risk, as well as Analyze It	38
We are a Connected World	38
Effective Risk Management Includes Insurance	39
Risk Management is Ongoing	40
Shadow IT	41
API	42
Industry Best Practices	44
Insurers May Require Vetting of Third-Party Vendors	44
Insurers Want Analytical Data, so Keep Track	45
Working with Insurers	45
Insurance Market Exists in Cyber Coverage	46
Overlapping Coverage Issues	47
War & Terrorism Policy Exclusion	48
Chapter 3:  Cyber Insurance Policy Provisions	51
Defining Cyber War & Terrorism, Separate from Non-Cyber Events	51
Types of Liability Policies	52
Manifestation Theory	53
Triple Trigger Theory	53
Available third-party coverages	54
The Policy	55
Cyber Security Liability Coverage Form	56
I. INSURING AGREEMENTS	56
II. COVERED CAUSES OF LOSS	58
III. DEFINITIONS	59
IV. EXCLUSIONS	65
V. YOU AND YOUR ORGANIZATION	67
VI. TERRITORY	67
VII. POLICY TERMS AND CONDITIONS	67
Chapter 4:  Cyber Risk Management	75
Terrorism Risk Insurance Program Reauthorization Act	75
Personal Privacy	76
Recommendations for Placing Cyber Insurance	77
The Challenge of Risk Management	80
Cloud Vendors, Data Storage, & Cyber Policies	81
The Legal Side of Cyber Breaches	84
Commercial Policies vs. Cyber Liability Policies	87
NAIC Principles for Effective Cybersecurity: Insurance Regulatory Guidance	88
Data Security & Breach Notification Act of 2015	91
Cyber Security Bill of Rights	92
Cybersecurity Bill of Rights for Insurance Consumers	93
Chapter 5:  Emerging Future of Cyber Risks	95
The Future Challenges Insurers	96
Security Intelligence	97
Altered Data	100
The Changing Face of Crime Means New Insuring Requirements	100
Brick Attacks	102
Biometric Security	102
Genetic Testing	103
Smart Meters	103
Distance Crime Changes Insurance Picture	104
Project 2020	104
Cyber Crime Insurance Risk	106
Risk-Based & Control-Based Insurance Models	107
Types of Cyber Criminal Threats	108
When Cyber Crime Evolves into Potentially Insured Physical Threats	108
Creation of Intelligent Computers	109
Multiple Identities	109
The Insurer’s Role	110
CIO’s consider the following	111

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