Navigating Cyber Insurance: Key Insights for C-Level Decision Makers

Introduction

In a world dominated by digital landscapes, the importance of cybersecurity has surged to the forefront of business considerations. Cyber threats and data breaches have become a common concern for companies of all sizes, prompting a critical need for protection through cyber insurance. We sat down with Grant Robertson from Donaldson Brown Insurance, a leading New Zealand insurer, to delve into the complexities and vital aspects of cyber insurance that C-Level decision makers and CFOs should be well-versed in.

Understanding the Landscape

Grant Robertson is a seasoned expert at Donaldson Brown, an insurance advisory and broking firm. He emphasises that the landscape has evolved significantly; insurance companies now demand stringent controls before offering cyber insurance coverage. This shift is driven by the growing impact of cyber threats and the need to mitigate potential risks.

Key Points for Obtaining Cyber Insurance

Robertson outlines key requisites for obtaining cyber insurance coverage. Multi-factor authentication (MFA) is a common requirement, but specifics may vary among insurers. Ongoing security training, business continuity plans, disaster recovery plans, and patch management are also essential components. Understanding the scope of required controls is crucial, and each company’s risk profile is evaluated uniquely.

Role of a Security Partner

Cyber risk management and insurance services play a pivotal role in bridging the gap between clients and insurers. Robertson emphasises that insurers assess a company’s risk based on external data and risk modelling. Working with a security partner to take a proactive approach by conducting in-depth assessments, identifying vulnerabilities, and suggesting improvements before approaching insurers and ultimately fixing vulnerabilities prior to engagement with insurers can significantly improve the assessment process.

The Process Unveiled

Robertson sheds light on the journey from security consultation to policy implementation. Companies seeking insurance are required to answer risk control questions and provide necessary information. The security partner team performs comprehensive assessments, identifying weaknesses and vulnerabilities that insurers might not catch. This consultative approach serves to fortify a company’s security measures and elevate its risk assessment.

Quick Tips for C-Level Decision Makers and CFOs

Holistic Approach: Robertson advises companies to embrace a holistic approach to cybersecurity. Understanding your risk profile, implementing necessary controls, and collaborating with experts help mitigate vulnerabilities.
Risk Tolerance and Perception: Cyber risk tolerance varies, but awareness is increasing due to media exposure. Organisations must assess their unique risk appetite and view cyber insurance as a strategic investment.
Proactive Cyber Hygiene: Cyber insurance is no longer just a box to tick. Proactively implementing controls and assessing vulnerabilities can enhance risk assessment and lead to more favourable insurance terms.
Quality of Advisor Matters: Choose a specialised advisor who can provide personalised guidance and engage in meaningful conversations about risk controls, rather than just completing forms.

In a digital age fraught with risks, the insights shared by Grant Robertson underscore the critical synergy between cybersecurity, risk management, and cyber insurance. By understanding the evolving landscape, embracing proactive cybersecurity measures, and seeking guidance from experts, C-Level decision makers can navigate the complex world of cyber insurance with confidence. Protecting your digital assets has never been more crucial, and with the right knowledge, you can ensure that your organisation is well-prepared to face any cyber challenge that comes its way.