Decrypting cyber insurance: A practical framework for organisations

Cyber security is an emerging risk area for the insurance industry. The threat of cyber-attacks is increasing and so too is the demand for cyber insurance. An attack can often result in major disruptions to service and business. It can lead to the theft of personal information from customers, while causing irreversible damage to a business' reputation.

Given the potential to trigger millions of dollars in losses, it's prudent for businesses to consider cyber insurance as a means of mitigating the risks of hacking, data-encryption, phishing, scamming and data breaches. However, relative to Comprehensive General Liability (CGL) and Directors and Officers (D&O) insurance policies, the cyber insurance industry is in its infancy, and the extent of coverage offered by insurers varies greatly.