Key Points:
Cyber risk insurance policies are structured to remedy
the inadequacies of traditional insurance by dealing with cyber
risks specifically and broadly.
We've already looked at
the growth of cyber risks – including some varieties of
cyber-attacks, their impacts and the changing legislative landscape
in the context of data breaches. We now turn to the insurance
that is available to manage the risks posed by our increased use of
information technology.
The need for bespoke cyber insurance for cyber
risk
In the face of growing e-commerce and cyber-attacks, costs to
address information breaches, and increasing legislation
(particularly in the area of privacy law), it is not surprising
that attention is turning to insurance as a tool for managing cyber
risks. Insurance policies for cyber risk have been used for some
years in the USA, but are gradually gaining exposure in
Australia.
