Cyberclaims and litigation against insurance professionals
Earlier this year, Westlaw (Thomson Reuters) published an article I wrote. In case you missed it, here are some excerpts.
Technology such as cloud computing, machine learning, "internet of things" and autonomous vehicles are changing society. Along with these rapid societal changes, cyberthreats are evolving more quickly than chief information security officers can deploy systems to anticipate and prevent breaches. While these breaches were once considered threats only for larger corporations, they since have become problems for smaller companies and individuals as well.
This increased risk of cyberevents presents a fertile market for the insurance industry to create new products. Insurance professionals who aim to serve the needs of their corporate clients (whether large or small) must market and provide advice about these new products.
The numerous vectors for cyberattacks — and the uncertainty surrounding how these new insurance products will respond to cyberclaims — has increased the risk of litigation against insurance professionals. . . .
Cyberevents in which thousands of people have their personally identifiable information stolen (including events involving Equifax, Home Depot, Target, Yahoo) garner extensive media coverage. Less attention is paid to attacks carried out using other vectors, like ransomware, which prevents a company from accessing information unless a ransom is paid.
In 2017, the WannaCry and Petya ransomware attacks impacted thousands of computers and blocked user access to data systems unless and until users made ransom payments. And ransomware attacks have already been reported in 2018. . . .
These types of cyberattacks cause business interruptions that could lead to losses amounting to hundreds of thousands of dollars. While larger corporations may survive such an attack, smaller uninsured companies may be forced to shutter.
For the complete article, click here.