Cyber Security: The challenge for insurers and practices alike

Caddie CPD Learning Activity: Cyber Security: The challenge for insurers and practices alike

CPD Categories/Hours:

ASIC Knowledge Requirements: Insurance / 2.25 hours
Legislated CPD Area: Professionalism & Ethics / 2.25 hours

Learning Outcomes:

This article looks at the enormous strain that is being placed upon insurers as they struggle to deal with the dynamic threat that is posed by cyber-crime. The challenge is so difficult because the threats and their potential magnitude change faster than actuaries are able to measure them and price premiums accordingly.

As you will see, this also means that those seeking cyber security policies will need to have strong measures in place to defend themselves before a policy is granted and will have many conditions placed on the policy in addition to quickly increasing premiums.

The crux of the issue for practices is that we need to be in a constant cycle of education and training to understand the threats and then taking protective action to deal with the issues that are uncovered.

Upon completion you will:

  • Understand what is creating a difficult environment for insurers and the reasons why this is occurring.
  • Understand why training of your staff is the first step in the implementation of your policy.
  • Understand why constant vigilance and continuous risk management are the most practical steps that can be taken and how this may interact with a cyber insurance policy.

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