Conceptualising the cyber insurance product: How insurance can enhance risk management frameworks

Naidoo, L. (2022) Conceptualising the cyber insurance product: How insurance can enhance risk management frameworks. British Insurance Law Association Journal, 2022, 9.

Abstract

Cyber risks are one of the top global risks that permeate every aspect of business and society. Yet policyholders lack clarity on the cyber insurance product and are unclear on what constitutes appropriate cyber security measures to prevent or mitigate cyber losses materialising. This can be explained by way of a coverage gap (gaps in the policy), knowledge gap (gaps in understanding cyber risks), and ‘compliance fatigue’. This article dissents with the notion that the primary function of insurance - as a mechanism for the transfer of risk - is adequate to manage cyber exposure. Rather, by analysing the concept of the cyber insurance product, it argues that cyber insurance can (and should) play a broader role to enhance risk management frameworks, thereby creating a synergetic relationship between risk transfer (i.e., insurance) and risk management (i.e., cyber security investments).

• Item Type: Articles
• Additional Information: BILA Journal Special Platinum Edition 2022.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Naidoo, Dr Livashnee
• Authors: Naidoo, L.
• College/School: College of Social Sciences > School of Law
• Journal Name: British Insurance Law Association Journal
• Publisher: British Insurance Law Association
• ISSN: 1364-7709

Related URLs

• Publisher