The debate extends the concepts of the discussions in the white Papers on \u201cPro-Active Insurance Pricing Model\u201d and \u201cCyber Incentive Model\u201d with the discussion of the paper \u201cAdvancing Accumulation Risk Management in Cyber Insurance – Prerequisites for the development of a sustainable cyber risk insurance market\u201d. The debate explores how important it is that the insurance markets manage the accumulation risk and learning to understand it better so the market can continue to expand. <\/p>\n\n\n\n

We discuss the role of cyber insurance in supply chain risk management and learn that the beneficiaries of the cyber insurance policy in a supply chain context are generally not the policyholders. And furthermore, it can be compared to other insurance lines such as automotive in particular when looking at \u201cUsage Based Insurance (UBI)\u201d, which is a rising parallel trend collecting data from installed black boxes in vehicles. Policyholders just expect \u201cgood drivers to be rewarded with lower premiums\u201d, which is also a topic for cyber risks and cyber security, both in technology and in cloud systems. <\/p>\n\n\n\n

There is a rapid increase in businesses and individuals, who outsource to the cloud with a potential for risk concentrating around Cloud Service Providers\u2019 operations. The usage of common software packages and some software runs across industries, so these create wide-spread exposure to malware attacks. The insurance industry can provide its experience with other risks in a variety of business lines. In the debate, we discuss several factors regulations, risk mitigation along the risk value chan.<\/p>\n\n\n\n

Insurance is fundamentally a risk transfer process rather a technology challenge. It is largely based on people\u2019s perception of risk and their risk appetite. Self-insurance is an easy way out when the perception of risk is hard to define. As Steve explained, maintaining strong underwriting discipline is a foundation to limiting accumulation risk. <\/p>\n\n\n\n