Despite high-profile incidents of hacking and data breaches such as the Sony hack and the Ashley Madison data breach, confusion surrounds the matter of Cyber insurance and even what is included within it. That was a principal message of speakers on the first day of the International Cyber Risk Management Conference in Toronto yesterday.
One example given by Matthew Davies, AVP – Professional, Media & Cyber Liability of
Chubb Insurance at the event was on the matter of Social Engineering Fraud. Davies spelt out the differences in a security breach achieved by outside incursion as opposed to a security breach achieved by way of a fraudster using confidence tricks, rapport, and information readily available on social media to manipulate a vulnerable target. This kind of deception, he pointed out, is just as likely to be initiated by telephone as via electronic means.
“To fall under most cyber policies loss by e-theft has to be perpetrated by a third party. If you’re hacked into and as a result your identity is stolen, that is cyber. If someone dupes you – that’s crime.”
Cyber coverage is becoming increasingly necessary and, maybe suprisingly, increasingly more affordable – a report in ibamag.com yesterday by
Marsh concluded that
cyber insurance rates are dropping – by as much as 13%.
