Is Cyber Insurance The Silver Bullet?

Since its debut in 1989, the Internet has revolutionised commerce, communication, military actions, governance, healthcare, banking and the list just goes on and on and on. In fact, much of the modern world today is simple inconceivable without the Internet. This however, this so-called revolution, has not come without a price. The annual cost of cybercrime has now climbed to more than 1 trillion US dollars. And the cost was only half just a few years back. That rapid increase is only just the beginning. So with that in mind, we’re now seeing Cyber Insurance policies being offered, also referred to as a cyber risk insurance or cyber liability insurance coverage, to help organisation mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach. Does this even work and if so, how? To answer these questions, we speak to Paul Davis, Regional Chief Financial Officer for Allianz Global Corporate & Speciality.