Sunday, September 13, 2009

Cyber Insurance - A Valuable Risk Management Tool

There are those who say that the traditional means of obtaining assurance on financial information and systems no longer works well and that the best approach is to buy insurance. Others say that such insurance would be prohibitively costly.

The provision of cyber insurance has nevertheless been growing in recent years. Cyber insurance is insurance against loss from cyber crime, such as network breaches, hacking, malicious viruses, etc.

I does not releive the buyer company of all responsibility to maintain a secure system, but does offer up some mitigation for losses arising from cyber crime activities. Volume has more than tripled from 2002 to 2006 (laatest figures available) which indicates a strong interest out there and a growing recognition of the need for this insurance.

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