The State and Future of Cyber Insurance
Cloud Computing often raises or complicates the question of how customers can recover the direct costs and indirect losses resulting from an outage or a data breach. The objective of this Discussion Paper is to explain the role Cyber Insurance contracts play in mitigating those consequences, and the challenges of assessing the risk and the damage – especially to intangible assets.
Cyber Insurance (CI) is evolving in response to user demands. In particular, a new form of contract – parametric insurance – has been introduced to overcome some of the limitations of traditional indemnity insurance. This paper explains how this paves the way toward the future state of CI.
The paper covers the following topics:
- What is Cyber Insurance?
- The impact of intangible assets
- The impact of cloud services
- Risk assessment
- The future of Cyber Insurance
- Standards needed for Cyber Insurance
The paper was published by the Cloud Working Group. Copyright is owned by OMG. Visit www.omg.org/cloud to learn more.