Debunking Common Myths About Catastrophic Cyber Incidents
Security Boulevard, Wednesday, June 19th, 2024
Vaudeville isn't dead, but the traditional song-and-dance, jugglers and animal acts have been displaced by technocrat philosophers, citing cyber dystopias and the uninsurability of the peril at industry events, wherever an audience of ten and an internet streaming device can be found.
Their skepticism is not entirely unfounded: Until we can agree on the scope and scale of a cyber catastrophic event, the economic trade of tail risk will be stifled. Short of a catastrophic event - either by definition or scale - this debate will likely drag on in perpetuity. The reasoning for such an event is twofold: To test the limits of underwriting acumen and validate the model outputs vying for relevance in a growing market.
Validation and understanding cyber peril requires deconstructing some of the most common myths. Ones that continue to drive misconceptions concerning cyber risks and their insurability.