As cyber risk evolves, the insurance industry tightens guardrails

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As the risk of cyberattacks has increased in recent years, the long-term financial consequences of such attacks have become a top concern for large enterprises, small to medium-sized businesses and even national governments.

Cyberattacks can have devastating consequences on businesses, resulting in data loss, weeks of downtime and millions of dollars in lost sales.

The cyber insurance market has matured as a tool to help protect against these risks, growing into a global $15 billion industry. But the insurance industry has major concerns about systemic cyber risk and will not function as a blank check to secure organizations from malicious attacks.

"A single vulnerability or attack can generate simultaneous claims across an insurer's entire portfolio, making it structurally impossible for private markets to diversify away systemic cyber risk," according to a report by the Foundation for the Defense of Democracies.

The insurance industry is holding policyholders increasingly accountable for maintaining strict oversight over th

Fuente original: Yahoo Finance (https://finance.yahoo.com/technology/ai/articles/cyber-risk-continues-evolve-insurance-102144657.html)