Cybersecurity in insurance

Abstract

It is a common assumption in policy discussions that the widespread adoption of cyber insurance would boost network security. However, this depends on potential applicants’ processes to get cyber insurance. Candidates often submit proposals with self-evaluations as part of the selection process. A review of cyber insurance claim forms is presented here. According to the evidence presented in our contributions, the insurance industry will promote best practices in cybersecurity. The risk-based and proposal-based approaches to incident prevention are presented as solutions to the problem of information asymmetry. In this last section, we discuss the factors that may have led to the gap between insurance practices and informationally strong cybersecurity procedures. In this chapter, the importance of information management economics is highlighted for comprehending insurance coverage.