The risk management sector has been transformed by the threat of cyber security exposures. Cyber security policies are generally overlooked by insureds, but that luxury is quickly coming to an end. Every year there are increasingly sophisticated viruses being developed by teenage hackers with access to NSA-level spyware. Yes, while the ever-present threat of Russian and Chinese hackers looms over every industry, the real threats are home grown. Captive insurance is the answer.
The Evolution of Cyber Hacking
Remember, Snowden-Manning disclosures did more than simply tell the masses about the extent of NSA spying. There were also releases of cyber-espionage software onto the internet which have been coopted by amateur hackers. Realistically, any person with a great computer and a few hours of time can go to raid forums, download a recent hack, and start the data mining process. Hacking is way less sophisticated than Hollywood gives the impression.
How Hacking Occurs
This means that companies no longer can rely on simplistic cyber security solutions. The question is not if your company will get hacked, but when. At the worst end, there are a number of free software tools available on the internet which allow a hacker to basically shut down a company’s entire IT system. Then, the hacker will force the company owners to pay $300 Bitcoin (on average) in order to release the system.
While you wait around debating whether to negotiate with terrorist, the hackers have already moved onto other targets – or maybe sleeping on the other end of the world. There are very few solutions to a cybersecurity breach, and preparation is the only way to ensure the best possible response to such a crisis.
The Future of Hacking and How to Prepare
Every year, a rush of new hacks from various spy agencies across the world make their way onto the internet. The NSA is not the only spy agency at risk from being hacked. This means that hackers have another armada of weapons added to their enviable arsenal every single year.
This transforms cyber security captive insurance from a luxury into a necessity. Without such coverage a company is a sitting duck for a hacker. And even with it, the options look more like triage rather than a panacea.
As the economy evolves, so do its parasites. Given the breathtaking pace of the technology community’s growth, only captive insurance solutions offer the breadth and flexibility of coverage necessary to provide peace of mind and legitimate security to the stakeholders.
Read Our Article on Captive International
Venture Captive Management is proud to have Chief Compliance Officer and General Counsel, Matthew Queen’s, article Why Captives Can Shine Through on Cyber published on Captive International’s website. Captive International is a leading source for the latest news, analysis, and features drawn from ongoing coverage of the global captive insurance market and bespoke special reports. If you would like more information about how VCM can help your business, please contact us directly. We’ll be happy to help you find and create the captive insurance structure that work best for your company