EN- Industry Focuses

Security conversations with Hart Brown, Executive Vice President and COO Firestorm Solutions Insurance has long existed as a mechanism for the transferal of risk to a third party, particularly for those risks that fall outside of an organization's direct control. However, as the threats we face evolve, so must the insurance products that we purchase. Recently, the most significant dangers that have come to light and threatened to destroy a company overnight have emerged within the cybersecurity sphere. This has fueled the growing interest and appetite for cyber liability insurance. We recently caught up with Hart Brown, a leading cyber security expert, to ask him about cyber liability insurance. Brown, is Executive Vice President and COO of Firestorm Solutions, a division of Novume Solutions (NASDAQ: NVMM), a leading crisis and risk management firm. A former Program Director for the US Department of State and certified ethical hacker, Brown has 20 years' experience in security, crisis management, emergency management and business continuity. Q: What is cyber liability insurance? A: In the simplest possible terms, cyber liability insurance is a means of weeding out inadequate software providers and of holding people accountable for doing their job properly. Just like with any other insurance policy, there are certain conditions which must be met before a policy is issued. This helps to set a minimum bar for the cybersecurity of an organization and its suppliers. It gives you peace of mind that, should you be struck by a cyber incident, you will be able to access some funds to manage the response and get back up and running. Just as importantly, if you choose to only work with partners and suppliers who have cyber liability insurance, it gives you the confidence that should their incompetence cause harm to your business, then you will be able to successfully file a claim and get compensated. Sure, you can also try to sue those without it if you can demonstrate they were the cause of the loss. However, it won't do much good if they don't have the resources to cover the liabilities! Q: How big is the market? A: The cyber liability insurance market is still in its relative infancy with many insurers having only recently started selling polices at any real volume. Right now, the estimated written premiums for policies around the world is valued at $2.5 billion. Yet, Allianz estimates published in the Financial Times last year suggest the figure could grow to $20 billion by 2025. Cyber-related risks are significant so your premium will be high too. However, that doesn't mean it won't deliver good value. "The cyber liability insurance market is still in its relative infancy with many insurers having only recently started selling polices at any real volume."

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