The insurance industry is just one of many that are being revolutionized and – frankly – disrupted by new technologies. These technologies – whether they be big data and data analytics, or AI and machine learning, – are changing the way that insurers sell their policies to customers, how they assess risk, how they price policies and even how they engage with their customers.
Each week, we’ll be taking a look at the breaking news and interesting trends that we see in the insurance industry, and analyzing the stories about new insurance technologies that are shaping the industry.
This week, we take a look at a new study that shows that enterprises may not be as prepared for cyber attacks as people would hope, we look at trends that could be making this a tough hurricane season for insurers, discuss the hack that impacted everyone’s favorite fire-breathing dragon show, and analyze what CIOs and CISOs need to know when analyzing cyber insurance policies.
Warm Atlantic Sets Stage for Busy Hurricane Season Peak
If this summer was too hot for you to handle, there’s some bad news. Those hot temperatures were a gift that keeps on giving – and their next gift could be slew of hurricanes during this upcoming hurricane season.
According to the Weather Company, Atlantic Ocean temperatures are the third highest they’ve been since 1950. And, as the Insurance Journal points out, “Warm ocean temperatures are the lifeblood of hurricanes. Meanwhile, wind shear and dry air from the Sahara, both of which can slow storm development, aren’t as pronounced at this time.”
What does this mean for insurers? Well, with every hurricane there’s the chance for damage to homes, businesses and critical infrastructure. A more active than usual hurricane season could mean more claims for insurers, who need to be prepared.
Cybersecurity insurance is a relatively new offering for insurers that is really more of a collection of services for companies that fall victim to a breach than a traditional insurance policy. However, it’s still an important way for companies to protect themselves and their brand from an occurrence that most security experts would consider an eventual improbability for every company, regardless of how sophisticated their defenses are.
That being said, it’s quite surprising that a recent report by FICO (NYSE: FICO), a leading analytics software company and a name that many Americans probably associate with credit scores, shows that half of the companies they surveyed don’t have cybersecurity insurance. Scarier yet, that number jumps to more than 70 percent in the healthcare industry.
If you’re among the 50 percent that is without insurance and would like to remedy that…
Cyber Insurance: Read the Fine Print!
…then you may want to read this article from cybersecurity publication, Dark Reading, very carefully.
In this article, Sara Boddy, who leads F5 Labs, the threat intelligence reporting division of F5 Networks, shares some anecdotes of policies that didn’t pay out. She also gives CIOs and CISOs tips about what they should be looking for in a policy, where coverage gaps can exist, and what they should do prior to shopping for a policy. It’s a good, and very important, read for anyone currently cybersecurity insurance shopping.
Hackers Release More Unaired HBO Episodes
If you’re looking for a reason why cybersecurity insurance is so important for all companies, look no further than this new story from the Insurance Journal that explains why all of your Game of Thrones loving friends are sheepishly tiptoeing around the Internet for fear of stumbling on spoilers.
In a move that is sure to anger the Mother of Dragons to the point of screaming, “Dracarys,” hackers have stolen and released episodes of HBO original programs that have yet to officially air on the network. This may sound like the plot of a new futuristic crime drama, but it’s real. And, this isn’t the first time content was stolen and leaked from the company, which has previously had unreleased episodes of its shows held for ransom.
Developing a Better Understanding of Risk
Data is your friend. That’s the general theme of this new white paper from Pitney Bowes. Although registration is required, those that fill out the form will be treated to a great piece of content detailing how a 360 degree view of insurance customers can help insurers get a better picture of risk, and make better underwriting decisions. (Full disclosure: Pitney Bowes is an advertiser and sponsor of the Insurance Tech Insider.)