Cyber Insurance and Cyber Defenses 2024: Lessons from IT and Cybersecurity Leaders

Cyber risk is inevitable. No business with internet-connected devices can eliminate cyber risk entirely; rather it’s a question of how to manage it. Two of the primary approaches to cyber risk management are treatment by deploying cyber controls and changing user behaviors, and transfer through cyber insurance. Treatment and transfer are complementary elements of a balanced cyber risk management program, and each organization needs to identify where their equilibrium lies. Cyber risk treatment and transfer are also interconnected, with security controls and behaviors having a direct impact on an organization’s ability to transfer risk through insurance. Strong, effective cyber controls reduce cyber risk, making it easier to access lower priced coverage. Conversely, organizations with weak risk treatment often struggle to get the policy they need at a price they can afford