What Are The Benefits And Reservations Of Cyber Insurance?
What Are The Benefits And Reservations Of Cyber Insurance?: Asia lags behind US in cyber insurance cover which is why cyber crime rate in Asia is higher. In this age and era of digitization and computerization, nearly everything has been transferred online in one way or other.
Where dusty file rooms used to be full to the brim with piles upon piles of files, these are all easily adjustable on USB disks now. While the ease of this particular shift is tremendous, it also brings with it the very real and ever looming threat of cybercrime.
What exactly is Cybercrime?
A cybercrime is a crime in which a computer is the “victim” so to say. Hackers are continually coming up with new ways to obtain or effect valuable information. Some of the common names that may well be familiar to a lot of us are hacking, phishing, spamming. A situation in which computers are used as a tool to perform a hate crime also falls under the umbrella of cybercrime.
Cyber Insurance: Pros & Cons
- Typically insurance covers manifest items, that is, in case of a cyber crime mostly insurance policies would cover loss of property. The valuable and often irreplaceable information that is lost stays unaccounted for. Cyber Insurance has been designed to cover this monumental gap and provide security.
- Cybercrime is by nature unpredictable. In case a data breach does occur, it is quite difficult to be able to put in a contingency regarding how much data would be lost, and how much that would cost the organization.
- In the event of a mishap, cyber insurance obviously helps cover some of the associated costs. However what is truly valuable is that a lot of companies also provide helpful guidance in the form of a “coach”, who is usually an attorney possessing the knowledge as well as expertise to steer the ship in times of crisis.
- Cyber insurance does cushion the blow in times of need. However, one negative aspect is that it does not usually provide complete coverage.
- Due to it being a relatively new introduction, there are very limited choices available.
Cybercrime is increasing day by day and so is its severity. Asia lags being US in cyber insurance cover and thus is more susceptible to it, which would prove to have disastrous long term effects.
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