DSPM's Impact on Cyber Insurance
I had a couple of hours in the car the other day and based on a recommendation from Dave Mrowzinski , I decided to play around with the new conversation feature in ChatGPT. I was really impressed by some of the answers. That said, I'm no expert on Cyber Insurance and I would be interested in what others think. What do you think about ChatGPT's responses?
Q: I have a question. I am wondering, what are the typical premiums, if I was a Fortune 500 CIO, what premiums could I expect to pay for my cyber insurance?
A: Cyber insurance premiums can vary widely based on several factors, including the size of the company, the industry, the company's annual revenue, the amount and type of coverage, and the company's security posture and history of cyber incidents.
For a Fortune 500 company, premiums can range significantly. Generally, large corporations might expect to pay anywhere from several hundred thousand to several million dollars annually for comprehensive cyber insurance coverage. For example, premiums could range from $500,000 to $10 million per year, depending on the coverage limits and the specific risks involved.
To get a more accurate estimate, companies typically work with insurance brokers who specialize in cyber insurance. They assess the company's risk profile, review existing security measures, and determine the appropriate level of coverage and corresponding premiums.
Q: What is the typical deductible for a policy like that?
A: For large corporations like those in the Fortune 500, cyber insurance deductibles can also vary widely based on the specifics of the policy and the assessed risk. Typically, deductibles for comprehensive cyber insurance policies for such companies might range from $100,000 to $1 million or more.
The exact deductible amount will depend on factors such as the extent of coverage, the company's risk profile, and the negotiated terms of the policy. Higher deductibles often lead to lower premium costs, while lower deductibles can result in higher premiums. The insurance broker and underwriter will work with the company to tailor the deductible and coverage to match the company's needs and risk tolerance.
Q: If I could prove a significant reduction in the risk profile, what kind of discounts do you think I could get on my premiums, and what do you think is the likelihood that a breach causes damage?
A: If your company can significantly prove a reduction in a client's risk profile through robust data security posture management, it could potentially lead to substantial discounts on their cyber insurance premiums. Insurers typically offer discounts for demonstrated improvements in security measures and reduced risk exposure. These discounts can range from 10% to 30% or more, depending on the insurer and the specific improvements made.
Regarding the likelihood of a breach causing damage, improved data security posture can significantly lower this risk. While it is difficult to provide exact probabilities, companies with strong security measures and proactive risk management strategies are generally much less likely to experience damaging breaches. Insurers take this into account when assessing premiums and coverage terms.
To summarize, demonstrating a significant reduction in risk profile could lead to notable discounts on premiums and a lower likelihood of a breach causing damage, enhancing both security and cost-effectiveness for the client.
Q: You mentioned that getting a discount of 10%-30% or more might be possible. Are you able to site any sources to defend that statement?
A: Certainly! Here are some sources and examples to support the statement that implementing robust cybersecurity measures can lead to significant discounts on cyber insurance premiums, typically ranging from 10% to 30% or more:
Industry Reports and Studies
Real-World Examples
Insurance Industry Insights
Conclusion
The availability of premium discounts for implementing strong cybersecurity measures is well-documented in industry reports, studies, and real-world examples. These sources support the assertion that businesses can achieve discounts typically ranging from 10% to 30% or more by demonstrating a proactive approach to cybersecurity. This highlights the financial incentives for organizations to invest in robust data security posture management solutions and practices.
Q: So let’s assume a breach has occurred and I have a deductible of $1 million and let's say the damages from the breach are expected to be maybe $1.5 million, would you recommend that I make the claim or eat the extra half a million dollars?
A: That depends on several factors, including the specifics of your policy, your company's financial situation, and the potential long-term impacts of making a claim.
Here are some considerations:
In general, if the financial impact of not making the claim is manageable and you want to avoid higher premiums or other potential long-term impacts, you might consider covering the additional $500,000 yourself. However, if making the claim would provide necessary financial relief without severely impacting future costs, it might be worth it. Consulting with a financial advisor or risk management expert could provide more tailored advice.
Q: Again, let's say I do have a breach and the breach is going to cost me two million dollars. ?If I decide to make a claim, can I expect my insurance company to investigate me to ensure it wasn't negligence on my part?
A: Yes, you can expect your insurance company to conduct an investigation following a claim, especially one involving a significant breach costing two million dollars. Insurers typically investigate to:
The investigation process may involve reviewing your company's security policies, incident response procedures, and compliance with the terms of your insurance policy. Cooperation and transparency during this process are crucial to ensure a smooth claim settlement. If negligence is found, it could impact the coverage or result in denied claims. However, if your company has strong security measures and can demonstrate due diligence, the claim is more likely to be processed without issues.
Q: So let's just say that it is, my insurance company is claiming that it is negligence. It stands to reason that I'm going to have significant legal costs of my own now, correct?
A: Yes, if your insurance company determines that negligence was a factor in the breach, it could lead to significant legal costs for your company. Here’s why:
Given these potential costs, it’s important to:
Having strong legal support can help manage these challenges and protect your company’s interests in the event of a breach.
Q: What if I didn’t have a full inventory of all of the cloud data stores?
A: Not having a full inventory of your cloud data stores can significantly increase the risk of a breach and complicate any insurance claims. Here's how this could impact your situation:
To mitigate these risks, it’s crucial to:
Proactively managing your cloud data inventory not only strengthens your security posture but also supports a more favorable outcome in the event of an insurance claim.
Q: What about if I didn't know where I had sensitive data? Would that matter if I didn't know all the locations of my sensitive data?
A: Yes, not knowing where sensitive data is located within your organization can have significant implications, especially in the context of cybersecurity and compliance:
To address these challenges, it's crucial to:
By proactively managing and documenting your sensitive data locations, you can strengthen your overall data security posture, enhance compliance readiness, and mitigate potential risks associated with data breaches and insurance claims.
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Q: Let's assume I'm working for a fairly large enterprise and there was a sharepoint site that had "organization read access" enabled and inside of that sharepoint site was several million SSN records. If that data was to be exfiltrated by a bad actor would that be considered negligence?
A: Yes, the situation where a SharePoint site containing several million SSN records was accessible to every employee would likely be construed as negligence. Here's why and what that could mean for your cyber insurance claim:
Why It Could Be Construed as Negligence
Potential Impact on Cyber Insurance Claim
Mitigating Actions
Immediately address the access control issue by restricting access to sensitive data based on job roles and responsibilities.
Conduct a thorough review of all data access permissions and implement the principle of least privilege.
Implement comprehensive data governance policies.
Regularly audit data access and storage practices to ensure compliance with best practices and regulatory requirements.
Document all security measures and steps taken to secure sensitive data.
Maintain records of your incident response efforts and cooperation with the insurer.
Consult with legal experts to understand your position and prepare for potential disputes with the insurer.
Legal counsel can also assist in responding to regulatory inquiries and managing any resulting litigation.
Long-Term Strategies
Conclusion
While the situation you described could be seen as negligence, taking immediate and proactive steps to remediate the issue, strengthen security practices, and engage with legal counsel can help manage the situation and support your cyber insurance claim. Moving forward, implementing robust data governance and security measures will be crucial to prevent similar issues and demonstrate due diligence to insurers and regulators.
Q: Sounds like people should just buy Cyera and get a handle on their data security posture management?
A: Investing in a robust data security posture management solution like Cyera can indeed help organizations manage their data security more effectively and mitigate the risks associated with data breaches. Here’s how such a solution can be beneficial:
Benefits of Using Cyera for Data Security Posture Management
Visibility:?Gain complete visibility into where sensitive data is stored across cloud and on-premises environments.
Classification:?Automatically classify data based on sensitivity and compliance requirements.
Principle of Least Privilege:?Ensure that access to sensitive data is restricted to only those who need it, reducing the risk of unauthorized access.
Role-Based Access Control:?Implement and manage role-based access controls to enforce security policies.
Threat Detection:?Continuously monitor for unusual or suspicious activity that could indicate a potential breach.
Alerts and Notifications:?Receive real-time alerts and notifications to respond promptly to security incidents.
Regulatory Compliance:?Help ensure compliance with data protection regulations like GDPR, CCPA, HIPAA, and others.
Audit Readiness:?Maintain detailed logs and reports to facilitate audits and demonstrate compliance.
Vulnerability Identification:?Identify and prioritize vulnerabilities based on risk, allowing for targeted remediation efforts.
Automated Assessments:?Use automated tools to regularly assess and update the security posture.
Preparedness:?Develop and refine incident response plans based on insights gained from the security posture management system.
Forensic Analysis: Provide detailed data for forensic analysis in the event of a breach.
Encryption: Ensure that sensitive data is encrypted both at rest and in transit.
Data Masking: Implement data masking techniques to protect sensitive information.
Why Cyera?
Cyera specializes in providing comprehensive solutions for data security posture management, offering a range of features designed to help organizations protect their sensitive data and comply with regulatory requirements. By leveraging Cyera’s platform, organizations can:
Conclusion
Investing in a solution like Cyera for data security posture management can significantly enhance an organization's ability to protect sensitive data, comply with regulations, and mitigate the risks associated with data breaches. By implementing robust data security measures, organizations can not only protect themselves from potential breaches but also reduce the likelihood of facing severe legal, financial, and reputational consequences.
Q: Thanks ChatGPT!
A: You’re welcome! If you have any more questions or need further assistance, feel free to ask. Good luck with your ongoing efforts in data security posture management!
Great post Ray Ryjewski!! So glad to be on team Cyera with you!
Leader in Cybersecurity, IT audit, Governance Risk and Compliance (GRC), Third Party Risk, Supply Chain Security, Identity and Access Management, and Zero Trust.
4 个月Very interesting and insightful information. Cool experiment and great use of your time in the car!
Information Security Leader -> Cybersecurity Programs, Risk Management Strategy, and Strategic Planning & Leadership
4 个月Love this Ray, very informative and relavent!!