Cyber Insurance and the Cyber Security Challenge | Royal United Services Institute





We detect you are using a browser which is no longer supported. 


For the best experience, please upgrade to the latest version of Google Chrome.






Menu






Explore our ResearchEventsNews & CommentMembershipAboutContactLog in

	Explore our Research
	Events
	News & Comment
	Membership
	About
	Contact

Log in 

Connect with us
	Explore Our Research
	Publications
	Occasional Papers



Occasional Papers
Cyber Insurance and the Cyber Security Challenge
Jamie  MacColl, Dr Jason R. C. Nurse and James Sullivan28 June 2021





Long Read
Download PDF(1019KB)





Main Image Credit Courtesy of Brian Jackson / Adobe Stock

Cyber risk poses a complicated and growing challenge for governments, businesses and consumers. This paper explores cyber insurance’s potential contribution to solving this problem.

Governments and businesses are struggling to cope with the scale and complexity of managing cyber risk. Over the last year, remote working, rapid digitalisation and the need for increased connectivity have emphasised the cyber security challenge. As the pursuit of approaches to prevent, mitigate and recover from malicious cyber activity has progressed, one tool that has gained traction is cyber insurance. If it can follow the path of other insurance classes, it could play a significant role in managing digital risk.

This paper explores whether cyber insurance can incentivise better cyber security practices among policyholders. It finds that the shortcomings of cyber insurance mean that its contribution to improving cyber security practices is more limited than policymakers and businesses might hope. Although several means by which cyber insurance can incentivise better cyber security practices are identified, they have significant limitations. Interviewees from across government, industry and business consistently stated that the positive effects of cyber insurance on cyber security have yet to fully materialise. While some mature insurers are moving in the right direction, cyber insurance as a whole is still struggling to move from theory into practice when it comes to incentivising cyber security.





keywords
Topics	Cyber Security and Resilience
	Cyber Strategy


Research Groups	Cyber


Projects	Incentivising Cybersecurity through Cyber Insurance


WRITTEN BY
Jamie  MacColl
Research Analyst 
Cyber

View profile


Dr Jason R. C. Nurse
Associate Fellow

View profile






James Sullivan
Director, Cyber Research
Cyber

View profile








Main Image Credit Courtesy of Brian Jackson / Adobe Stock

WRITTEN BYJamie  MacColl
Research Analyst 
Cyber

View profile


Dr Jason R. C. Nurse
Associate Fellow

View profile






James Sullivan
Director, Cyber Research
Cyber

View profile







Reading options

Download PDF(1019KB)

Print this page

Share this page





Reading options
Download PDF(1019KB)

Print this page


Explore our related content




Stay up to date with RUSI
Receive updates on publications and events from RUSI straight into your inbox.

Sign up


Connect with us



Explore RUSI

	Topics
	Regions
	Research Groups & Experts
	Publications



Popular Links

	Events
	News & Comment
	Membership
	About

	Contact Us
	Appeal for 61 Whitehall
	RUSI Library
	Support RUSI



As an independent institution, we produce evidence-based research, publications and events on defence, security and international affairs to help build a safer UK and a more secure, equitable and stable world.


Cookie PolicyPrivacy PolicyEthics StatementEvents Ts&CsMembership Ts&CsLegalCopyright 2021 RUSI Registered Charity (no. 210639)