, APAC
175 view s
/Joshue Hoehne from Unsplash

Cyber insurance can ‘avoid severe financial setbacks’ like CrowdStrike incident

A WTW director shares long-term solutions to incidents like CrowdStrike.

After CrowdStrike updated its Falcon endpoint detection and response (EDR) solution, millions of computers experienced the blue screen of death (BSOD).

“With prompt planning and readiness for high-risk cyber events together with an understanding of your liabilities and how cyber incidents could interact with your insurance coverage, you’ll be in a better position to avoid severe financial setbacks,” Omar Al-Shahery, Director of Cyber Risk Consulting said in a WTW insight.

This glitch caused widespread business interruptions, affecting hundreds of companies, airports, hospitals, and other critical services globally.

Whilst the company clarified there was no malicious intent and responded quickly, the disruption was extensive. Imagine the impact of a global cyber incident caused by malicious intent without a quick fix. 

Long-term solutions

Operational downtime from incidents like CrowdStrike extends beyond immediate revenue loss, affecting a wide range of liabilities. 

For example, airlines and hospitals impacted by CrowdStrike face substantial financial and legal liabilities due to service disruptions. Accurate quantitative analysis of potential insurable supply chain compromises is crucial for businesses relying heavily on operational continuity. Understanding liabilities and how cyber incidents could interact with your insurance coverage can help avoid severe financial setbacks.

Reducing the impact of future cyber events requires a thorough understanding of likely cyber threat scenarios. Many organisations are already quantifying cyber risk scenarios to recognise potential pain points and get ahead of specific threats. If your organisation relies on third-party solutions, meticulously quantifying the risk of third-party cyber disruptions is essential. 

This involves identifying and quantifying relevant cyber risk scenarios using actuarial and data science, forensic accounting, cyber threat intelligence, and insurance claims data. By understanding the financial impacts and prioritising mitigation options, you can safeguard your organization’s longevity and resilience. 

Achieving a comprehensive understanding of your cyber maturity capability allows you to attain the appropriate cyber risk insurance and mitigate gaps for better financial positioning.

 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.