In a recent Wall Street Journal article, collaborative efforts led by The Marsh brokerage unit of Marsh & McLennan plan to rate products for reducing cybersecurity risks.
Insurers recognize that the cybersecurity marketplace is crowded with products to choose from and want to help steer organizations away from those that are ineffective. Such collaboration across the insurance industry is unusual and speaks to the rising dangers posed by sophisticated digital hackers and nation states.
Cybersecurity vendors can apply to have their products and service offerings evaluated by the program, such as firewalls, encryption, tools for monitoring threats, and training. Plus, policyholders who use the designated offerings may qualify for improved terms and conditions on policies, Marsh says.
Likewise, there are potential benefits for the insurers as they will likely incur fewer claims from expensive cybersecurity attacks. It makes sense for insurers to steer companies towards making solid investments in cybersecurity tools, IT infrastructure, and employee training.
At the same time, these collaborative efforts are being announced as insurers refuse to payout over the infamous NotPetya cyberattack leading to a dispute between a law firm claiming they failed to pay out for damages and costs associated with the attacks.
Evaluating tools and services is a great start towards improving your cybersecurity posture. However, we believe that helping clients mature their IT organizations is also a critical part of managing cybersecurity risk.
Want to know more? Here’s what SMBs can do now to improve their cybersecurity posture.