How the increasing demand for cyber insurance is changing the role of the CISO
By Mary K. Pratt, Contributing writer
Commentary by Nick Kathmann, LogicGate CISO
As more organizations seek out insurance, CISOs are becoming key advisors on coverage needs and learning to integrate policies into security response strategies. Demand for cyber insurance is up, and market observers expect the number of standalone cyber insurance policies will continue to rise. German multinational insurance company Munich Re has valued the global cyber insurance market at $14 billion in 2023 and estimated that it will hit $20 billion-plus in 2025 and exceed $29 billion in 2027.
The rise of standalone cyber insurance, something that has been years in the making, is putting new responsibilities on CISOs as security officers are being asked to evaluate cyber risk and quantify it as part of the insurance selection process.
They’re being asked to help determine the appropriate levels of coverage based on that evaluation and quantification and they’re having to demonstrate to carriers that their organizations do indeed have specific controls in place that show they’re a good bet for coverage.
Nick Kathmann, CISO of LogicGate, a risk management and compliance solution provider, cites the threat landscape and the high costs of responding to incidents as the big motivators today. He also cites as a key reason for the surge in interest the fact that many more companies now require business partners to have cyber insurance, and he notes that investors, too, are making such demands.
