Joining the Mad Hatter's Tea Party
The insurance industry is shifting from one portfolio of risk events that it has identified and managed profitably for thousands of years to a new, and significantly different portfolio of risk events: a plethora of cyber risk events that the insurance industry erroneously believes it can successfully identify and manage profitably. Specifically, the insurance industry… Continue reading The Cyber Medium is the Message
I believe that the future financial viability of selling cyber insurance will be bleak at best and, more than likely, unprofitable. That is my driving assumption about future sales of cyber insurance. When is that "future" going to arrive? Thank you, July 2024 CrowdStrike cyber incident (not a cyber-attack, I know) for giving the world… Continue reading Future Financial Viability of Selling Cyber Insurance: Assumptions; Questions; No Answers
Too many people throw around the term "Black Swan" willy-nilly (a technical phrase for 'far too quickly without justification'). Systemic cyber events will become the norm. These systemic cyber events will all be "white swans". I suggest that most cyber attacks are systemic cyber attacks, but currently not with the reach of the CrowdStrike cyber… Continue reading The “Every Day-ness” of Black Swans in the Cyber Age
I have worked for insurance carriers (in marketing / market research areas) for almost 20 years beginning in the mid-1960s, been a management consultant (operational, strategy, and product development gigs) to the insurance industry for almost 10 years, and been an insurance industry analyst since 1997 (focused on the ways current and emerging technologies do… Continue reading Two Cyber Issues: Insurability & Financial Returns of selling cyber cover
I almost titled this post "Something Wicked This Way Comes" but I realized that systemic cyber risks are already here. They have come. There is no shutting the door to keep systemic cyber risks out. They are an attribute of any portfolio of two or more companies linked together through the use of the web.… Continue reading Systemic Cyber Risks: Ever Present, Ever Expanding (Originally published late 2023 – no changes)
I believe that there are many unknowns in the Cyber Age. You can flash back to the 2X2 of "known-knowns", "known-unknowns", "unknown-knowns" and "unknown-unknowns" but I want to keep it somewhat straightforward. That's why I show the illustrative visualization below. It's my attempt of showing a relatively straight-forward visualization, a 2-dimensional visualization at that, of… Continue reading Cyber Predictions: You Don’t Know…
This blog post is just a "thinking out loud and writing it down" blog post about cyber attack space(s). Here are some of the elements of the cyber attack space: Enterprise IT-created / enabled business / system processes (or certain activities of those processes) are connected to the web; Mobile devices become "smart" and, as… Continue reading Cyber Attack Space Elements (Selective)
The visual below is an illustrative cyber risk financing stack for Large / Jumbo enterprises. And maybe Mid-Size enterprises as well ??? For me, this stack visualizes a possible end-game for (re)insurers now selling cyber insurance. It reflects my point-of-view that (re)insurers should not be selling cyber insurance at all. Each segment of the stack… Continue reading Possible Cyber Risk Financing Stack (For Large / Jumbo) & Mid-Size ?? Enterprises
During my insurance industry years (industry itself, management consulting, insurance industry analyst), there were illustrations of the risk landscape of risk events to consumers and/or enterprises at that point-in-time. Often, the risk landscape included attempts at frequency and severity of each risk. "Traditional" Risk Landscape For me, the 'traditional' risk landscapes encompasses risks, some of… Continue reading Risk Landscapes: Traditional & Cyber-Focused
In this post I discuss my: Description of cyber attack spaces; Thought process to get to the metric: 'Density of Interdependence' of cyber attack spaces; List of my working hypotheses as some bit of context; Choice of a visual to use the 'Density of Interdependence' metric; Marked up visual to support thinking about the metric;… Continue reading Cyber Metric: The Density of Interdependence of Cyber Attack Spaces (First Cut)
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