Is cyber insurance the most effective risk transfer mechanism?

Cyberattacks are a clear and present danger for local governments. The potential extreme consequences of a cyberattack have caused many local governments to turn to cyber insurance. Given the potential losses from an attack, transferring the risk of an attack to the insurance market could be an attractive proposition.

However, cyber insurance is a relatively new type of insurance instrument compared to traditional insurances, like property and liability insurance.

Also, the cost of a policy or the availability can change dramatically in a short time. In fact, as of this writing, many governments have experienced rapidly increasing premium costs. This research report will help local governments approach cyber insurance in a risk-savvy manner and make smart decisions about how to invest in protection against cybercrime.

Explore the latest research on Cyber Insurance from GFOA and the Center for Digital Government and watch Alex Sidorenko and Shayne Kavanagh debate the place that cyber insurance plays in risk mitigation.


Presentation slides

About The Speakers

Shayne Kavanagh

Shayne Kavanagh

Senior Manager, Research, Government Finance Officers Association

Shayne is the Senior Manager of Research for GFOA and has been a leader in developing the practice and technique of long-term financial planning and policies for local government.

Alex Sidorenko

Alex Sidorenko

EX-Head of operational risk and insurance, EuroChem

Experienced executive across strategic, investment and operational risks and insurance working within multibillion dollar corporations in Australia, GCC and Europe. Successfully implemented changes to quantitative risk analysis, risk-based decision making and neuroscience.