The concept of cyber insurance and its role in the ISO-based risk management process: An industrial perspective

With cyber threats rapidly growing, cyber risk insurance is emerging as a solution that can complement traditional cyber security tools based on technical and organizational measures. Moreover, the well-established risk management standards, such as ISO 31000 and ISO 27000, identify cyber insurance as having an important role to play in financing the negative impact of cyber risk. Accordingly, the purpose of this paper is to present the concept of cyber insurance and its key features, such as scope of coverage, areas of application, underwriting and premium calculation principles. The analysis is focused on industrial enterprises, which in many cases belong to the state’s critical infrastructure. They face not only pure cyber risk, but also cyber-physical risk, which means particularly high severity of potential losses. This study can have practical value in the context of requirements of the new NIS 2 Directive.