RiskUKMarch2018

Examining The Role of Insurance in
Converged Security Solutions
“Risk comes from not
knowing what you are
doing. Price is what
you pay. Value is what
you get. Someone’s
sitting in the shade
today because
someone planted a
tree a long time ago”
Warren Buffett’s
words are apt in
describing today’s
security environment.
The more that we work
together in generating
holistic solutions, the
better the results in
the long term. Rachel
Anne Carter focuses
on the role of the
insurance industry in
the delivery of security
solutions
38
www.risk-uk.com
The security profession as we understand it
includes a variety of security generalists
and specialists: corporate and commercial
security practitioners, police and law
enforcement professionals, intelligence
operatives and military personnel. However,
when thinking more broadly of those who
provide solutions to security breaches, we also
have insurance providers, lawyers and others
whose work directly affects security outcomes
or regulates behaviour, and thus brings in
different bands of membership from corporates
or Government departments.
Holistic solutions are essential. When there’s
a lack of collaboration and an entrenchment of
the silos, there’s a duplication of resources and
an escalation in costs. Even worse, there’s the
danger that certain threats will fall into the
cracks between them.
Within the security profession, it’s now being
recognised that cyber security should not be
regarded as a silo. Rather, it’s everyone’s
business. Converged security solutions are
necessary. The exact same principle applies to
the integration of other specialisms.
The insurance industry is one of those
sectors resting on the outer edge of the
security industry, and not always certain of its
place within the security sector. Insurance is, of
course, a security measure. Greater knowledge,
learning and mutual benefits will emerge from
breaking down the existing silos, generating a
more communicative experience and achieving
holistic security strategies. As a direct result,
many insurance companies are now seeking to
engage with the security business sector on a
somewhat more effective footing.
Taking the example of cyber insurance, as we
innovate, adapt and develop product and
service offerings, we’re seeking to be part of a
holistic security experience. Although insurance
is critical to the economic security of a
company, entity or individual after a cyber
attack, we do of course recognise that
insurance alone isn’t enough.
In order to address cyber risks, we seek to
develop a joined-up approach where we can
look at the problem of cyber threats and its
transformation as a multifaceted issue and then
respond accordingly.
Understanding and insight
Insurers have the best possible understanding
and insight into economic protection against
business risks. There’s often a convergence of
physical and cyber risks. In some cases, the
physical risk may be about access to a building
or access to computer systems or servers, for
example. This requires specialists in both areas
to work together, and both types of specialist to
have a strong working knowledge of the other’s
domain. In the future, the distinction between
the two may well disappear entirely.
The insurance industry also relies upon
technical cyber professionals who have
specialist knowledge of IT and cyber
infrastructure, vulnerabilities and programming
capabilities and who can implement technical
solutions. The ability of insurance, physical
security and technical cyber experts to work
together to generate holistic solutions will be
preferable to a pure economic solution.
The economic aspect of the solution within a
broader security strategy will, however, aid the
recovery process and enable a company to have
the cashflow required to continue their
operations after an event has transpired.
Security breaches rarely affect only one part
of a business. Rather, they’re more likely to
impact several areas and may even affect the
overall functionality and operability of a