Cyber Security Insurance-Related Industry

The introduction to the Bruce Schneier’s book Secrets & Lies alluded to an industry that will be booming in the upcoming years,  insurance company-driven Cyber Security Providers.

Mr. Schneier pointed out that many companies and organizations don’t invest enough money and effort into protecting their digital data. Making sure that data is safe from potential attack or theft is a new concept to non-tech savvy business leaders, and one that isn’t at the top of many company’s priority list.  Unfortunately attacks are becoming more widespread and more complex, so the likelihood that a business will be attacked increases daily.  To off-set the threat and the possible losses incurred from an attack, some business owners are turning to insurance policies.

Mr. Schneier feels that as more business owners turn to cyber insurance policies, the insurance industry will push for cyber security providers to supply better services (to better protect business owners).  The demand for services will increase, and so will the need for some sort of industry standards for cyber security providers.  Looking forward from Mr. Schneier’s viewpoints, one can see a new service industry spring up to meet the needs of standardized and strong cyber security services to meet insurance company requirements.

A similar “cottage-industry” boom occurred in the late 1990s as companies rushed to prepare their computer systems for Y2K, but that was a temporary surge in demand.  Conversely, cyber crime and attacks will only increase as global economies suffer and people become more desperate to find alternative sources of income.  To see how important it is, just look at the Information, Security and Forensics program that is growing in popularity here at RIT.  The emergence of the Cyber Insurance industry will increase the need for more highly trained professional, and should lead to plenty of long-term employment opportunities for people with the right skill set.