Security specialist Eye Security will independently offer cyber insurance. The Dutch company was recently licensed to do so by the AFM, the national financial supervisor. The step is seen as both innovative and risky by industry peers.
The market for cyber insurances is growing worldwide. Cyber insurances allow companies to cover themselves against the consequences of cyberattacks. The insurer comes to the rescue in the event of a (ransomware) attack and provides compensation for the ransom demanded.
Due to the growing number and increasing damage of attacks, insurers have recently become less inclined to take on new customers. Customers who ask for a quote go through a series of technical questions. Those that don’t meet the conditions do not receive a quote.
Eye Security insurance policy
Eye Security wants to change things. According to Dutch media, the security specialist is going to offer its own cyber insurance. The security specialist recently received a licence to do so from the AFM, the national financial supervisory authority.
Eye Security’s insurance focuses mainly on SMEs with a turnover of up to 250 million euros. Interested parties do not receive technical questions, but a software program. The software continuously checks whether the insured company makes backups and installs security updates. The solution also offers built-in protection against cyber attacks and collects information about the various activities that take place within the insured company’s network.
According to the security specialist, the software makes it possible to accurately assess whether a customer meets the conditions for insurance. Companies can be insured and secured within a single day. The software should lead to lower premiums.
Conflict of interest
Experts view Eye Security’s approach as innovative. The company is the first security specialist in Europe to start insuring customers itself. Competitors compare the step with the disruptive character that Tesla has in the automotive market.
Others warn about possible conflicts of interest. They wonder how the security company will deal with the role of both a security service provider and an insurer. In the role of an insurer, Eye Security cannot renew contracts with customers who maintain a vulnerable network. In the role of a service provider, however, it’s supposed to offer solutions.