As the world becomes more and more digital, cyber insurance is becoming a hot topic. Unfortunately, the traditional ways that insurance companies calculate risk don’t really work in the digital realm. That’s where CyberTelematics come in. They’re a new way to better understand and measure the digital risks that businesses face, so they can get the insurance coverage they need.
But what the heck are CyberTelematics, you ask? In the insurance world, it’s a way to measure digital behavior over time, kind of like how auto insurance companies use telematics devices to track how people drive. But instead of tracking physical movement, CyberTelematics measures digital assets and usage to help insurance companies better understand the risks businesses face.
Digital assets are a bit of a fuzzy concept, but they’re basically anything that has value to an online business. This can include things like data, programs, branding, and communications. And here’s the thing: not all digital assets are created equal. Some are more important to a business’s operations than others. That’s why it’s crucial for businesses to create a digital assets inventory that organizes, measures, and calculates the importance of each asset.
So, how do CyberTelematics actually work? There are two parts to it: measuring the business’s behavior and the cyber activity around the business. The program that measures CyberTelematics is kind of like the telematics device that auto insurance companies use, but instead of measuring driving behavior, it measures digital risk behavior. This helps identify the risks that a business may pose to an insurance company in the long term.
CyberTelematics also look at what’s going on outside the business, like where the business is being attacked and how people are trying to break into the business’s digital assets. This helps identify the risks associated with other companies that might be connected to the business’s site as well.
The most important part of CyberTelematics is time. It needs time to watch the behavior of each asset and determine risk. But once it has had some time to observe, it can provide the business and its insurance company with valuable information about its risks. This gives the business time to correct and modify its operations to better mitigate its risks.
So, why is all of this important? Well, digital attacks are impossible to predict, but you can monitor and protect what you have, and ensure that when attacks come, you have the tools to take care of them. CyberTelematics can help businesses protect themselves, so they can focus on what they do best.