In-Reply-To: <[EMAIL PROTECTED]>

Jeff and Nathan make some interesting points. 
There is likely a market there, but it is not clear who
is buying and who is selling as of yet.

I would add that the significant compliating factor for
IT security insurance is the lack of loss data which
would  allow the creation of a viable business model. 
With a large amount of loss information,  risk can be
quantized with fiducial calculations.  Unfortunately,
seldom is actual loss due to hacking and other security
related mechanisms well characterized, nor to companies
want to share that information with an underwriter.
The positive side is that estimates or a fixed dollar
amount can be ascribed to an insurable loss (Betty
Grable insured her legs...).  Therefore, a company
could transfer risk to an insurer if they decide that
an accident or incident could require some particular
dollar figure.

Bruce Schneier touches on this subject in this
presentation I heard him give last May.  He's right on
the mark and I agree with his arguments.
http://www.counterpane.com/presentation4.pdf

Also, Heather Eikenberry has written a nice paper (from
Jan 2001) on the subject. 
http://www.sans.org/rr/casestudies/insurance.php

Cheers,

Tom

>
>Nathan,
>
>You've just described the tip of a giant iceberg that,
so far, hasn't 
>made it onto the mainstream radar yet.
>I don't have a great deal of insight, but have been
following 
>developments in this space.  More and more IT security 
>groups/departments/managers are starting to realize
security is a risk 
>and exposure issue, not a technology issue.  I believe
that as this 
>trend grows, alternative risk management solutions
such as cyber 
>insurance will become more common.  I think the
challenge is the 
>development of universally accepted standards that
define just what 
>constitutes an acceptable enterprise security program.
 However, many 
>factors make this very difficult. A few are;  the
constant emergence of 
>new technologies, the broad landscape of diverse and
disparate systems, 
>inherently flawed commercial software applications,
and vertical 
>specific compliance legislation.
>
>Right now it's a big gordian knot without any easily
defined path 
>towards sorting it out.  This is changing though, and
it will be 
>interesting to see how things shake out.
>
>Jeff
>
>ps - If I come across any interesting reference
material, I'll email you 
>offline
>
>Nathan Ouellette wrote:
>
>>I've posted my resume to this thread before, so I
won't bother with any
>>repeat details, but I was wondering if anyone has any
leads regarding
>>risk technology or specifically 'cyber policies' and
insurance related
>>endeavors.  I'm currently looking for work in this
field. 
>>
>>I have a pretty solid IT and security background,
specifically a lot of
>>time spent in the insurance industry.  I've recently
landed a
>>semi-techincal role with a Risk Management firm and
deal specifically
>>with liability and loss mitigation.  I've been
keeping abreast on the
>>latest insurance news and I see that more and more
carriers are
>>providing 'cyber policies' to their clients.  From
what I gather,
>>premiums and revenue for this coverage is expected to
skyrocket in the
>>near future.  I've also read that several carriers
are requiring their
>>clients to 'prove' they are minimizing their risk by
tightening their
>>systems and locking down security, this of course is
the equivelent of
>>leading a healthy lifestyle in order to obtain a
smaller premium on your
>>life insurance policies.  
>>
>>The floor that I work on just happens to be divided
up between my group
>>and several other insurance brokerage groups.  On a
daily basis I hear
>>clients asking the brokers to find them a policy for
this type of
>>coverage, but most of the sales people seem clueless
as to what's going
>>on in the insurance/risk marketplace with these types
of policies.  This
>>has really piqued my interest about this new market
and I am now
>>actively seeking employment within it's realm.
>>
>>My query is to anyone familiar with this line of
business.  This could
>>be a great trend for security experts as more and
more companies might
>>be looking for experts to audit client networks in
order to be approved
>>for coverage (even better, IT candidates who have an
insurance
>>background).  Or perhaps to brokerage houses acting
as the middleman
>>between the carrier and the client.  Does anyone have
any sort of leads
>>or perhaps a good resource for finding careers or
perhaps introducing
>>our talents to these insurance folks who might be
just now diving into
>>this new  marketplace?  
>>
>>      
>>Respectfully,
>>
>>Nathan Ouellette, MCSE, CISSP
>>Sterling Heights, MI
>>[EMAIL PROTECTED]
>>
>>
>>
>>
>>  
>>
>
>-- 
>Jeff Combs     
>Alta Associates, Inc.
>908-806-8442
>908-806-8443 fax
>[EMAIL PROTECTED]
>visit us at www.altaassociates.com
>
>
>
>
>

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