Hi, I'm Ran Levy.

Welcome back to Malicious Life in collaboration with Cyberism. They've got insurance for everything.

You can get an insurance policy on your house, your car, everything else you own, your business and its

employees, your health, even your death. Just about anything of value that can be lost or damaged can be insured.

It stands to reason then that computer systems, network infrastructure,

physical machines and data,

should also be insured in case of loss or damage.

In past episodes of our podcast we've told stories where huge amounts of money are

stolen from private companies. There was Valve which claimed to have lost $250 million in revenue to a loan hacker, and

Mount Gox, which lost 1 million Bitcoin under their control. Target owed customers $18.5 million in legal damages after their payment systems got hacked.

In none of these cases had we mentioned, even thought to mention,

that these companies could have in theory largely covered those losses with one simple solution.

The solution is so simple in fact that we are left asking

what's wrong with cyber insurance

that it's not much more prevalent in the world today.

Well one obvious answer is that cyberspace is risky for insurance companies.

Typically, cyber attacks don't occur in a vacuum.

When we talk about Equifax or Target or Mount Gocks on malicious life,

we do so because these are outstanding stories and not the norm.

Usually, hackers spread their attacks to hundreds, even thousands of victims.

Think Gozy or Conficher or the Melissa virus. of during the confaker outbreak, they'd have been on the hook for lots and lots of huge payments

all coming in at once.

...