Cyber FICO Ratings Could Benefit Insurance Underwriting in Multiple Ways
Companies are increasingly pursuing management of cyber risk rather than eliminating it outright, as cyber incidents become more prolific, widespread and hard to stop.
In this environment, FICO and other entities are promoting new methods of rating companies’ cyber risk and resiliency with the goal of promoting informed decision-making. The growing importance of such ratings was recently recognized by the U.S. Chamber of Commerce, which published “Principles for Fair and Accurate Security Ratings” in June 2017. Akin Gump recently published an article that discusses the growing role of security ratings in driving business strategy and the need for more uniform standards among ratings companies. We outline how cybersecurity ratings for companies carried out by outside, independent ratings companies could help support informed underwriting and better risk management.
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|Michelle A. Reed