"Many insurers are worried about underpricing (of policies)," says Stephen Boyer. He is not sure the insurance industry could withstand "a Hurricane Andrew-size data breach." Right now, most insurance companies are writing policies without the means to accurately assess a company's risk because historical data and historical precedent is nonexistent, says Boyer. BitSight is only working with seven out of the 10 largest insurers, but the majority of insurers that write cyber policies still assess a customer's risk by asking customers to fill out questionnaires about what types of data a company handles and its security protocols. Boyer says there are only 70 insurers in total that currently write cyber insurance and many bundle it with other types of coverage to keep customers.
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