Feeds

Hacking hysteria invigorates insurance industry

And security firms are supportive -- shocker

  • alert
  • submit to reddit

New hybrid storage solutions

The dividends of this month's DDoS attacks against high-profile sites Yahoo, eBay, Amazon and others just keep multiplying. Now it seems the insurance industry is going to hand the security industry a tidy windfall. Hewlett-Packard last week began offering reduced-rate hacker insurance. Meanwhile, online security outfit Network Associates is now enthusiastically recommending such insurance, Reuters reports. And we can see why they would. Surely a policy is going to require routine security audits, providing heaps of lucrative contracts for security firms. Garrett Koehm, an executive vice president for Tri-City Brokerage, says losses to hack attacks are not always covered in a company's primary insurance package, and that Internet businesses are taking a closer look at what their existing coverage includes. Tri-City, which offers coverage through Lloyds of London, also advises Internet companies to protect themselves against corporate espionage and sabotage to their systems by disgruntled employees. "I'd say activity is up four or fivefold this month," Phil Hart, vice president of technology underwriting at American International Group, reckons. In January AIG began offering insurance for losses of up to $25 million resulting from hacking incidents, but initially got a lukewarm response. Now things are looking up thanks to the DDoS media frenzy. We're just surprised it's taken this long for the high-tech insurance and security industries to start scratching each other's backs. Surely, this could be the start of a beautiful friendship. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.