Episode description

In this episode of Cyber Focus, Frank Cilluffo explores the evolving landscape of cyber insurance with Matt McCabe. McCabe shares the history, current state, and future challenges of cyber insurance, emphasizing its critical role in national resilience against cyber threats. The discussion covers the fundamental coverage aspects of cyber insurance, the impact of ransomware, and the need for a federal backstop for catastrophic cyber incidents. McCabe also touches on the importance of collaboration between industry and government to enhance national cyber resilience.

Main Topics: 

• Evolution of Cyber Insurance
• Impact of Ransomware and Coverage Aspects
• Market Growth and Nation-State Attacks
• Challenges, Solutions, and Federal Backstop Framework
• Future of Cyber Insurance and National Security

Key Quotes:

"Ransomware democratized cyber risk and cyber threats because the reality is everyone has got a bullseye on their target to one extent or another." - Frank Cilluffo"

"Cyber insurance routinely covers acts by nation-states, but the magnitude of losses is sometimes too great for the industry to absorb." - Matt McCabe

"This is not an insurance industry issue. This is a national economic security issue." - Matt McCabe​

"There's no building... resilience after the fact. The time to do it is now. Ultimately, if we were to have the incident, the government would be involved... But if you're doing it after the fact, it's a hurried response. It tends to increase the risk of waste, fraud and abuse." - Matt McCabe

Relevant Links:

https://www.guycarp.com/
https://www.cisa.gov/
https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program

Matt McCabe is the Managing Director at Guy Carpenter, specializing in cyber risk and insurance. With extensive experience in the industry, McCabe has served in various roles, including on Capitol Hill for the House Homeland Security Committee and in the Bush White House. His expertise lies in bridging the gap between cyber risk and insurance, contributing significantly to national discussions on cyber resilience.