MSP Confidential: Cyber Insurance is Broken — with Cork CEO Carlson Choi

This interview with Carlson Choi, CEO of Cork, covers several critical points regarding the challenges and solutions in cyber insurance for MSPs. Here's a summary of the key topics discussed:

Cyber Insurance Problems: Carlson outlines three main issues with the current cyber insurance model for MSPs:
1) Static Underwriting in a Dynamic Environment: The process relies on long survey forms that capture a moment in time, inadequate for the constantly changing digital landscape.
2) Lack of Proactive Measures: Once a policy is written, there's little done to improve security hygiene or help MSPs protect their clients until the next policy renewal.
3) Exclusion of MSPs from Economic Equations: MSPs are often left out financially and operationally from the cyber insurance process, despite being crucial in managing and securing client environments.

Cork's Approach: Cork addresses these issues by integrating with MSPs' existing security stacks to provide dynamic, ongoing risk assessment and management. This model allows for real-time adjustments to policies and practices, reflecting the actual security posture of MSP clients.

Cyber Warranty vs. Cyber Insurance: Cork offers a "cyber warranty" rather than traditional cyber insurance. This model focuses on covering specific, performance-related aspects of cybersecurity measures without requiring MSPs to become licensed insurance brokers. It complements rather than replaces traditional cyber insurance, potentially leading to lower overall costs and better coverage for MSP clients.

Claim and Settlement Process: Cork's model aims for simplicity and speed in the claims process, providing immediate funds to address immediate needs and ensuring claims are settled quickly. This contrasts with the often lengthy and complex claims process in traditional cyber insurance.

Partnership with Authorities and Hacker Community: Cork collaborates with authorities and the ethical hacker community to stay ahead of cybersecurity threats. This proactive approach involves sharing knowledge and strategies to prevent attacks and manage risks more effectively.

Future of Cyber Insurance: The interview touches on the need for the cyber insurance industry to evolve. This includes better risk assessment methods, potentially through technology and real-time data analysis, and a move towards more standardized policies that reflect the dynamic nature of cyber risks.

Carlson emphasizes the importance of proactive, technology-driven solutions in managing cyber risks and the role of MSPs in implementing these solutions to protect their clients effectively. Cork's model represents a shift towards a more adaptive, MSP-friendly approach to cyber risk management and financial coverage.

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