Cyber insurance is a relatively new product that is becoming more and more important because technology has become an integral part of our society and day-to-day operations. As a result, cyber coverage is available from numerous insurance providers and is fairly inexpensive to purchase. Cyber risk coverage started in the late 90’s because people believed that “Y2K” would affect the stability of computer and data systems across the globe. These policies will help the insured recover losses from the damage done by the cyber breach as well as the losses from the interruption of the company’s business operations. Businesses have bought these policies after hearing about the breaches that have occurred and the negative publicity that has resulted from them. According to the article, the largest cyber security breaches recently have affected Target and Ashley Madison. Both of these events have created a lot of backlash for both the companies as well as the companies’ consumers. The biggest problem that insurers are facing is that there is not as much data available to help them price these risks compared to other types of risk, such as car or home insurance. Even though insurers may not know how to price cyber risk insurance policies, they are still willing to enter the market. I chose this article because it is interesting to find out how risk management changes as new technology is invented. This article also made me think about how other types of coverage were created, such
