Cyber is Uninsurable

Posted 1.5.2023

Weaver Outrage Meter (Low)

Cyber is uninsurable according to the executive of a major insurance company. If cyber is uninsurable, then MSPs just got a lot more valuable. Here’s the conundrum. If MSPs represent aggregate risk to insurers yet are invaluable in the fight against cyber threats, and if cyber is becoming more uninsurable, then MSPs become even more critical in the cyber risk equation. Sound complicated? I’ll explain.

Most of the discussion around cyber risk insurance today can be boiled down to lack of visibility and understanding about the MSP market and IT threats in general. I don’t want to make too large of a generalized statement but there is a lot of ignorance out there. Trust me.

MSPs do present a threat surface for cyber criminals, just like every other entity. I can make a convincing argument as to why MSPs have less of an attack surface but that’s for another time. The point is, MSPs cannot be ignored when it comes to solving the cyber threat question. If the insurance industry is unable (at the moment) to answer this question, then maybe it’s up to the MSPs to do so.


  • Cyber underwriting flaws
  • Lack of visibility into cyber and MSP markets
  • Alternative cyber risk mitigation models

Cyber-Attacks Set To Become ‘Uninsurable’ | Silicon UK Tech News

Tags : cyber insurance

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