Jacobo Bazbaz Sacal on the Importance of Cyber Insurance for Advancing Tech
Autonomous driving has helped reduce costs and risks in transportation. However it also poses consequent challenges, says insurance specialist and Interproteccion director, Jacobo Bazbaz Sacal. Economies have sought ways to innovate to stay viable during the pandemic, including the development of driverless cars. However, advances such as AI and machine learning open companies up to unexpected sources of corruption, deception or evasion. Areas of risk also cover cybersecurity, extortion and intellectual property.
— Jacobo Bazbaz Sacal (@JacoboBazbazMX) August 31, 2020
Cyber insurance and other damage-limiting tools and legal measures, such as anti-hacking laws or copyright or liability, have yet to keep up with industry changes. And where coverage will be most in demand is still unknown. AI and ML are inherently fragile, says Jacobo Bazbaz Sacal. And 25 out of 28 Fortune 500 companies still have no protection plan. Meanwhile, technology keeps moving. At the moment, cyber insurance covers privacy liability, information security and business interruption, says Jacobo Bazbaz Sacal. It doesn’t, however, protect against personal injury, brand damage or property damage.
According to Jacobo Bazbaz Sacal, the future of insurance will be a combination of traditional software-related insurance, machine learning insurance and transportation insurance. AI use has increased three-fold over the recent three years, say Bazbaz Sacal. Insurers like Interproteccion, a leading Mexican insurance company, see cyber insurance as the next big market for small and medium businesses that stay ahead of the trends.