Insurance Companies Struggle With The Virus Question
from the what-to-do,-what-to-do dept
In California, it’s pretty difficult to get covered by earthquake insurance, because events like earthquakes ruin the basic mathematics of how insurance works. That is, if an earthquake happened, everyone would make insurance claims at once. Insurance companies work by spreading the risk across a large enough population that should a claimable event occur, enough people aren’t impacted to pay for those that were. However, when it comes to computer security, a situation like a virus is becoming even more difficult to insure than an earthquake. At least an earthquake is limited to a specific geographical region. In the case of a computer virus that can spread around the globe pretty quickly, knocking out all kinds of machines, it’s pretty damn difficult to “spread the risk” and many insurance companies just don’t bother.