Question 98

Loss of future competitiveness is typically excluded under a cyber risk insurance policy.

Cyber risk insurance policies commonly do not cover losses related to future competitiveness, as these losses are considered indirect and not a direct result of a cyber incident.

A) Loss of future competitiveness

This option is correct because cyber risk insurance policies generally exclude losses tied to future competitiveness. Such losses are often viewed as intangible and difficult to quantify, making them non-eligible for coverage under standard insurance terms.

B) Theft of data resulting in a privacy breach

Option B is incorrect because theft of data that leads to a privacy breach is typically covered by cyber risk insurance policies. These policies are designed to address the financial implications of data breaches, including legal fees and notification costs.

C) Unintentional transmission of a computer virus

Option C is incorrect as well, as many cyber risk insurance policies provide coverage for incidents involving the unintentional transmission of viruses. This type of exposure falls within the scope of cybersecurity risks that the policies aim to mitigate.

D) Unavailable network systems due to security failure

This option is also incorrect. Policies frequently cover losses related to the unavailability of network systems resulting from security failures, as these are direct consequences of cyber incidents that insurance is intended to address.

Conclusion

In summary, the exclusion of loss of future competitiveness from cyber risk insurance policies stems from its intangible nature, making it difficult to quantify and assess in terms of risk. All other options represent direct and quantifiable risks that cyber insurance is designed to cover, thus confirming that they do not fit the exclusion criteria.