Banks insure against cyber risk, but rarely claim

Big banks are increasingly insuring against cyber risks, as revealed by a recent Risk Benchmarking study. Despite aggressively negotiating the cost of coverage and looking for ways to offset regulatory capital requirements, these institutions seldom make claims on their cyber insurance policies. This behavior suggests that while banks are proactive in preparing for potential cyber threats, they may not fully anticipate or experience the actual events that would trigger claims. The implications extend to how financial institutions manage risk and the broader market's understanding of cyber insurance's effectiveness.