Cloud Insurance Services turned out

As cloud computing moves into more companies, business starts looking for ways to mitigate potential risks. Companies are becoming more proficient in testing providers ' business processes and measuring their robustness, but data show they are still concerned about cloud security and reliability issues. Recently, companies began to adopt cloud insurance to protect themselves from losses. While these insurance policies have just emerged, some hurdles have been cleared for success in the market.

For over more than 10 years, insurers have provided companies with plans to cover various types of it downtime: business opportunities that violate confidentiality, legal action, and loss of system downtime. In 2011, the Securities and Exchange Commission issued a decree requiring domestic companies to provide shareholders with open and possible it risks in order to speed up the repair of losses.

Putting it in one basket is called "network insurance," but it's not clear whether these insurance coverage goes to cloud failure.

"The network insurance policy is for the local system," Doug Weeden, who is director of project management at Cloudinsure of Cyberriskpartners Limited. As a result, some network liability policies exclude third party losses, such as cloud providers, but others include provisions that protect customers regardless of where the data is. Therefore, the business needs to review its strategy carefully to see if there are cloud coverage included.

It is also interesting that such strategies have begun to evolve and that much of it is developing. According to a survey by global risk advisor, insurance and Reinsurance Willis Group Holdings, we find that most companies do not buy insurance for the cloud or other it gaps. As for network Insurance protection, the fund industry companies reported the highest level of insurance is 33%, public institutions followed by 15%, banks and integrated large enterprises for 14%. The insurance and technology industries have disclosed that it insurance purchases range from 11% of the company, but most companies do not.

However, the growing sophistication and interest growth of the market is also a signal of cloud insurance reform. "Five years ago, there was a dozen network insurance providers; now more than 70," said Tom Srail, senior vice president of Willis Technology practice. For example, the Chubb Insurance Company entered the online insurance market in August 2013.

The current low cloud-insurance penetration and emerging demand may attract more market participants, such as the Cloudinsure, created in 2010. In addition, the community service provider Mspalliance started in 2013 and the Middleman Lockton Affinity Co., Ltd. to form a partner to provide cloud insurance. In June, Liberty Mutual, an insurance provider, began offering cloud insurance strategies as part of its partner Cloudinsure.

Currently, it insurance is available primarily through insurers and is typically procured by a risk manager or chief financial officer. As a result, its use is limited to large enterprises and can understand risks and is willing to pay expensive insurance policies. The insurance policy begins with a five-digit range and can exceed 1 million, depending mainly on the risk factors. In some cases, companies have suffered billions of data leaks, involving tens of millions of of records.

In the long run, the market is expected to expand to smaller companies.

"The insurance industry now has enough experience to understand what risks are, so they are in a good position to price their strategies and cover possible debt," Srail said. Ultimately, insurance becomes an available option for cloud providers, including in service level agreements.