Cyber insurance still gets underwritten largely on paper: a questionnaire confirming that controls exist, not evidence that they work. SimSpace CFO James Gerber argues in Insurance Thought Leadership for efficacy-based underwriting, pricing risk on how security measures actually perform under realistic stress testing. The numbers behind his case are unforgiving. Global cyberattack costs are projected to climb from $9.22 trillion in 2024 to $13.82 trillion by 2028, the average data breach costs $4.5 million, and fewer than a quarter of organisations say they are extremely confident in their ability to respond. Only 55% carry any cyber coverage at all. Measured efficacy gives insurers a defensible basis for pricing and gives buyers a reason to improve.
