This project will pilot new approaches to improve the security of Industrial IoT (IIoT) devices and systems using insurance-based incentives.
The industrial internet represents one of the most promising and transformative applications of IoT. IIoT is expected to dramatically alter manufacturing, energy, agriculture, transportation and other industrial sectors of the economy which, together, account for nearly two-thirds of the global gross domestic product (GDP).
IIoT also introduces a vast array of new vulnerabilities including threats to public safety, physical harm, and catastrophic systemic attacks on commonly shared public infrastructure. Unfortunately, the distributed nature of this risk can create barriers to responsible collective action. Moreover, many of the companies increasingly deploying and implementing IIoT have neither the capacity nor the long-term business strategy motivation to systematically address their cybersecurity vulnerabilities.
Insurance holds the potential to help align user, manufacturer, and implementer behavior with the broader public interest goals of safety and security. Lower insurance premiums have prompted millions of business and consumers to install fire and security systems and good driver discount programs create tangible economic incentives to engage in safer and more careful behavior. Though this project, the same incentive structure will be applied to insuring IIoT systems.