It's not money but inertia of very large systems. All these password changes cost money as well. If anything it's a market failure that insurance companies seem to have too little incentive to update their security requirements. This would likely be solved by reducing friction with both evaluating insurers in detail and switching between them.
If you, the person in charge of these decisions, allow an incumbent policy - even a bad one - to stand, then if something goes wrong you can blame the policy. If you change the policy, though, then you're at risk of being held personally responsible if something goes wrong. Even if the change isn't related to the problem.
It's not just cybersecurity. I have a family member who was a medical director, and ran up against it whenever he wanted to update hospital policies and standards of care to reflect new findings. Legal would throw a shitfit about it every time. With the way tort law in the US works, the solution to the trolley problem is always "don't throw the switch" because as soon as you touch it you're involved and can be held responsible for what happens.
It's not money but inertia of very large systems. All these password changes cost money as well. If anything it's a market failure that insurance companies seem to have too little incentive to update their security requirements. This would likely be solved by reducing friction with both evaluating insurers in detail and switching between them.
It's also a sort of moral hazard problem.
If you, the person in charge of these decisions, allow an incumbent policy - even a bad one - to stand, then if something goes wrong you can blame the policy. If you change the policy, though, then you're at risk of being held personally responsible if something goes wrong. Even if the change isn't related to the problem.
It's not just cybersecurity. I have a family member who was a medical director, and ran up against it whenever he wanted to update hospital policies and standards of care to reflect new findings. Legal would throw a shitfit about it every time. With the way tort law in the US works, the solution to the trolley problem is always "don't throw the switch" because as soon as you touch it you're involved and can be held responsible for what happens.
I love the analogy to the trolley problem. It sounds like this logic would literally hold up in a real-life trolley problem in regards to the law.
"No-one ever got fired for buying IBM" etc.
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Not money; incentives