To get notices of new blogs via email, click here:

Thursday, August 18, 2011

U.K. Cyber Privateer Bonding Authority: Lloyd's

I suggested yesterday that there is an obvious candidate to function as the U.K. CPBA (Cyber Privateer Bonding Authority), should my Brit mates perfect an E-petition that makes it through the screening process and actually goes online. While I'm waiting to see if an E-petition actually makes it to the signature stage, why not share not only the name of the candidate but my pro forma thoughts for a whole new industry?

My suggestion for the U.K. CPBA lead underwriter is…Lloyd's of London. The CPBA is nothing more than an enabling insurance vehicle to make the market in a new financial instrument. Not only could licensed cyber privateers buy their bonds from Lloyd's (no inexperienced yahoos need apply), but individuals and corporations could buy cyber-intrusion insurance coverage if they meet well defined security-audit conditions. Talk about a growth market!

Remember, the bonding authority will protect the world from what I referred to in my November 18th post last year as the "inept French privateer." Because the cyber privateer must operate in conformance with The Cyber Privateer Code. Period. Anybody operating as a cyber privateer had jolly well be licensed and bonded, or they are going to do some serious jail time. Furthermore, if the Bonding Authority blows it and lets a schmuck cyber privateer muck it up and doesn't make restitution within ten days of the parley, then the insurance liabilities to the bonding authority will make Hurricane Katrina's losses seem like a minor cloud burst. I might as well get specific and stop beating around the bush in my June 8th pro forma prediction for the first coordinated cyber privateering adventure. The first shot should yield at least $50 billion US. Which means $25 billion goes into the U.K. Treasury, $22.5 billion to the cyber privateer organization, and a $2.5 billion fee to Lloyd's. But if the cyber privateer blows it, a $50 billion mistake means Lloyd's will be responsible for a $5 trillion restitution.

So, mates, do you think Lloyd's will pull the trigger on anything less than a sure thing?

Neither do I.

No comments:

Post a Comment

Implementation suggestions for THE MORGAN DOCTRINE are most welcome. What are the "Got'chas!"? What questions would some future Cyber Privateering Czar have to answer about this in a Senate confirmation hearing?