Cyber-attacks are becoming more sophisticated and devastating, especially for small and medium enterprises (SMEs). With ransom demands rising and the cost of data breaches soaring, businesses are investing heavily in building their cyber defenses. However, cybersecurity is not bullet-proof. Buying a cyber risk insurance program can help outsource residual risk, and deploying multi-factor authentication is a prerequisite not only for getting coverage but also for lowering premiums.
Cyber insurance coverage? Through the roof these days. Also, coverage is not that easy to get. The many breaches and the dollar judgements handed down make cyber insurance another costly operating investment. A mid-sized client of mine, as an example, pays $1 million in annual cyber insurance costs just to do business with its commercial and government customers. The issue adds another twist to the topic of third-party risk.
Cyber insurance premiums are growing exponentially. It’s a dilemma that puts new financial pressures on organizations that are eager to protect their digital assets, but wary of increased spending. Part I of this cyber insurance blog series explored six reasons why cyber insurance costs are increasing so rapidly.
What’s happening today in the cyber insurance market is comparable to what happens to property insurance in a region that experiences a major hurricane or devastating flood. Not only are your company’s premiums increasing; oftentimes, insurers are scrutinizing your overall risk preparedness as part of their renewal process. In the first part of this two-part series, we’ll examine why cybersecurity insurance premiums have skyrocketed.
Data breaches and cybercrime are all too common. And in recent years, ransomware attacks have caused many organizations to face hefty extortion payments, legal fees, and reputational damage – not to mention the major headache that comes with each. Cyber insurance has become a powerful tool in the world of cyberattacks to help protect organizations from the implications of a ransomware attack, but many don’t understand what a cyber insurance policy actually covers.
Whether you own a small business or you are a member of a global enterprise you may be wondering whether or not cyber insurance is worth the investment. In this article I will cover the benefits of cyber insurance, how it differs from standard liability insurance, trends in the cyber insurance industry, and many other burning questions you’re likely to have when deciding if cyber insurance is right for your business.
The growth in frequency and severity of cyberattacks has caused organizations to rethink their security strategies. Major recent security threats, such as high-profile ransomware attacks and the Log4Shell vulnerabilities disclosed in 2021, have led to a greater focus on identity protection as adversaries rely on valid credentials to move laterally across target networks.
In our predictions, we highlight how cybersecurity will become a key area for insurers in 2022. The seriousness and growth in damages caused by cyberthreats has raised the price of policies sharply in 2021, according to experts. Given this situation, companies must either be prepared to take out new insurance at higher rates or expect a rise in the cost of their current policy. But what elements determine the cost of cyber insurance for insurers? There are 5 key factors, both internal and external.
Since the start of the pandemic, the cyber insurance industry has been facing its biggest challenge to date. A ransomware crime spree is demonstrating the speed and scale of cyber risk and how this type of risk is unlike any other insurable risk. The number of ransomware attacks increased by 150%. Total ransoms paid are up 311%. The dramatic rise in frequency and severity resulted in a record high loss ratio of 67% for insurance carriers.