2022 Predictions #5 - Companies Increase Cyber Insurance Despite Soaring Costs

Since the astronomical success of ransomware starting back in 2013, cybersecurity insurers have realized that payout costs to cover clients against these threats have increased dramatically. In fact, according to a report from S&P Global, cyber insurers’ loss ratio increased for the third consecutive year in 2020 by 25 points, or more than 72%. This resulted in premiums for stand-alone cyber insurance policies to increase 28.6% in 2020 to $1.62 billion USD. As a result, they have greatly increased the cybersecurity requirements for customers. Not only has the price of insurance increased, but insurers now actively scan and audit the security of clients before providing cybersecurity-related coverage.

First-Party vs Third-Party Cyber Insurance: What's the Difference?

Often it's not a question of if your business will experience a data breach, but when. Hackers are always looking for new ways to take advantage of weak networks or trick employees into falling prey to their schemes. And if your business operates computer systems or handles sensitive data regularly, you are at risk. Having the right insurance coverage to provide aid in the event of a cyber attack can save your business from expensive lawsuits and reputational damage.

Cyber Insurance: New Coverage Restrictions Expected in 2022

Get ready for upcoming changes to cyber insurance policies. Due to risk associated with the increase in remote work, insurers are more likely to initiate in-depth cybersecurity risk analyses of companies seeking to purchase or renew policies, the Wall Street Journal reports. The adoption of stringent privacy regulations in the United States and abroad could also justify additional scrutiny by insurance companies during the initial underwriting and renewal process.

Recommendations for Fulfilling the Potentials of Cyber Insurance

Cyber insurance has great potentials in improving cybersecurity practices and protecting organizations against the impact of security incidents, but these potentials “have yet to fully materialize.” This is the key highlight of a recent report developed by the Royal United Services Institute for Defence and Security Studies (RUSI) and the University of Kent in the UK. The report provides a comprehensive list of recommendations for both governments and organizations.

The Game Changer to Qualify for Cyber Insurance

Protecting sensitive data with multi-factor authentication (MFA) has become a requirement for cyber insurance policies. Recent attacks (SolarWinds, Colonial Pipeline, Kaseya) and mandates like the White House’s Executive Order to implement MFA in 180 days or less, are proving that identity and password-related vulnerabilities are a top security threat, and one where you can lose a lot of money.

10 Essential Cyber Security Controls for Increased Resilience (and Better Cyber Insurance ...

While threat actors continue to vary attack methods, these 10 essential cyber security controls can significantly improve your security posture, therefore making it harder for cyber criminals to compromise your network and increasing your opportunities for cyber insurance coverage.

Arctic Wolf Survey Unveils Where Firms Now Stand on Cyber Insurance

This August we commissioned a survey of over 1,400 senior IT decision-makers and business executives in the US, UK, and Canada. Our initial publication of the findings dug deep into their thoughts and attitudes on many issues, including nation-state attacks and hybrid work. In addition, however, our survey featured several questions on cyber insurance. So in this article, we’ll provide the cyber insurance insights shared by the survey respondents.

Mapping the Attack Surface for Insurance Applications

As insurance organizations look to attract and engage customers, the growing use of web applications has increased their cyber exposure and the risks of cyberattacks. In this benchmark study, we analyzed the attack surface of the top 10 insurers in Europe to highlight the common attack vectors and security weaknesses that could be exploited – from page creation method to vulnerable components – and our top tips for reducing web application security risks.

5 Key Cybersecurity Considerations for Insurance Companies

The connected nature of business environments has increased the severity and frequency of cyberattacks in the insurance sector. Insurance companies face a greater threat than most industries because they deal with sensitive and valuable data stemming from numerous avenues. This has resulted in several high-profile cyberattacks on insurance providers over the past few years.