Cyber insurance is intended to protect businesses from internet-based security risks, such as data loss, extortion, theft, hacking, and denial of service attacks — and especially ransomware. Cyber insurance can literally mean the difference between a business being put out of business due to a cyber attack or surviving.
Cyber insurance is currently a hot topic mostly due to the risk and rising frequency of ransomware attacks. Ransomware is at an all-time high, and this is creating greater demand for cyber insurance. However, the insurance industry is struggling to keep pace with both the rising demand for cyber insurance and increased attacks, and this is threatening to change the insurance industry as a whole. In the face of this challenge, the insurance industry is struggling to adapt its offerings to meet the needs of cyber insurance policyholders, and it is likely that cyber insurance premiums will only go up..
While the world of cyber insurance is currently in flux, ransomware is at an incredible high, with some reports showing a 485% increase in attacks in 2020 vs. 2019. In addition, payments made to cyber criminals have tripled in the past two years. What does this mean? Cyber criminals are winning, and they’re not slowing down anytime soon. With payments often in the millions of dollars, why would they? What’s worse is that the success of current cyber criminals is only attracting more competitors to the scene.
With huge risks present and only growing, the need for businesses of all sizes to have cyber insurance is more significant than ever.
While we know that the current cyber insurance situation is very unstable, we believe that insurance companies will figure out a way to provide the cyber liability offerings the market demands, but (and a big “but“), at a high cost. Businesses best are ready. Cyber insurance is not headed in a cheap direction. Businesses can also expect that insurance companies will demand that they take many active measures to reduce their risks of being attacked as a condition for being insured.
Does your business have cyber insurance? Wondering if you should acquire coverage? Know what preventative measures to take to be eligible for cyber insurance coverage? We help all of our clients determine the best solutions for their business, whether cyber insurance or something else. If we can help, get in touch here.