Globally Cyber insurance market is at $7.8 billion in 2020 and expected to grow to $ 20 billion by 2025. One in six business in US were attacked by a cyber-crime and half of them paid ransom. In 2020 alone, data breaches exposed over 37 billion personal records, 82 percent of which came from only five breaches.4 Data breaches affect not only companies and organizations, but also the people whose information is in the exposed records. On average, the FBI received 2,000 cybercrime reports per day in 2020.
The COVID-19 pandemic also contributed to the fast growth of the cyber insurance as well as cyber-attack market. The pandemic accelerated the digitalization of business operations, as it forced businesses to adopt work-from-home culture. Unfortunately, the abrupt implementation of these setups created a easier atmosphere for cyber attackers.
While cyber security insurance is still moderately new, demand for cover is increasing rapidly. Against a backdrop of rising cyber-attacks and increased regulations, organizations are feeling the pressure to ensure they are protected against Cyber molest and data theft & loss.
Globally, over 154 countries have enacted cyber legislation that either mandates or strongly recommends cyber protection, including the need for insurance. For insurance providers, this is a rare opportunity for growth and innovation.
Cyber insurance generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health Cyber insurance – also known as cyber-liability insurance – is an insurance policy that helps protect organizations from the fallout from cyber-attacks and hacking threats. Having a cyber-insurance policy can help minimize business disruption during a cyber-incident and its aftermath, as well as potentially covering the financial cost of some elements of dealing with the attack and recovering from it.
“The formal definition of cyber insurance is essentially a contract between an insurer and a company to protect against losses that are related to computer- or network-based incidents,” explains Juergen Weiss, head of global financial services research and advisory at tech analyst Gartner.
In today’s business climate, it’s hard to find a business that doesn’t need cyber liability insurance. If you run a business that stores sensitive client, customer, and partner data, you need it. If your business supports electronic transactions, you definitely need it.
One of the greatest myths related to cybersecurity is that cybercriminals only target large corporations because that’s where they can steal the most money and do the most damage. That really couldn’t be farther from the truth.
Some of the key business characteristics insurers will need to investigate and identify before being able to calculate your business’s cyber liability insurance premium
Size and Industry
Amount and Sensitivity of Data
Strength of Security Measures
Having an in-house security team that is dedicated to protecting your business from cyber threats is a smart investment, especially in high-risk industries. Another important aspect of cybercrime risk mitigation is making sure that your business partners and any third parties that have access to your networks are also well protected and don’t pose a security threat. Call us at CompareAquote.com to assess your businesses threat to exposure and cyber liability assessment.