As cyber attacks increase, it becomes increasingly important for companies to protect themselves. Tom Merritt lists five things you need to know about cyber insurance.
Top 5 things to know about cyber insurance
As cyber attacks increase, it becomes increasingly important for companies to protect themselves. Tom Merritt lists five things you need to know about cyber insurance.
Cyber attacks are getting bigger and spending money on security is likely to be your top priority. Cyber insurance is growing and is not just an option, but a requirement for some companies. Here are five things to know about cyber insurance.
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- Cyber attacks are now the biggest business concern. A global investigation into cyber risk perception (PDF) from 2019, conducted by insurance advisor Marsh and technology giant Microsoft, discovered that cyber attacks overcome economic uncertainty, brand damage and government regulation, so that’s serious.
- More companies have cyber insurance than ever before. 47% of the organizations surveyed say they now have cyber insurance – that is a 34% increase in 2017. By 2020, gross written premiums for cyber insurance are expected to be just under $ 8 billion.
- Money makes a difference in your insurance decision. 57% of companies with a turnover of more than $ 1 billion had cyber insurance, compared to 36% of companies with a turnover of less than $ 100 million. And 63% of companies that express cyber risks economically have cyber insurance, compared to 46% of those who assess cyber risk qualitatively or not at all.
- The biggest risk covered by cyber insurance seems to be business email compromises. AIG said that email compromises accounted for 23% of all claims in cyber insurance in the EMEA region in 2017, followed by ransomware.
- Not all claims for cyber insurance are paid. Medic maker Merck and food giant Mondelez are prosecuting insurers for non-payment for damage caused by the NotPetya virus in 2017. NotPetya was considered by many insurance companies to be ‘an act of war’.
We will know that cyber insurance has really made it if it gets a sort of mascot – like a duck.
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