While cyber insurance will continue to exist, it will cost more and cover less — and that’s changing the risk your company faces.
Just when we were getting ready for the holiday season, along came the security issues in Log4j. Security professionals across the world jumped into action to understand their risk levels, implement patches on any internal software, and deploy product versions from their suppliers that had been updated. This will continue this year, based on conversations with CISOs and security teams.
Behind the technical issues around the software supply chain and internal applications, there is also a business risk management element — for example, how a company manages risk to its operations using tools like cyber insurance to complement its security processes. In the event of a problem, cyber insurance should cover the costs to recover data, rebuild applications, and get operations running as normal again.
What Is the Role for Cyber Insurance Over Time?
Cyber insurance is a significant industry and growing fast — according to GlobalData, it was worth $7 billion in gross written premiums in 2020. The cyber-insurance market is expected to reach $20.6 billion by 2025. Over the past few years, the cyber-insurance market was competitive, so premiums were low and policies were comprehensive. Over the past year, that has changed — the volume of claims has gone up and led to more payouts, Read more:https://bit.ly/3pZbPtf