Increased cyber attacks in recent years have led to significant changes in cyber insurance – particularly, demand in the marketplace and difficulty in obtaining coverage.
Key Takeaways:
- As cyberattacks become increasingly frequent and costly, firms have begun to value cyber insurance more highly than ever; demand has gone up as businesses realize the probability of larger losses has evolved alongside the likelihood of cyberattacks.
- The supply of cyber insurance has naturally tightened as more and more companies look to obtain a policy. To counteract this, insurers are implementing stricter guidelines and requiring more documentation from potential customers. As a result, premium rates have skyrocketed with no sign of stopping due to the growing sophistication and danger of cyberattacks.
- Coverage limits have shrunk due to higher levels of risk combined with rising premium rates; some providers are even reconsidering some lines of coverage altogether as a result of worsening losses.
- With less coverage, higher rates, and a lack of availability, self-insured retention is expected to become more popular. Bearing the weight of risks may be commonplace for firms that are struggling to find affordable coverage in a competitive and costly marketplace.
Why it Matters:
- Whether it’s through insurance, retention, or a mixture of both, it’s crucial that firms protect themselves against potential cyberattacks.
- Ensure that your company is receiving the best possible level of protection without overspending or taking on too much risk.
- Consulting a cybersecurity firm can shine a light on what your policy is getting right, what it isn’t, and where there is room to grow.
- Investing in other methods of security, such as training, testing, and other safety tools are a great way to behave proactively about your cyber endeavors.
Resources:
- Source: https://www.acaglobal.com/insights/cyber-insurance-top-five-trends-2022 utm_medium=email&utm_source=pardot&utm_campaign=2022-02-07-weekly-newsletter
- BW’s Additional Cyber Services: https://www.bwcyberservices.com/services/additional-cyber-services/
