Cyber ​​insurance is on the rise and organizational security postures must follow

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Despite all efforts to the contrary, ransomware, hacks and data breaches are more prevalent than ever.

Nearly 75% of global cyber risk decision makers report that their organization has experienced at least one cyberattack in the past year, and only 3% of respondents rated their organization's cyber hygiene as "excellent ". Additionally, recent research puts the average ransom payment at $211,529.

Naturally, to protect themselves, more and more organizations are investing – often significantly – in cyber insurance, especially since cyber security breaches, hacks and ransomware attacks often go unnoticed. included in traditional fonts.

Cyber ​​insurers, in turn, are raising their premiums and becoming increasingly selective about the companies they are willing to insure.

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“The cyber insurance market is changing,” said Jon Siegler, co-founder and chief product officer of governance, risk and compliance software company LogicGate. "Cyber ​​insurance companies aren't making as much money as they used to because they're paying more claims due to increased cyberattacks."

Even when providing coverage, insurers carve it up based on the risk position of the business.

“Cyber ​​insurance will not reimburse you for related incidents if you fail to update software or use an outdated patch,” Siegler said.

Cyber ​​insurance is much like other insurance coverage. It is a way to manage risks and losses related to certain events - in this case, cyber threats.

While it varies by carrier and amount carried, policies can cover costs associated with business email compromise, ransomware attacks, phishing attacks, and other engineering attacks social,” explained Jennifer Mulvihill, business development manager for cyber insurance and the cyber defense platform company’s legal department. BlueSeeing. Policies can also provide both first-party and third-party coverage, she said.

In total, the cyber insurance market is expected to reach $25 billion by 2026, according to an annual cyber report from the Howden Group. The National Association of Insurance Commissioners also reports that cyber insurance premiums collected by the largest U.S. insurance companies in 2021 increased 92% year-over-year.

This trend will only continue, predicted Norman Krumberg, chief executive of cybersecurity firm NetSPI. Today's market of unpredictable threats makes it difficult for insurers to accurately assess the maturity of an organization's IT management and security control. He predicts that it will be increasingly difficult to receive payments for claims, especially if controls fail.

In addition, cyber...