{"id":2487,"date":"2023-01-31T12:00:00","date_gmt":"2023-01-31T12:00:00","guid":{"rendered":"https:\/\/haloedsolutions.com\/?p=2487"},"modified":"2022-12-29T09:02:54","modified_gmt":"2022-12-29T16:02:54","slug":"whats-changing-in-the-cybersecurity-insurance-market","status":"publish","type":"post","link":"https:\/\/haloedsolutions.com\/whats-changing-in-the-cybersecurity-insurance-market\/","title":{"rendered":"What&#8217;s Changing in the Cybersecurity Insurance Market?"},"content":{"rendered":"<p>Cybersecurity insurance is still a pretty new concept for many SMBs. It was initially introduced in <a href=\"https:\/\/colony-west.com\/a-history-of-cyber-liability-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">the 1990s<\/a> to provide coverage for large enterprises. It covered things like data processing errors and online media.<\/p><p>Since that time, the policies for this type of liability coverage have changed. Today\u2019s cyber insurance policies cover the typical costs of a data breach. Including remediating a malware infection or compromised account.<\/p><p>Cybersecurity insurance policies will cover the costs for things like:<\/p><ul><li>Recovering compromised data<\/li><li>Repairing computer systems<\/li><li>Notifying customers about a data breach<\/li><li>Providing personal identity monitoring<\/li><li>IT forensics to investigate the breach<\/li><li>Legal expenses<\/li><li>Ransomware payments<\/li><\/ul><p>Data breach volume and costs continue to rise. 2021 set a record for the <a href=\"https:\/\/www.nasdaq.com\/articles\/data-breaches-continue-to-skyrocket-in-2022\" target=\"_blank\" rel=\"noreferrer noopener\">most recorded<\/a> data breaches on record. And in the first quarter of 2022, breaches were up 14% over the prior year.<\/p><p>No one is safe. Even small businesses find they are targets. They often have more to lose than larger enterprises as well. About <a href=\"https:\/\/cybersecurityventures.com\/60-percent-of-small-companies-close-within-6-months-of-being-hacked\/\" target=\"_blank\" rel=\"noreferrer noopener\">60% of<\/a> small businesses close down within 6 months of a cyber incident.<\/p><p>The increase in online danger and rising costs of a breach have led to changes in this type of insurance. The cybersecurity insurance industry is ever evolving. Businesses need to keep up with these trends to ensure they can stay protected.<\/p><p>Here are some of the cyber liability insurance trends you need to know about.<\/p><h3 class=\"wp-block-heading\">Demand is Going Up<\/h3><p>The average cost of a data breach is currently <a href=\"https:\/\/www.ibm.com\/reports\/data-breach\" target=\"_blank\" rel=\"noreferrer noopener\">$4.35 million<\/a> (global average). In the U.S., it\u2019s more than double that, at $9.44 million. As these costs continue to balloon, so does the demand for cybersecurity insurance.<\/p><p>Companies of all types are realizing that cyber insurance is critical. It\u2019s as important as their business liability insurance. Without that protection, they can easily go under in the case of a single data breach.<\/p><p>With demand increasing, look for more availability of cybersecurity insurance. This also means more policy options, which is good for those seeking coverage.<\/p><h3 class=\"wp-block-heading\">Premiums are Increasing<\/h3><p>With the increase in cyberattacks has come an increase in insurance payouts. Insurance companies are increasing premiums to keep up. In 2021, cyber insurance premiums rose by a <a href=\"https:\/\/news.bloomberglaw.com\/privacy-and-data-security\/cyber-insurance-policies-grow-pricey-amid-rising-hacks-lawsuits\" target=\"_blank\" rel=\"noreferrer noopener\">staggering 74%<\/a>.<\/p><p>The costs from lawsuits, ransomware payouts, and other remediation have driven this increase. Insurance carriers aren\u2019t willing to lose money on cybersecurity policies. Thus, those policies are getting more expensive. This is at the same time as they are more necessary.<\/p><h3 class=\"wp-block-heading\">Certain Coverages are Being Dropped<\/h3><p>Certain types of coverage are getting more difficult to find. For example, some insurance carriers are dropping coverage for \u201cnation-state\u201d attacks. These are attacks that come from a government.<\/p><p>Many governments have ties to known hacking groups. So, a ransomware attack that hits consumers and businesses can very well be in this category.<\/p><p>In 2021, <a href=\"https:\/\/www.graphus.ai\/blog\/10-nation-state-cyberattack-facts-you-need-to-know\/\" target=\"_blank\" rel=\"noreferrer noopener\">21% of<\/a> nation-state attacks targeted consumers, and 79% targeted enterprises. So, if you see that an insurance policy excludes these types of attacks, be very wary.<\/p><p>Another type of attack payout that is being dropped from some policies is ransomware. Between Q1 and Q2 of 2022, ransomware attacks increased <a href=\"https:\/\/www.helpnetsecurity.com\/2022\/08\/12\/increase-ransomware-attacks\/\" target=\"_blank\" rel=\"noreferrer noopener\">by 24%<\/a>.<\/p><p>Insurance carriers are tired of unsecured clients relying on them to pay the ransom. So many are excluding ransomware payouts from policies. This puts a bigger burden on organizations. They need to ensure their backup and recovery strategy is well planned.<\/p><h3 class=\"wp-block-heading\">It\u2019s Harder to Qualify<\/h3><p>Just because you want cybersecurity insurance, doesn\u2019t mean you\u2019ll qualify for it. Qualifications are becoming stiffer. Insurance carriers aren\u2019t willing to take chances. Especially on companies with poor cyber hygiene.<\/p><p>Some of the factors that insurance carriers look at include:<\/p><ul><li>Network security<\/li><li>Use of things like multi-factor authentication<\/li><li>BYOD and device security policies<\/li><li>Advanced threat protection<\/li><li>Automated security processes<\/li><li>Backup and recovery strategy<\/li><li>Administrative access to systems<\/li><li>Anti-phishing tactics<\/li><li>Employee security training<\/li><\/ul><p>You\u2019ll often need to fill out a lengthy questionnaire when applying for insurance. This includes several questions about your cybersecurity situation. It\u2019s a good idea to have your IT provider help you with this.<\/p><p>This can seem like a lot of work that you have to do to qualify for cyber insurance. As you review the questions, your IT partner can identify security enhancements. Just like other forms of insurance, if you take steps to reduce risk, it can often reduce your premiums.<\/p><p>So, it pays to do a cybersecurity review before applying for cyber insurance. You can save yourself time and money. It can also fortify your defenses against cyberattacks.<\/p><h2 class=\"wp-block-heading\">Need Help Making Sense of Cybersecurity Policies?<\/h2><p>Cybersecurity coverage and insurance applications can be complex. If you answer wrong on a question, it can mean paying hundreds more in premiums than you should.<\/p><p>If you\u2019re considering cybersecurity insurance, don\u2019t go it alone. Give us a call and schedule a consultation. We can explain the policy details and provide guidance.<\/p><p><\/p><p>&#8212;<br><a href=\"https:\/\/www.pexels.com\/photo\/a-paper-beside-a-person-typing-on-a-laptop-7688374\/\" target=\"_blank\" rel=\"noreferrer noopener\">Featured Image Credit<\/a><\/p><p>This Article has been Republished with Permission from <a rel=\"canonical noopener\" href=\"https:\/\/thetechnologypress.com\/whats-changing-in-the-cybersecurity-insurance-market\/\" title=\"What&#039;s Changing in the Cybersecurity Insurance Market?\" target=\"_blank\">The Technology Press.<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Cybersecurity insurance is still a pretty new concept for many SMBs. It was initially introduced in the 1990s to provide coverage for large enterprises. It covered things like data processing errors and online media. Since that time, the policies for this type of liability coverage have changed. Today\u2019s cyber insurance policies cover the typical costs [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2488,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[361],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/haloedsolutions.com\/wp-content\/uploads\/2022\/12\/Whats-Changing-in-the-Cybersecurity-Insurance-Market-scaled-1.jpg?fit=2560%2C1920&ssl=1","_links":{"self":[{"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/posts\/2487"}],"collection":[{"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/comments?post=2487"}],"version-history":[{"count":0,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/posts\/2487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/media\/2488"}],"wp:attachment":[{"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/media?parent=2487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/categories?post=2487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/haloedsolutions.com\/wp-json\/wp\/v2\/tags?post=2487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}