Cybersecurity has crossed from being an IT issue to being a business issue, and 2018 promises to see a significant ratcheting up of cybersecurity coverage as a result.
The growing cyber threat and stricter cybersecurity regulations will boost the growth of cyber insurance policies this year, according to industry sources. According to NetDiligence, whose data is based on actual cyber insurance claims, the average cost of a cyber breach in 2017 was $349,000 for small companies, reaching an average cost $5.9 million for major organizations.
As senior decision-makers understand the level of financial exposure, cyber insurance will need to answer the call more and more. Allianz predicts that global cyber insurance premiums will grow to $20 billion by 2025, up from around $4 billion currently.
According to a 2017 Ponemon Institute survey, while 87% of companies view cyber liability as one of their top 10 business risks, only 24% admit to having cyber insurance. That may be due to a lack of clarity about how this coverage works. Cyber insurance differs from auto or home insurance, where the risks are known and the products haven’t changed that much. It is much more complex and potentially more dangerous than traditional risk.
Organizations need to demonstrate that they have followed best practices to protect consumers and employees. They will also need to shift their approach to cyber-risk management, with a focus on accountability, to identify their threats and insurance needs through a deep technical diagnostic linked to realistic business impact.
The team at The Reschini Group is here to help you assess your need, and assemble the most cost-effective package, for increased cyber coverage to meet your particular situation.
Because it’s not just an IT issue any longer. Protecting your cyber security is now a front-and-center business survival issue.
Copyright 2018 The Reschini Group
The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.