The threat landscape is adapting, and businesses need to remain vigilant. Without adequate cyber defense, it is very possible that a business can bleed through available cash in responding to a threat and meet its demise. A well-structured cyber insurance policy can protect an enterprise's assets and help in recovery. Learn more about why you need cyber insurance here.
March 22, 2023
In today's digital age, cyber attacks are becoming more frequent and sophisticated. As a result, businesses are facing increased risks of data breaches, ransomware attacks, and other cyber threats. Cyber insurance can play a major part in a company’s cyber defense strategy by helping businesses to mitigate these risks and protect their assets. However, the cost of cyber insurance is rising, causing many businesses to question whether it's worth the investment.
Much has been said about whether cyber insurance is worth the investment or not. Many enterprises point to rising rates (see Marsh’s findings here) and falling coverage limits as major factors against the investment. We do see rates and limits stabilizing a bit in the early parts of 2023, but still remaining at significantly high levels. Many have questioned whether their investment is better spent on additional cybersecurity, in that further risk reduction would be better than risk transfer at these terms.
However, there are several reasons why enterprises should still invest in cyber insurance, even though the cost is rising. First, the threat of cyber attacks is not going away. In fact, the Cybersecurity Ventures report predicts that cybercrime will cost $8 trillion by 2023 and $10 trillion by 2025, making it one of the most significant threats facing enterprises today. Investing in cyber insurance can help enterprises protect themselves from these threats and ensure that they can recover quickly in the event of a cyber attack.
Second, cyber insurance can provide enterprises with access to critical resources and expertise. Many cyber insurance policies come with access to cybersecurity experts who can help enterprises identify and mitigate their cyber risks and deal with an ongoing threat. Cyber insurance policies can provide enterprises with access to incident response teams, which can help them respond quickly and effectively to cyber attacks. By investing in cyber insurance, enterprises can benefit from the expertise of these professionals and ensure that they are well-prepared for any cyber threats that may come their way.
Third, cyber insurance can provide businesses with peace of mind. Without an adequately structured cyber insurance policy, enterprises may be scrambling to meet the costs of a ransomware demand, make payroll or pay for additional expenses to restore operations, or pay for the onerous regulatory fines and penalties that may arise. It is a very real possibility that a highly exposed enterprise can face its demise and bankruptcy from a cyber event. Knowing that they have adequate cyber insurance coverage can help enterprises feel more confident in their ability to protect their assets and recover from cyber attacks. This peace of mind can be invaluable for businesses, especially those that are highly reliant on technology and digital assets.
While the rising cost of cyber insurance is a concern for many enterprises, the benefits of a well-structured cyber insurance policy can far outweigh the costs, and businesses cannot afford to ignore the importance of this coverage. By investing in cyber insurance, businesses can protect themselves from cyber threats, access critical resources and expertise, and enjoy the peace of mind that comes with knowing that they are adequately protected.
#cyberriskquantification #cyberrisk #cyberattacks #cyberinsurance
