Cyber Insurance premiums are becoming dearer and the reason for such a rise is claimed to be sophistication in attacks that are making mitigation and recovery expensive. Most companies are showing laxity in following basic cyber security hygiene, leading to a surge in cyber-attacks and data breaches.
Marsh’s Market Index shows the cyber insurance market in the United States will surge 100 percent to witness a year on year growth by the end of 2022. And in coming months, there might be a 70% increase in cyber claims leading to an increase in premium costs by 20-30%.
Lloyds insurance claims that companies witnessed losses on products between 2018 and 2019 because of ransomware attacks. And after the lockdown, when companies were finding it difficult to cope up with the lockdown losses, those buying insurance came down by 34%. This can be due to budget issues, lack of awareness, a kind of illusion that no one will target their small firm and last, but not the least, trouble in having the right people on hand to guide on what is prevailing in the current cyber landscape.
So, is the trend of rising insurance costs going to be witnessed in the coming years?
Well, yes, companies should brace up with rising costs if they desire to keep their IT infrastructure insured from many hacks, especially ransomware attacks. Before getting a quote, they need to be specific about what needs to be covered under cyber insurance and what needs to be excluded.
Better if you go for a policy that covers looses incurred through ransomware attacks as estimates are in that they might touch a double-digit figure ranging in millions, pretty soon, and can lead to a business windup on a permanent note.