The State of Cyber Insurance: Understanding This Transitional Market and Finding Ways to Make Your Company Insurable
White Paper Summary
The cyber insurance landscape is changing every day as more technology is introduced and information is stored by digital means. Innovation and growth abound.
But just as quickly as cyber-enabled technology and devices hit the market, so too do malicious actors — hackers who are more than happy to encrypt a file, hold data for ransom or demand bitcoin payment over threats of extortion. Businesses big and small have to be on the lookout for solutions to protect against unwanted cyber threats.
“Every company has privacy and cyber exposures,” said Jason Glasgow, Senior Vice President, and U.S. Cyber Lead at Allied World. “It comes down to how much exposure they have and how they choose to protect their assets.”
The cyber market itself is hardening, and protecting against growing threats has become an imperative but sometimes difficult task. Cyber events are costing insurers and insureds big — the average cost of a data breach in 2021 reached $4.24 million per incident, the highest in 17 years, according to IBM and the Ponemon Institute. And the market is reacting, pulling back on capacity and meticulously reviewing whether an insured is even a good risk to take on.
Luckily, there are ways for businesses and their risk managers to show they are a favorable risk to insure.
Here’s a look at the state of the cyber market today and how risk professionals can partner with their carrier to get adequate coverage for cyber risk.
To learn more about Allied World please visit their website.