Cyber Insurance Expected to Continue to Rise as Sophistication and Cost of Ransomware Attacks Increase
New data about the state of cyber insurance shows that given the current loss ratios by insurers – and the reasons behind those losses – will result in higher premiums for the foreseeable future.
I cover the topic of cyber insurance at a pretty regular cadence here, but it’s rare when you can hear directly from a wide range of insurers about the state of cyber insurance, what challenges insurers are seeing, and what to expect in the near-term. So, I was thrilled to hear about security vendor Panaseer’s 2022 Cyber Insurance Market Trends Report providing some insight into exactly where cyber insurer head’s are.
According to the report, a majority (82%) of cyber insurers expect cyber insurance premiums to continue rising over the next two years. The reasons are threefold:
- The increased sophistication of cyber threat actors – 74% of insurers say this is having an impact on premiums
- The increased cost of ransomware attacks (i.e., payments) – 78% of insurers say this is having an impact
- Inability to accurately understand a customer’s security posture – 74% of insurers say this is having an impact
What’s interesting is of all the security technologies in place today – from IAM, to PAM, to vulnerability management, to EDR, and more, 36% of insurers said that Security Awareness Training is the most important factor (just behind Cloud Security as the top factor) when assessing a prospective insured organization’s network for risk and worthiness for a policy.
Makes you realize the value of keeping users continually up to date on the latest phishing and social engineering attacks and methods. So, if you want to get a cyber insurance policy, keep your users “secure”.