Are you prepared for these big changes?
We’re all familiar with the havoc cyberattacks have wrought on businesses around the world in the last several years. According to the Ponemon Institute State of Cybersecurity Report, 66 percent of small- and medium-size businesses have reported a cyberattack in the past 12 months, while 69% say these attacks are becoming more targeted. This in turn leads to massive financial losses — in fact, in 2020 Cybersecurity Ventures estimated cybercrime would continue to grow by 15% annually until 2025, accounting for $10.5 trillion.
This, in turn, has affected the insurance industry. According to Insurance Business magazine, carriers are now adjusting cyber liability policies to account for massive losses that have been incurred from these attacks. The loss ratio associated with cyber policies has grown from 43% in 2016 to 73% in 2020, leading many carriers to either exit the market or require more strict prevention protocols and increase premiums.
“Cyber insurance was only ever meant to be for a novel, an unforeseen catastrophic event,” Jess Burn, an analyst at the advisory firm Forrester, said in an interview with SC Magazine. “When things like ransomware were limited to someone’s grandmother on their old PC, that was a license to print money. But now that music has absolutely stopped and they’re reeling from those losses.”
What can my business do?
No organization is completely safe from cyber criminals. When the worst comes to pass, having some sort of safety net in place can make a huge difference in the long run. Though incidences of cybercrime have put a strain on both businesses and insurance carriers, the Unland team can help you find Cyber Liability coverage solutions that align with your potential risks and budget.
For more risk management guidance and Cyber Liability insurance solutions, contact the Unland team today.