Enhancing Cybersecurity through Insurance
Is your business meeting the right requirements to for Cyber Security insurance ?
Cybersecurity Insurance Statistics
- The global market for cybersecurity insurance was USD $7.60 billion in 2021 and is expected to grow to USD 20.43 billion by 2027.
- The US market for cybersecurity insurance was worth $2.38 billion in 2020.
- How often did cyber insurance pay out? 27% of data breach claims and 24% of first-party claims had some exclusion written into the policy that prevented part-payout or full-payout.
- How many companies have cyber insurance? In a 2022 survey, only 19% of organizations claimed to have coverage for cyber events beyond $600,000.
- Only 55% of organizations claimed to have any cybersecurity insurance at all.
- How common are cybersecurity insurance claims? In the past 3 years, cyber insurance claims have increased by an order of 100% and payouts a total of 200%, with the peak claims being 8,100 in 2021.
- What size companies made the most cybersecurity insurance claims? 99% of all cybersecurity insurance claims came from SME companies (annual revenue under $2 billion).
- The average cybersecurity insurance claim cost for a small to medium enterprise is $345,000.
- The average cybersecurity insurance claim cost for an SME for a ransomware event is $485,000. The average claim for all organizations is $812,360.
In the digital age, where the majority of our business operations and personal life are intertwined with technology, cybersecurity has become more important than ever. The rising incidences of cyber threats and data breaches have made cybersecurity insurance not just an option, but a necessity. As a Managed Services Provider (MSP), we understand the complexities involved in meeting cybersecurity insurance requirements and how an audit can help you ensure you’re adequately protected.
What is Cybersecurity Insurance?
Cybersecurity insurance, also known as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar events. These policies are tailored to meet specific needs and can be as broad or narrow as required. Cybersecurity insurance covers a range of elements, including data breaches, business interruption, and network damage.
Why Do You Need Cybersecurity Insurance?
Given the rapid increase in cyber threats, businesses of all sizes should consider investing in cybersecurity insurance. Cyber attacks can be expensive, not only from a financial standpoint but also in terms of business disruption, loss of customer trust, and reputation damage. Cybersecurity insurance helps organizations handle the costs associated with these risks.
Cybersecurity Insurance Requirements:
Before a policy is issued, insurers will need to assess your cybersecurity strength to understand the level of risk they are insuring. This assessment typically includes an audit of your IT infrastructure and systems, your security policies and procedures, data handling and storage procedures, employee training, and more.
How Our MSP Can Help with Your Cybersecurity Insurance Audit:
Comprehensive Risk Assessment:
We conduct a thorough audit of your current IT infrastructure, identifying potential vulnerabilities and offering solutions to strengthen your defenses.
Policy and Procedure Evaluation:
Our experts can review your existing policies and procedures against industry standards and best practices, suggesting improvements and modifications where necessary.
Employee Training:
The human element is often the weakest link in any cybersecurity chain. We provide training and awareness programs to ensure your team is aware of the latest threats and how to handle them.
Incident Response Planning:
Our MSP can help develop or enhance your incident response plan, ensuring that you can react quickly and effectively in the event of a breach.
Ongoing Monitoring and Management:
Once your systems are secure, our MSP can provide continuous monitoring and management to maintain a robust cybersecurity posture.
Cybersecurity insurance is an essential part of any modern business strategy. However, meeting the insurance requirements can be a complex process. As an experienced MSP, we can streamline this process, ensuring that you meet and exceed these requirements while
simultaneously improving your overall cybersecurity posture.
Contact us today to find out more about how we can help you navigate the audit process for your cybersecurity insurance. Protecting your digital assets has never been more critical; let us help you do it right.
