Security News > 2021 > December > Cyber insurance trends: Insurers and insurees must adapt equally to growing threats

In this interview with Help Net Security, Avi Bashan, CTO at Kovrr, talks about cyber insurance trends and how the growing threat landscape impacted both insurers and insurees.

At the same time they feel more vulnerable to a ransomware attack than ever before, insurers are pulling back to the point where cyber insurance is more expensive than used to and thus demands clearer justification of the investment for most companies, and policies that cover a broad range of cyber incidents are more scarce.

It is unlikely cyber insurance will revert to the way it was written and priced prior to the ransomware epidemic, so the onus will be on the enterprises to ensure they can adequately communicate their cybersecurity posture to insurers moving forward.

Quantifying cyber risk means forecasting loss frequency and severity to make cyber risk financing decisions.

Financial cyber risk quantification will also help these two sides of the business come together and see cyber risk for what it is - an operational expense rather than a technical one.

This diverging trend of insurers tightening their belts on cyber coverage will drive significant adoption of cyber risk quantification as enterprises try to better understand the potential financial impact of cyber attacks on their business over time and to prioritize investments in cybersecurity and cyber insurance.

News URL

https://www.helpnetsecurity.com/2021/12/21/cyber-insurance-trends/