Security News > 2022 > July > 82% of global insurers expect the rise in cyber insurance premiums to continue

82% of global insurers expect the rise in cyber insurance premiums to continue
2022-07-19 03:00

A Panaseer survey of global insurers across the UK and US found that 82% are expecting the rise in premiums to continue, with 74% of insurers agreeing that their inability to accurately understand a customer's security posture is impacting price increases.

To help combat the ransomware crisis, researchers found that 87% of insurers want a consistent approach to analysing cyber risk, and 89% want direct access to customer security metrics and measures proving the status of security controls.

"Metrics and measures will absolutely have a bigger role in insurance. There is a new market developing where insurers will offer a reduction on pricing if you provide a quarterly report through a specific security platform, because they know it's a good product that helps to improve cyber hygiene. It is likely we will see the old way of doing cyber insurance coming under pressure, as there are smaller, more agile organizations capable of doing more and offering support," said Andreas Wuchner, a cybersecurity and risk expert and advisor to Panaseer.

"Insurers expect organizations to have good cyber hygiene across a broad spectrum of security areas, both on-premise and cloud environments, with the evidence to prove it. That's why transparent data and security automation is so important, because it's hard for any organization to be perfect at all these technical disciplines."

The increasing sophistication of cyber threat actors is another leading cause of rising premiums for cyber insurance, alongside the increased threat from cyber-attacks targeting software supply chains, the cost of ransomware and the inability to accurately understand a customer's security posture.

Even if the current rate of cyber-attacks remains the same, 84% of respondents claim their organizations would continue to offer cyber insurance over the next three years.


News URL

https://www.helpnetsecurity.com/2022/07/19/rise-cyber-insurance-premiums/