Security News > 2022 > August > As the cost of cyber insurance rises, the number of organizations who can’t afford it is set to double

The number of organizations that will be either unable to afford cyber insurance, be declined cover, or experience significant coverage limitations is set to double in 2023, according to Huntsman Security.

"Loss ratios will not improve until premium incomes better match the current level of pay-outs. With this reduced insurance access alongside increasing cyber threats and tightening regulations, many organizations are losing cyber insurance as an important risk management tool. Even those who can still get insurance are paying a prohibitively high cost," Woollacott continued.

With a third of UK firms subject to cyber attacks at least once a week, cyber insurance as part of overall risk management is crucial.

If other lines of insurance are any guide, as organizations start to improve their cyber risk management and oversight, insurers will improve their risk pricing models and reward those organizations that can evidence higher levels of security controls with more favourable insurance costs and terms.

"The best way of achieving this is to follow best risk management practice to ensure that your organization employs effective security controls to quickly identify and manage any emerging cyber risk. This will give businesses the best chance of identifying potential cybersecurity weak spots and if the worst happens, still being able to benefit from a cost-effective cyber insurance policy that funds containment and recovery activities."

"Right now, the cyber insurance sector is driving security controls world-wide. And even when legislators, regulators and the courts have caught up, it will still be insurers seeking to improve the quality of their risk pricing information that will set security terms. Organizations should ensure they are able to take advantage of any improvement in terms offered by enhancing their security controls and posture."

News URL

https://www.helpnetsecurity.com/2022/08/11/afford-cyber-insurance/