Security News > 2023 > September > Understand the fine print of your cyber insurance policies

A significant gap is emerging between insurance providers, as organizations skip the fine print and seek affordable and comprehensive coverage, potentially putting them in a tough place when they need to use this safety net, according to a Delinea report.

This year, companies that used their cyber insurance more than once increased to 47%, while 67% of respondents noted that their insurance rates increased 50-100% upon application or renewal.

Even if organizations can get or renew cyber insurance policies they can afford, their claim may get denied or reduced because of the fine print.

"Over the past year, it's become evident that cyber insurers are learning from their data and are now maturing. In the early days of cyber insurance, they were just trying to address a huge demand, but now they realise they must reduce their own exposure to both avoidable and uncontrollable circumstances," said Joseph Carson, Chief Security Scientist and Advisory CISO at Delinea.

"Our survey results find that most organizations are not approaching cyber insurance with the same diligence - they are simply looking to get covered. What they're not checking is whether the policy they had last year is what they need now, or if their policy changed at renewal. This 'cyber insurance gap' could put a lot of organizations in a tough place when a cybersecurity incident occurs, and they want to utilize this financial safety net," Carson added.

51% of respondents reported that Identity and Access Management and Privileged Access Management controls are required by their cyber insurance policies.

News URL

https://www.helpnetsecurity.com/2023/09/01/insurance-fine-print/