The Rise of Cybersecurity Insurance: Trends to Watch
The cybersecurity insurance market has exploded in recent years, and it’s not slowing down anytime soon. By 2028, the market is expected to hit an incredible $26.24 billion. With cybercriminals getting smarter by the day, businesses of all kinds are looking for financial protection to minimize the impact of cyberattacks.
But as the demand for cybersecurity insurance grows, so do the regulations around it. Government and public efforts are tightening up the rules to help businesses and insurers better understand risk management and ensure policies cover what they should.
Let’s dive into some of the top trends shaping the cybersecurity insurance market today.
Top 4 Cybersecurity Insurance Trends You Need to Know
1. Increased Premiums
One of the biggest trends in cybersecurity insurance? Higher premiums. In 2021 alone, premium prices jumped by 74%! Why the spike? With cyberattacks becoming more frequent and sophisticated, the demand for insurance has skyrocketed. To combat those high costs, many businesses are stepping up their game with preventive measures like cybersecurity awareness training and stricter security controls.
2. Greater Focus on Cybersecurity Readiness
As claims continue to rise, insurers are paying more attention to how prepared businesses are for potential cyber threats. To avoid massive payouts, they’re asking companies to provide more info on their risk management history—like their incident response plans, past breaches, and whether they’ve completed risk assessments of their current cybersecurity setup.
3. More Scrutiny on Vendors
Vendors are getting more attention, too. Insurers want to know how much access vendors have to a company’s network and what privacy and security protocols they follow. If your vendors have access to sensitive info but aren’t following the same strict security practices, they could become a liability.
4. Increased Government Regulation
Governments are stepping in with more regulations around cybersecurity insurance. With the rise in ransomware, malware, and phishing attacks, it’s no surprise. In the U.S., new bills and resolutions are being introduced to establish a framework for cybersecurity insurance policies. Globally, the European Commission is proposing regulations that require regular cybersecurity assessments and action plans.
Protecting Your Business in a Changing Cybersecurity Landscape
When it comes to cybersecurity, businesses have two main options. First, take preventative action by building a strong risk management strategy and addressing any security vulnerabilities in your system. Second, explore your cybersecurity insurance options. While premiums are rising, the demand for coverage is absolutely justified—cybercriminals are only getting faster, smarter, and more dangerous.
At Sawyer Solutions, we’re here to help with both. We can assist you in securing your business and exploring the best cybersecurity insurance options.
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