Cyber insurance premiums are shooting up for businesses everywhere

Date:
Mon, 05 Jul 2021 13:53:29 +0000

Description:
Ransomware, rates and regulation are pushing premiums on cybersecurity into the stratosphere.

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Rampant ransomware , rising rates and regulation have caused a major spike in cyber insurance premiums, new research has said.

A report from international broker Howden claims cybersecurity insurance
rates increased by an average of 32% year-on-year in June this year - which
is on the back of a 50% rise since Howden began tracking.

As the company says, the three Rs (ransomware, rates, regulation) are dictating the prices. Globally, the number of ransomware attacks rose by 140% in the fourth quarter of 2020, compared to the first quarter of 2019 - but have also got more expensive, with US companies paying a ransom in Q1 2021 having to shell out 400% more compared to 2019. The post-mortem also became more expensive - as while it cost an average of $700,000 to remedy ransomware in 2020, it now costs $1.85 million - rising to over $2m for US firms. Heres our list of the best cloud antivirus software right now Weve built a list of the best antivirus software on the market Check out our list of the best malware removal software available

As a result, Howden says insurers are asking businesses to amp up their cyber-resilience, adding that many are only willing to deploy capacity if
they believe the customer's risk management is spotless. At the same time, theyre innovating at pace and developing new solutions to tackle the changing needs of clients - whilst also paying claims quickly and consistently.

Until recently, cyber insurance has been lucrative, the report further
claims, adding that the market has been growing substantially in these last five years. Gross written premium more than doubled in that timeframe,
growing at a CAGR of 22%. Howden expects a similar expansion rate for the
next five years, believing gross written premium to reach $20bn by 2025. Preparing for a cyberattack

Even though cybersecurity incidents and cybersecurity insurance costs may at times seem uncontrollable, companies can still do a lot by tightening up on their cybersecurity, the report concludes. Preparedness is a key component,
it said, claiming that businesses should build and test a robust plan to be carried out in an event of an attack.

And should that plan be put to the test in real life, businesses need to move quickly and run through the protocols as fast as possible. Companies that
have a tested incident response team pay, on average, almost 40% less, Howden concluded. Heres our rundown of the best endpoint protection software out there



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Link to news story: https://www.techradar.com/news/cyber-insurance-premiums-are-shooting-up/


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