Cyber Insurance
Today, more than ever, businesses are being attacked in a cyber war. Yes! I said "war".
Cyber Insurance generally covers business' liability for a data breach involving sensitive customer information such as Social Security numbers, credit card information, account numbers, driver's license numbers, and health records. But, is it worth it?
You should have cybersecurity insurance if you handle customer data and/or store information regarding your business online. Cybersecurity insurance can cover the cost of notifying your customers about a data breach, legal defense, and more. Data breach insurance are types of cybersecurity insurance. But this is just one tool in the tool box.
The Art, History and Science of CYBERWAR
"The Art of Cyberwar" describes the digital battlefield and the principles for conduction proactive and defensive operations.
One ConnectTek partner understand today's threat landscape and the insights critical to developing strategies and solutions to establish a strong cybersecurity framework while maneuvering in the digital domain - responding to and repelling the most sophisticated of attacks from foreign nations, cyber criminals, and other cyber-threats.
Cybersecurity 101
"Cybersecurity is the practice of protecting networks, devices and data from damage, loss, or unauthorized access, such as Data Exfiltration (theft form a device or network). Data Loss Prevention (DLP) is an overall security strategy that focuses on detecting and preventing the loss, leakage, or misuse of an organization's data. Just as physical security protects buildings and the people in them from various physical threats, cybersecurity safeguards digital technologies and their users from digital dangers.
Organizations must ensure that they are properly defended because relying on Cyber Insurance alone will not necessarily protect or recover the organization from a catastrophic disaster.
In a world where cyberattacks have become a clear threat to our everyday lives, providing security to customers who want to protect their organization from cyber threats is an important role for technology service providers to fill.
In 2022, the FBI reported that $43 billion had been lost in the US through business email compromise attacks since 2016.
Cyber insurers have experienced a 300% increase in losses since 2018 (Fitch Ratings). This has caused the insurers to pay out more resulting in increased premiums and exclusions.
New coverage exclusions went into effect March 31, 2023.
The newest exclusions were announce by Lloyds of London on March 31, 2023. Lloyds informed all their cyber insurers going through their marketplace to re-write their policies to indicate that, going forward, there will be no coverage for cyberattacks that are sponsored by NATION-STATE (Government Agencies) entities.
Lloyds of London writes more than 40% of the premiums which come from the US. Virtually all major insurers including; Berkshire Hathaway, CAN Financial, Much Re, Fairfax Financial, and Traveler's, all sell coverages through Lloyd's marketplace according to AM Best who is the world's largest insurance credit agency.
Cost
Cyber Insurance is in heavy demand among corporate entities. The top 20 US insurers took in $3.9 billion in cybersecurity premiums in 2021. Of these policies, there was a 95% increase to stand-alone policies.
Rate increases are going through the roof for less and less coverage as the insurance companies mitigate their losses in a WAR that's getting worse not better.
Example: One of our clients got their first cyber insurance policy in 2014 at the cost of $8k/year that covered $2.5 million. At the end of 2021, that same client is now paying $80k/year for only $1 million in coverage. That is a 1,000% increase in premium cost. Insane, right?
What if there was a way to reduce you cyber insurance cost by up to 80%?
Summary
In a world where cyberattacks have become a clear threat to our everyday lives, providing security to customers who want to protect their organization from cyber threats is an important role for technology service providers to fill.
Despite all the highly touted new technologies, new vendors, and new solutions that emerge every year, we continue to see high-profile breaches in the news, almost daily. And the leaders of every organization are aware that cyber risk is essentially a business risk these days.
Our partner understands that all organizations want to do a better job of managing their cyber risk - but IT department resources are often constrained. Business leaders are seeking to end the cyber risk for their organization. We can show you how. We can also provide a penetration test from ethical hackers to show you just how much you are currently exposed, regardless of what you have built in place.