When it comes to global cyber insurance market predictions, Finaria.it, an insurance company projected a rise of 21% in growth within the next year, adding up to $9.5bn in value.
This is mostly due to the increased explosion of cyber-crime aggravated by the pandemic this year as scores of professionals were forced to work behind a desk at home. Every company is in search of protection from Cyber threats, that’s why Finaria projected by 2025 the cyber insurance market value will be $20.4 bn.
According to research made by Finaria, it analysed that between 2013 and 2019 the health care industry showed the most cases, making it a red spot for cybercrime. The research also shows that the health care sector suffered 25% of all cyber-attacks. Of late, there are still rampant attacks on this sector even in the midst of the global pandemic, COVID-19 proving to be the leading victim sector. IT technology took second place in telecommunications, insurance, retail and wholesale. Furthermore, manufacturing came in second and third place, respectively, on the list of most targeted industries.
Insurance clauses connected with crisis management and breach incident contributed to 75% cases in this period. Breached incident is a result of false alarm or fake occurrence. Breaching of private data is a rampant common case taking the second place followed by cyber-extortion.
Ransom and malware crime rates spiked through the roof in the first half of 2020 in North America. These attacks created a huge awareness amongst people and as a result, there was a high demand of cyber insurance.
Referencing data from the Ponemon Institute’s Cost of a Data Breach Study, which was collected a few months ago and analyzed. The data clearly demonstrates how the healthcare industry has been affected by expensive data breaches. Resulting in astonishing expensive cost averaging $7.13 per incident. Energy follows second averaging a costly $6.39m per breach. The list goes on to financial services $5.85 followed by pharma $5.06m and lastly technology $5.04m.
“Recently the business sector has to combat one of the biggest threats and that is cyber-attacks and data breaches. Such attacks cause confidential data leakage and huge financial incurred cost to businesses around the globe. Businesses are becoming more exposed as a result of the rapid advancement of technology and data applications. Hence the aware and need for cybersecurity insurance, Finaria.it says.
“There is an unfortunate possibility that a data breach may happen in a company. Sometimes the data breaches are costly and may even exceed the company’s ability and resource to settle the case or the expense. Now, that’s where cybersecurity insurance comes in. Cyber insurance cover can act as a pillar and offer support to the business so it can withstand such cyber-attacks. Also prevents the closure of a business in such cases”.
According to research conducted a few months ago, only 20% of UK businesses have declared cyber-security a top priority. Furthermore, these businesses have purchased cyber insurance. Other research found out that 87% of small businesses don’t have cyber insurance cover.
