As of 2020, most of the sectors and domains utilize some type of technology to regulate their business operations. In such technology-oriented environments, cyber-attacks are a huge threat that can disrupt business operations.
Research by Cowbell Cyber suggests that around 65% of the SMEs are inclined towards Cyber Insurance in upcoming two years as a part of their cybersecurity plans. The cyber attackers are using more advanced techniques to break through organizations’ security during the Covid19 outbreak.
Organizations need to lay down a solid Cyber Security plan for complete protection against threats but still, these plans aren’t just enough to provide full security assurance. A company needs a Cyber Insurance plan so that their business liabilities can be covered in case of a cyber-attack or data breach.
According to Global News Wire, the Cyber Insurance industry is expected to grow with a 26.3% CAGR from the year 2020 to 2030. This yearly compound annual growth ratio will bring a huge revolution to the cyber industry.
It is certain that the Cyber Insurance market will exponentially grow in this decade. The whole industry is going through a transformation with new Cyber Firms offering their insurance plans. There a few trend predictions that depict the rise of this industry, let’s have a look:
Growth of Cyber Insurance Education
The organizations, agents and brokers are unaware of any cyber insurance policies. They have a wrong perception of this industry as they see cyber insurances as a “Luxury”. Hence, they do not spend much on these plans. However, Cyber Insurance has become essential for small to large scale businesses.
The cyber insurance companies are also trying their best to educate their potential customers about the uprising threats that can damage their digital assets. They are introducing new and understandable insurance policies for the business owners to convince them.
Eventually, this education is helping policyholders to choose the right policies by knowing the details of cyber attacks and threats being covered under the policy. According to PartnerRe, traditional businesses face three problems during the selection of their policies:
● Unable to Understand the Exposures
● No Understanding of Coverage
● Expensive Policy Costs
The insurance companies are trying to minimize this gap in the market by eliminating these obstacles by educating organizations and businesses about the benefits and risks.
Cybersecurity & CyberInsurance Relations
The cybersecurity and insurance industries will work hand-in-hand to offer completely assured security solutions. Both industries will support each other to secure SMEs and large organizations.
Companies need both services for their Cyber Resilience plans. These resilience plans are now making cyber insurance essential. Cybersecurity firms do their job by implementing the best security solutions for protection against threats. However, in case of an inevitable cyber-attack, they also need cyber insurance to cover up the loss.
The cyber insurers will work closely with security experts to form new ventures that will provide advanced solutions to protect against severe and much disruptive attacks.
Language Standardization for Insurance Industry
It’s currently difficult for businesses to understand the complete insurance policy coverage. These policies include complex terms that are far from the understanding of a normal business owner. The insurance companies need to bring more clarity on these confusing terms to convince SMEs.
Both the insurers and businesses need to have clear communication about the uprising threats, risks, possible solutions and security plans including insurance policies. Insurance companies need to introduce layman terms for business owners to persuade them. They have to push policyholders to learn more about cyber threats and consequences they might face without a proper insurance plan.
The industry dynamics are continuously changing for cyber insurance. New insurers tend to revolutionize the industry by covering all major communication and cost gaps. These problems are getting resolved little by little and industry is going to thrive in upcoming years.