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How Insurance Sector Protects Individuals Against Cyber Attacks Today

Insurance Cyberattacks

Cases of insurance cyberattacks have risen steadily during the covid-19 era. This is according to Accenture, a leading consultancy firm’s latest report. The data holds that most retail consumers ranked financial security as a top concern.

Identity and Data Protection Against Insurance Cyberattacks

Insurers previously believed that commercial consumers are the biggest victims of insurance cyberattacks. But the Accenture report is of the contrary view. The data hold that cybersecurity is no longer a burden to commercial customers alone. Today, ordinary consumers are also looking for possible solutions to this menace.

Over 75% of consumers surveyed by Accenture are ready to support the fights against cyberattacks. Most of them said they welcome any form of insurance cybersecurity plan. That is true, especially where the insurance offers premiums like modern-day anti-virus software. Younger consumers were the greatest respondents who advocated for this.

Insurers can protect consumers by offering identity and personal data security. That way, the consumers can be ready to solve those risks as they come. Consumer data and identity protection are vital for assets and customers’ rooted foundations. These techniques will broaden and deepen how insurers relate with their clients.

In fact, some insurance companies are already doing this. Baloise Group is offering direct-to-consumer insurance for safe online shopping and internet surfing. Also, The New Zealand Delta Insurance Group is not left behind. Their cyber product is securing people from data loss and ransomware.

The New Normal Solutions in Insurance Cyberattacks

With many people working from home, they are embracing new ways of doing things. Similarly, insurers have the sole role of protecting consumers’ homes digitally and physically.

Thus, the insurers should do a lot about the prevention of insurance cyberattacks. That is critical for people who depend on the insurance sector for their business. Insurers who protect consumers during these modern-day cyberattacks have a lot to gain.

Today where ransomware and cybersecurity threats are common, the insurance business is also growing. And there is a need for the insurers to offer services and security at lower prices. That is because consumers usually consider costs and value for money before selecting insurance coverage.

Ideally, this calls for the providers to look beyond cyber threat protection. They should also understand the economic hardships due to the Covid-19 uncertainties. Many businesses are seeking protection from the adversities of hacking threats. They are also looking to reduce any form of disruption they may face in relation to insurance cyberattacks.

Final Thoughts

Many people are currently working remotely and, at some point, independently. So, it will be an excellent idea for people to get the best protection against any form of cyberattack. The good news is the insurance industry is adopting new methods to protect their clients.

Cybersecurity Spending by US Businesses Rises but Challenges Remain

Cybersecurity spending

The United States’ leading small business insurer Hiscox has issued a report stating that US businesses have increased their cybersecurity spending. It also mentions US firms as the leaders in the cybersecurity space. 

But the annual Hiscox Cyber Readiness Report also notes that US businesses have to do more to fight ransomware attacks and phishing emails. Hiscox interviewed more than six thousand cybersecurity experts under the study. The study was conducted in the US, UK, Germany, Ireland, Belgium, Spain, Netherlands, and France. It includes inputs of more than 1000 US cybersecurity professionals. 

Here’re the key takeaways of the study:

Cybersecurity Spending Has Risen

The study revealed that US businesses are spending more on cybersecurity than before. The average spending has increased to $2.6 million per business. It was $2.4 million in 2020. 

Ransomware and Phishing Emails

Ransomware attacks have increased, with US companies being the prime target. The study also found that US businesses are more likely to pay a ransom. 

Seventy-one percent of the victims have paid an average of $17,959 as ransom in the past year. Bad actors use phishing emails as their primary method (60%) to target businesses. 

Financial and Reputational Damages

DDoS or ransomware attacks impact the finance and reputation of businesses. The report states cybersecurity incidents affected the financial standing of 81 percent of US companies. The average economic damage was -43 percent. Also, 72 percent of the companies said that not handing client and partner information securely will negatively affect their brand. 

Cybersecurity Spending and Expertise: US Firms Lead From the Front

The study mentions that 25 percent of US firms have expertise in cyber defense, followed by the UK at 23 percent. But it is surprising to see that US companies scored lower (6%) than the UK (13%) when it comes to defending or remediating cyber incidents before experiencing bad outcomes. 

Other important highlights of the study include the following:

  • Most US companies (34%) said that malicious actors used their websites to infiltrate their systems and networks.
  • US companies are also at the front in cyber insurance purchases. Most businesses (33%) are likely to have cyber liability insurance. And 53 percent of companies want to train their employees in cyber hygiene with the help of their insurance providers. 
  • Forty-nine percent of US companies think they are more at risk of cyberattacks during the COVID-19 pandemic because most of their teams work from home. 

The Cyber Product Head for Hiscox in the US, Meghan Hannes, said that how we used to work has changed permanently. Now businesses have to manage cybersecurity in multiple offices spread across the country, round the clock, Meghan added. She further said that COVID-19 triggered chaos, creating ideal conditions for cybercriminals to act on their plans. 

While US companies are the leaders in cybersecurity, there’s still a long way to go. Bad actors are always on the lookout for new and sophisticated methods to attack businesses. They are using new technologies to adapt and mutate their digital viruses. As such, companies must do more to enhance their cyber defenses.

CNA Financial Suffers A Major Blow After A Ransomware Attack

CNA Financial Ransomware Attack

Though the risk is unclear, data accessed could be used against clients as CNA reports of network issues and compromised systems such as Email.

In a statement released through one of its official channels, CNA Financial admit to having fallen victim to a recent cyber-attack that disabled systems and compromised policyholders’ information.

Commenting on the issue, one top cybersecurity analyst argued that “cybercriminals are continuously employing new strategies such as targeting bigger insurance entities. This way, they CNA further spread the risk to the insured businesses once they have acquired sensitive information about policy contracts.”

CNA Financial specializes in providing companies with cyber insurance services against cyber-attacks like the one it sustained. Known as among the highly ranked cyber insurance companies in the U.S., Employing almost 6,000 experts and earning more than $10 billion annually makes CNA Financial a top-ranked insurer in the U.S.

“CNA Financial has a broad client base in the U.S. and among the most trusted cybersecurity insurer for many years.”

According to the statement, the attack disrupted their network and ‘significantly’ impacted other systems such as corporate Email, leading to the shutting down of subsidiary services as a safety measure to limit the attack’s other adverse impacts.

“Our employee systems and corporate email were impacted for three days; hence further measures were taken to shut other systems down to curb the spread of the attack.”

The March 21, 2021 attack compelled CNA Financial to source third-party forensic experts and law enforcement agencies to investigate the issue and alleviate further threats.

The cybersecurity insurer is further worried about what might happen to their client’s exposed data. This CNA be a sure recipe for future attacks against the company and its clients, hence informing affected policyholders.

Among the significant counter-measures adopted by CNA Financial was employee workarounds to facilitate continued assistance to clients as more information about the attack is being gathered.

According to Joshua Motta, Coalition CEO, “this attack could threaten us more if policyholders’ data has been accessed.” The criminals could identify the insured companies and the accompanying deductibles and scope of coverage.

This is because such information in criminals’ hands enables them to prepare even unfriendly ransom demands after exploiting vulnerabilities in policyholders’ systems. This gives them an upper hand as far as phishing is concerned.

Such a threat compelled CNA Financial to notify policyholders that those affected will be communicated to make negotiations even smoother if ransomware operators attack their systems.

However, CNA Financial’s claims were downplayed by the Founder and CEO of Immuniweb, Ilia Kolochenko.

He argued that hackers do not have the time to evaluate what companies are covered and the individual scope of coverage; hence no need for alarms until the range of the attack is determined.

On the contrary, Saryu Nayyar, CEO Gurucul, believed that it could be a new tactic to spread attacks to a more extensive base by compromising the central security source for many businesses.

 He said, “there’s a need for businesses not only to have an insurance policy but also to have threat analytics and the best defense products.”

“Such products are not 100% effective but help in curbing thousands of attacks and viruses launched every day by cybercriminals.”

Therefore, this calls for organizations to adopt and embrace cyber safety practices from top management to operations level. This helps maintain an infrastructure that CNA detect and contain any attack before it spreads further.

Luckily, by April 1, CNA Financial had restored its email functionality with an additional security layer of two-step authentication plus a feature that could detect and block threats.

Cyber Insurance Companies Reduce the amount of Risk, Security Costs Provide Less Information

Every situation, like the modern world, has its own set of problems. Cyber threats are the latest crisis that many well-known businesses are facing. A cyber assault is a criminal incursion aimed at damaging computers or stealing information. Multinational corporations are currently confronted with this issue. However, some businesses do not invest in cybersecurity. Cyber attackers have the ability to leak information, posing a risk to businesses. Consumers were sometimes unaware whether or not their device or website had been compromised, or whether or not their website details had been leaked.

Cybercrime is becoming more prominent in the eyes of the government and businesses these days. Corporations and governments are giving attention to cyber defense to curtail the increasing cybercrime, as Kelly Castriotta, global cyber underwriting executive at Markel corporation, during a conference. The stake insurance providers capitalize on the companies premium that will help create a relation between the provider and consumer(company). After this, the company has to invest money in cybersecurity and be equipped for an attack or breach. According to a 2020 report, 45% of companies invest money in employee discipline and emergency management.

Meanwhile, 20% of the other companies increase their cyber insurance. The calculation of money is not cleared that how much money should be required to improve cybersecurity. Even though the risk is known, but the amount of spending money on security is still anonymous.

While evaluating the customer risk, the underwriters Search for IT, but there is no relation between IT spend and an energetic cybersecurity environment. Experts spent almost around $4.2 million last year, and novices spent about $1.3 million. The Hiscox reports recognized respondents as Experts and Novices. Spending this much money, the problem arises when the company will not detect which security regulates as thousands and thousands of security controls handle cybersecurity. As Sasha Romanosky, a policy researcher at RAND Corporation said that she will spend her money on what budget she is having and will spend the money on that thing which she thinks is reasonable.

 Companies and insurers will fill in the data which the company gets from information security providers. Then the data will be translated from security and software traders by insurers and brokers to avoid risk. Insurance companies also develop their proficiency to analyze incidents and formulate their policies. In reality, the consumer doesn’t know what controls are most beneficial. Customers didn’t have that much of an idea about cyber insurance, so the company must provide them with good work. Many arguments can be made with different hindrances, which can be helpful and can be proved justice, but we cannot say that our plans are better.

In this change, everything is uncertain, so no one can tell which technology will be best. The skepticism of this is a revolution in the cyber landscape. The attackers can be smart enough to predict the security tools, which can be precarious. So the company will provide information about:

  • Whether their company is safe?
  • Company risk behavior
  • Risk behavior is improving or not?

The whole process is like permutations and combination; the more we will combine the ideas, the better ideas we will get. Companies should subsidize more cybersecurity for safety purposes without even thinking once.

Cowbell sets a new record in the latest Series A funding round

Image of businesswoman pushing icon on media screen

What a week for Cowbell Cyber! This week, the California Based Cyber Insurance Firm announced a breakthrough in the ongoing Series A funding round after garnering a whopping $ 20 million. However, this is not a surprise. In September 2019, the company managed to raise $ 3.3 million in seed funding as per the announcement made by Stealth mode.

The series A funding round was attended by various corporate and investment organizations that have partnered with the cyber insurance firm to make this process a success. The company aims to channel the money to boost development of products, engineer potential cyber risks and generate more revenue by increasing its footmark.

The company has not disclosed the valuation of its latest funding round to the public; however, according to legit sources close to the company, the valuation is estimated to be $ 100 million. The company boasts of using simulated machines to perform risk selection and pricing and offers its services to businesses with a revenue of up to $ 1 billion.

The firm is connected to over 4,500 proxies and dealers globally with a base of 10 million organizations censored globally. Recently, the firm has grown and ventured into new markets due to embracing of AI and Simulated machine technology in its operations globally. Technology has contributed a lot in planning and deploying Cowbell’s strategies, such as implementing automatic response in detecting and curbing cyber threats.

Nowadays, the best way of securing enterprise organizations is through laying down cybersecurity procedures that ensure the total safety of company equipment, machine, and staff from being exposed to cyber threats and related risks. Led by its top executive management officer, Jack Kudale, Cowbell’s management has made the most on dealings through accelerating and involving digital platform techniques in the company to fit in an ever-evolving risk environment.

However, much focus has been placed on Cyber insurance coverage because Cowbell is an enterprise organization whose main activity is boosting growth of manufactured items through promoting deals to generate its annual revenue. Cybersecurity measures have been prioritized in the company both by the management and policyholders to obtain effectiveness and correctness when evaluating and countersigning cyber threats. The threats keep evolving, and the best way is to protect the entire infrastructure before cybercriminals exploit it.

Cowbell takes care of essential needs of its Programme and strategy makers, among them investors and business partners who play a vital role in funding activities either sponsored or functioning within the company. Automatic machine simulation has been exceptionally powerful in engaging cowbell’s marketers to identify potential clients, gather consumer needs, and process sales centered on real-time figures acquired through business analytics techniques.

The Cyber Insurance Firm uses coded algorithms and simulated neural systems to perform engineering of risks on company prospects. The risk assessment framework formed by the company is capable of detecting and managing the ever changing computer-generated risks, making it easy to focus on the company’s ultimate necessities.

Cyber Insurance Market Expected to Spike in 2021

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. 

There is need to make changes in cyber insurance strategies

cyber-insurance

Things have changed, we are moving on, cybersecurity is advancing, every day we are witnessing new cyber threats, which have risen sharply during this pandemic season. If 2020 was bad, then 2021 and years ahead of us will be worse, therefore we need to cress examine ourselves and start thinking repeatedly about cyber insurance strategies. CISOs and all the leaders involved in organizations should start prioritizing how to make their institutions more secure by providing cyber insurance strategies that resonate well with what they do and where they are going.

The latest report from the Federal Bureau of Investigation (FBI) indicated that cybercrime was a cause of a $3.5 billion loss in the year 2019, that is before the covid-19 strike. The figures also highlighted that nearly four organizations out of five acquired cybersecurity cover that protects them from cyber threats that continue to be a great challenge to many businesses. Cyber risk is growing and it’s the main cause of the need and increased demand for cyber insurance.

This figure is just a drop in an ocean, what if we include unrecorded cases, intrusions that happen without being noticed, data exposure, and other fallouts that have been witnessed when many employees were working from the comfort of their home, remotely. Cybersecurity insurance should not be taken lightly; this is because, when an organization experiences a successful attack, it may lead to great losses. The cost of incidents includes starting again to rebuild assets, loss of intellectual property, the public image being destroyed (Negative publicity) and all these can cause an organization to be fined or worse still legal action can be taken against the organization. Major software companies, security, and IT infrastructure providers’ fallout can cause breaches into government organizations’ environment. With such complications, an organization can find itself in a situation that it cannot control or even prevent, therefore there is a need to start thinking of security strategies that can be put in place to help in such scenarios.

It is so hard for cybersecurity risk to conceptualize or measure due to overlooking many factors in a business as it evolves. Therefore, there is a need for executives and stakeholders to start thinking about policies and to come up with new ways of dealing with the situation at the point of need. This is due to vast changes that are being witnessed in evolving technology world.  There are complex issues that businesses continue to face like fire in a factory, uncontrollable natural disasters, or even products being recalled. Cybersecurity insurance is something that is being introduced to the industry and it is here with us to stay because cyber threats are here to stay as long as we are having the internet and all this advancement in technology. It is evolving on what to cover, and what not to cover, on what is high risk and what is low risk, and what to charge more and where to charge less. We need to continue having this conversation on how to reduce risk, limit incidents and losses, and lowing claims for customers and carriers.

CISOs can be able to make informed decisions when they put the following advice to practice about threats and cyber insurance:-

Insurance has two contradictory aspects or possible outcomes

It is true, cybersecurity covers can have two effects, it can start encouraging cyberattacks or can be necessary. This is the truth of the matter and we cannot avoid it, it is in cybercriminal’s minds that when they attack a company, they know they’ll be compensated.  From reports, we can see that there is an increase in ransom demand, according to the research done by Coalition, a cyber-insurance provider. The demand has increased to claims that are involved.

It is even astonishing that criminals are compromising companies for them to get insurance coverage information so that when doing a ransomware demand, they know exactly what they want, and their demand is aligned to the policy details. In so doing, the probability of paying is high since the insurance policy equals the amount asked.

Defeat and conquer ransomware attacks

There need to be ahead of any hacker or even ransomware that may be used, by so doing, it makes risk manageable. An organization may have put security controls, but cybersecurity insurance comes in when all these fail. Ransomware makes an organization’s most sensitive information to be at risk, they can take access controls are even compromise the security of organizations. Experience lets us know that domain controllers are the high ground to defend an organization’s systems and network. It acts as the gateway for anything that is getting in and out of the organization’s network. Ransomware can be prevented through domain controllers. It is for the good of business to keep monitoring, doing penetration testing and vulnerability scanning to keep off any attack. In so doing, the entire network will be secure from ransomware incidents and lower insurance premiums too.

The nitty-gritty of insurance policy

Not every cyber insurance policy will cover everything that is concerning cybersecurity, some may not have coverage for some things. Therefore there is a need to know what the policy covers and what is not included in the policy. Some companies have come to an understanding that what they are claiming was not covered by the policy they took. Besides, cybersecurity is evolving and new things are coming up day by day, there is a need to review the cyber insurance policy after some time to make sure everything is covered that needs to be covered. Many companies have filed lawsuits to contest their insurance claims that deny claims due to the policy coverage. In all these, there is a lot to be done when it comes to what is covered because an incident can appear like an act of war, in such a scenario, companies can require that any exclusions impacting needed coverage can be removed.

Choose those to work with to defend the firm

Working with firms that have experience in reducing the likelihood of cybersecurity attacks will help organizations lower insurance premiums. Digital forensics and incident response firms are the best in partnering with different firms to provide such services. Also, employing managed detection and response and managed security service to help in searching networks all through day and night, find suspicious activities, and also launch effective mitigation and prevention measure is very beneficial.

Having all these measures, makes the insurers know that company is proactive in defense strategies, helping them to reduce insurance premiums. Even when worse happens DFIR partner can represent the company or its customer to come up with a deal in a bid to bring recovery and bring things to normal. This approach is one of the best where such partners help in recovering, assist in claims, and reducing insurance premiums.

It is a good thing that covid-19 happened and helped us to realize a lot is missing. Everything is now a reality, there is a need to think about cybersecurity more broadly and find more strategies to use to counter any attack and help in lowering any cost that comes with it. Every organization needs to be proactive and insurance firms do their part too. Partners need to keep their skills up. Everyone needs to work towards making cybersecurity under control.

Cyber Insurers Must Rethink Cybersecurity Amid the COVID-19 Pandemic

Cyber-Insurers

At a time when the COVID-19 pandemic was wreaking havoc on the global economy, businesses began to recognize the value of digitization. But with increased digitization come cybersecurity challenges. The risks accompanying the shift to new technologies are already mounting the pressure on cyber insurance carriers and distributors. 

The pandemic disrupted insurers’ ability to operate normally, making it impossible for them to engage with their customers. Due to the closure of offices and workspaces, remote work has become necessary for many companies. Insurers have to adapt to the circumstances and embrace the digital environment to remain competitive.

The switch to a fully digital domain has left businesses vulnerable to cyber-attacks. Insurers must, therefore, ensure that their clients are equipped to handle the rapid IT transformation to protect their valuable assets against this threat. 

But this is no easy feat, as the pandemic’s financial impact has forced many companies to undergo significant expense cuts and even halt upcoming projects.

Cyber liability insurers are facing challenges to remain competitive. As such, they must be wary of their clients making budget cuts when cybersecurity risks are already intensifying.

A recent survey conducted by the cyber risk services team at Deloitte & Touche LLP and FS-ISAC emphasized companies’ need to prioritize and invest more in their cyber protection programs. 

The survey highlighted several concerns and observations for insurers, other financial institutions, and businesses regarding the following factors:

1. Budget

FS-ISAC members reported a rise in cybersecurity expenditures. This was explained by the need for access control, protective technology, and data security by investing in emerging technologies, such as cloud, data analytics, and robotic process automation.

2. Embracing Change

Revolutionary IT changes and increasing sophistication were recognized as the top cybersecurity challenges. Companies should consider adopting a “security by design” format to reduce the threat of cyber risks during their technology development process. That will allow for more secure products and services.

3. Governance

CISOs often report directly to superiors (typically the Chief Information Officer or Chief Technology Officer). This indicates a need for closely integrating cybersecurity and information technology. However, this may result in a lack of independence for cybersecurity. Their crucial risk management decisions may be overshadowed by IT constraints.

4. Access Control

Businesses must adopt a “zero trust” policy for their operations, which means seeking verification from anyone who wants to access data, whether from inside or outside the company.

5. Adjustment

Many companies are under pressure to cut costs in today’s recovering economy. But any action taken to reduce expenses must be carefully evaluated to ensure they do not increase exposure to cyber risks, such as insider threats.

As the risk of cyber-attacks continues to grow during the pandemic, CISOs should continue focusing on achieving their long-term targets of aligning with the company’s strategic priorities. They also have to manage talent challenges and address external issues. The secret to effective cybersecurity strategy implementation is including all key stakeholders in the process. As a result, it could be useful in preventing exposure to could pre- and post-pandemic threats.

Cyber Insurance Trends: Where Industry is Heading?

Cyber Insurance

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.

New Partnership Develops To Counter Cybercrime

Counter Cybercrime

BitSight, a leading security rating firm, and risk-modellers Kovrr, have announced they will partner to create and supply a new product for the insurance market. The date-driven product is designed to assist insurance companies with financially quantifying the risk and counter cybercrime.

The joint BitSight-Kovrr product is named the Financial Quantification for Insurance Cyber Risk, and it enables insurance companies to make business decisions regarding modeling, underwriting, and portfolio management. The product combines the specialist services by both BitSight and Kovrr. BitSight’s input to the product was through their data and analytics expertise. Whereas, Kovrr provided the technology for modeling cybercrime risks.

As a result of this joint product entering the market, cybercrime insurance providers can now underwrite companies and organizations regardless of their size, industry, or geographical location. It also means that they can do modeling for specific individual risks, the exposure a portfolio has to cybercrime risks, and provide an insured party with detailed security posture visibility. One of the first major insurance carriers to make use of the product is Allianz Global Corporate and Specialty.

The product could not have launched at a more appropriate time. According to Aon, the data and analytics specialists, insurance claims arising from cybercrime are on the rise. During 2019, the United States witnessed a 10% increase in its loss-ratio due to ransomware activity. This increase is in line with an overall hike in the number of cyberattacks, including phishing, ransomware, and other cybercrime tactics.

Bitsight’s Chief Strategy Officer (CSO) is Dave Fachetti, and he gave us a brief summary of the background to the product’s launch. He stated that the cyber insurance market relies on accurate, current, relevant, specific, and transparent data. He believes that BitSight is the industry’s best provider of comprehensive organizational security and performance data that external organizations can observe. 

He continued by saying that the collaboration with Kovrr and the comprehensive automation and scalable technology for modeling cybercrime risks that they provide is fundamental to the cyber insurance industry’s success. Fachetti concluded that the joint BitSight-Kovrr product is essential to fulfill the industry’s requirement for a consistent and accurate approach to portfolio management and underwriting decision-making when dealing with cybercrime risks.

The Kovrr perspective came from their CEO, Yakir Golan. He believes that the product will enable the industry to understand the impact on an insurer’s portfolio resulting from a significant cyber incident. He also said that it would allow the requisite modeling to take place within such a scenario. Thus, the new product will contribute to the growth of the cyber insurance industry.

A further insight of the product’s benefits also came from Golan. He stated that the joint BitSight-Kovrr product would give cyber insurers the ability to fully implement various initiatives, ranging from underwriting single specific risks to managing generic risks across entire portfolios. 

He concluded that the Kovrr team was excited to be collaborating with BitSight and helping the cyber insurance worldwide.

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