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Consumer tension on the risk of sharing data to insurers

share data

Consumers continue to change daily and are now more willing to share data concerning their health and lifestyle habits with the insurance firms in the hope that premiums will be reduced. Things keep on changing, consumers are not left behind. Recently, new evidence on the expectations of people from insurance firms has shown many changes that need to be worked on for the industry to grow.

Research and survey dubbed “Global Insurance Consumer Study” of more than forty-seven thousand people were contacted around the world, determined that consumers have reached a point where they are comforted sharing information and data to insurers.  Even though the same survey shown consumer trust in insurers to take care of the same data has gone down, this has not stopped them from sharing information with them.

Mr. Kenneth Saldanha, an insurance lead in Accenture Global added that he saw great desire that was reflected by the change in their living patterns. In addition, he noted a shift in usage and behavior-based pricing too. All that has been realized by the willingness of customers to share data that is being used to provide them with the right pricing that is aligned with the behavior. For all these to happen trust has been the key factor from both parties that have provided confidence that the data is going to be used accurately but not to be misused.

A lot has changed during this time of the covid-19 pandemic and the world of auto insurance has become a talk of the day. Usage-based insurance is what everyone is getting accustomed to and many markets, globally are moving towards that due to the new norm of working remotely, at home too. The change of what customers want has affected the way insurance works nowadays, behavior changes at home during this pandemic has impacted a lot on what customers want and insurance has left that room for a change because if this is not taken care then the business will be affected by the changes.

For example, personal cyber insurance covers can be affected when, for instance, Wi-Fi router becomes more secure, by having stronger antivirus, combining it with hard to guess Wi-Fi password. In so doing, that behavior change means that this individual will feel that paying personal cyber insurance may be something that he or she does not need, therefore for this to work out, lowering pricing for such should be wise.  Paying less will be a wise decision for insurance cover to continue. Such information would help insurers to know how to price their policies so that to stay relevant in the market.

Accenture survey showed that most respondents were willing to share data to insurers concerning their health, exercise and even driving habits in exchange for lowering prices. There was also mistrust from thirty-two percent of consumers. Mistrust is not only caused by the insurance industry alone, but it is being witnessed everywhere. Mr. Saldanha noted that there was a general sense of sensitivity and increased fear among consumers due to an increase in risk.

Loss of confidence is not something that should cause alarm, as insurers have nothing to do with it, but it needs to be taken care of. Insurance companies should rise to the occasion and show that they have the man-power to deal with it by having the right data resiliency, putting in place security in their systems, and having response measures in place in the event the worse happens. Insurers should have a conversation with organizations so that they put the right technology infrastructure to guard themselves against cybersecurity attacks so that there is surety for information and data.

Cowbell Cyber Launches Program to Connect Policy Holders With Risk Management Services

Cowbell Cyber has announced its new partner program to provide insureds with extensive, closed-loop risk management services. The program aims to address and alleviate cybersecurity incidents more effectively.

Cowbell Cyber is the pioneer AI-powered cyber insurance company in the industry. It offers cyber insurance plans to small and medium enterprises (SMEs). 

The partner program, called Cowbell Connect, combines cyber liability policies with risk appraisal, quantification, and alleviation. It also offers pre-incident and post-incident remediation services. 

With its new program, the company capitalizes on a plethora of prowess and resources from multiple partners to respond to the most significant threat of modern time: cybercrimes. 

The program partners include data scientists, cybersecurity providers, digital risk mitigators, and more. 

Data Aggregators

These partners include DarkOwl, Advisen, and Dun & Bradstreet – all of them already building up Cowbell’s signature attack surface surveillance tools. They play a critical role in Cowbell’s risk appraisal expertise. 

Cloud Providers

Cowbell has partnered with Microsoft 365, Azure, AWS, and Google to manage a sophisticated system for its clients, including email platforms, teamwork technologies, app solutions, and more. Cowbell Connect uses APIs to make these solutions and services work together. The insureds can use these cloud providers’ expertise to get insights into cyber risks and get expert recommendations to build better risk profiles. 

Cybersecurity Platforms 

Cybersecurity platforms provide surveillance and management services for individual facets of a company’s cybersecurity. 

Cowbell has partnered with Qualys for risk exposure, regulatory compliance, and container security and Security Studio for MSSPs under the new partner program. 

It is also using Safeguard for cybersecurity of social media, teamwork technologies, and business correspondence tools. 

Training Providers

The company uses Wizer as a cybersecurity training partner. Wizer is a household name in cybersecurity education, awareness, and training. It will now train the employees of Cowbell’s clients in preventing attacks like phishing and cyber ransomware. 

Managed Service Providers 

The managed service providers will look after Cowbell policyholders’ security by providing advisory, managed, and sub-contracting services. 

Incident Response Services

The incident response providers will work as part of the company’s claim teams. They will assist with post-attack events, such as ransomware incidents, forensics, legal aspects, and business restoration. 

Digital Platforms and Ecosystems

The new partner program incorporates many different digital channels and ecosystems, such as brokers and agents, networks, reinsurers, and networks. 

Industry Associations

This includes individual insurance brokers and agents from IIAB, insurance agency owners from IOAO, the Insurance Connector, and more. 

Cowbell Cyber is one of the largest cyber insurance providers globally, with a presence in more than 100 countries and 50 US states and the District of Columbia. 

The company brings independent, admitted, and customized cyber liability plans for SMEs with revenue not exceeding $1 billion. It offers business cyber insurance coverage of up to $15 million on AM Best “A” rated paper.

Insureds can learn more about the Cowbell Connect program by visiting https://cowbell.insure/partners/

Uncertainties in cybersecurity insurance

cybersecurity insurance

Like every other risk, cybersecurity is a risk that needs insurance coverage as it has the potential of causing loss of information, data, or valuable items. Cybersecurity has brought up a new chapter in insurance.  Insurers are coming up with new measures that must be adhered to before qualifying for coverage. Due to changes that have been brought up by cybersecurity, organizations are becoming accustomed to new insurance measurements that are mandatory. There are still uncertainties of the best way insurance can use to deal with cybersecurity so that the information, data, and networks are secure.

Insurance has a role to play in cybersecurity development. Bryan Hurd, a vice president in Aon Cyber Solutions stated that in the 1800s insurers has played a role in designing pressure relief valves for the steam engine power. They stated that it was mandatory if the insurance was to cover, then such piece of architecture was to be implemented, thus droving security and in so doing helping themselves to avoid large insurance claims. In so doing, insurance has been able to make sure they are safe from paying large claims.

In Cybersecurity, there is a lot to be done. In cybersecurity areas that are growing fast, cyber engines always keep crashing and causing disturbances in many organizations. In such areas, cybersecurity insurance companies continue to keep an eye on it because it is where the money is.

Covering cybersecurity has not been easy due to uncertainties that revolve around the cybersecurity industry. The relationship between enterprises and insurers has been hard due to the cost that comes with mitigation of breaches that is too costly. Not to mention the cyber losses that can be devastating. For example, in 2019, Hiscox reported that cyber losses were over $1.8 billion. Most companies continue to yearn for such coverage that will cushion them when disaster happens, insurance to continue looking for such a lucrative stream of revenue. There are many challenges that is being witnessed in coming up with terms of coverage and pricing.

There are reported cases where insurance companies refuse to pay claims by avoiding large claims. For example, Mandelez Internation did not get the insurance claim they wanted after NotPetya attack. This is because the insurer evaded the claim by stating that it was an act of the Russian government and the attack fell under the hostile or warlike action in time of peace. By doing so, the insurer avoided paying a large claim that was supposed to be paid. Looking at such an example, cybersecurity insurance policy is still yet not clear on how to cover; there are loopholes insurers are using to avoid claims.

Ensuring cybersecurity is still evolving and there is a lot that needs to be done. Insurance companies need to keep on collaborating with cybersecurity industry experts to help in driving it into maturity. Things are continuing to change, every year, there are improvements and awareness has grown. Due to the increase in cyber incidents and ransomware attacks, insurance providers and organizations are focusing on making things better by redefining policies. Through such engagements, it will be good for businesses as insurers will get better visibility into cyber risks and ultimately will help in putting measures they will keep operations secure and compliant to regulations. In addition, there is a need to make sure that any improvement that will be made is aligned with best practices and fit the business.

Insurance demand more systematic proof of security best practices is in place before they can think of insuring companies. This may range from configurations, antiviruses used, awareness and training to employees, and many more. Another issue is how insurers can be able to value data, this will help in knowing how to cover high-value data and low-value data. Even global pandemic should be viewed as a point to be researched. Insurers need to know what to do in the event of a global pandemic.

Credit Firm Investigates Massive Brazilian Data Breach

Data Breach

UK credit firm, Experian, has confirmed it is conducting an investigation into a massive data breach in Brazil. Millions of people’s data are being illegally sold online, and the breach could be connected to Serasa, Experian’s Brazilian subsidiary.

The breached data being sold includes Social Security details, photographs, social media information, and vehicle registrations. Serasa does not collect this type of data, so Experian claims that their security has not been compromised.

However, despite Experian down-playing any security issues, the market did not seem to be buying their story. Shares in the corporation dropped 2% following the news of the breach.

Brazilian news media outlets report that over 200 million people’s personal data may have been involved in the breach. However, no-one is giving definite indications of where the breach originated.

This latest incident is not the only security breach Brazil has suffered recently. Around one year ago, health insurance provider, Hapvida, was the victim of a cyberattack that put its customers’ data at risk. Embraer, a plane manufacturer, based in São Paulo, was targeted by cybercriminals in another cyber-security breach. 

The attack on Experian is not the first time a credit agency has been targeted. In 2019, American credit agency Equifax settled a claim for a data breach of its customers two years previously. Settling the claim cost the company $700 million.

Unfortunately, many emerging economy nations with large populations, such as Brazil, tend to have fledgling cybersecurity procedures. They create massive databases full of personal information, but these generally come with little attention placed on cybersecurity. 

The recent incident, allegedly involving Serasa Experian, is the largest security breach any Brazilian organization has suffered. It is the sheer scale of the violation that leads many experts to point at the credit-scoring agency. 

It is challenging to understand how such a leak could occur, given that Brazil has only recently adopted its LGPD (Law for the Protection of Personal Data). Of course, having a law is only the first step to providing personal data protection. It is the implementation and enforcement of such laws that make the difference.

However, there is some skepticism around the LGPD. Indeed, an attitude of security around personal data must be embedded into businesses and organizations’ culture. Otherwise, any laws are merely for show and have little weight.

For instance, Brazilian authorities currently offer scant advice on how to conduct audits of personal databases. However, they have plans to create a digital identity system for its citizens. This move may be another small step on the path of Brazil giving teeth to its cybersecurity laws.

What is for sure, there is still much work to be done. Many Brazilian organizations remain unaware of the new law protecting personal data. Also, Brazil has an acute shortage of qualified cybersecurity professionals. Addressing these two issues is critical if Brazil is to avoid similar data security breaches like those they’ve recently suffered.

New York Regulator Issues New Cyber Insurance Risk Framework

Cyber Insurance Risk Framework
businessman hand show 3d mobile phone with padlock as Internet security online business concept

In the wake of the rising cybercrime across the world, the New York State Department of Financial Services (DFS) has announced a new Cyber Insurance Risk Framework. The framework sets out the best practice for the New York regulated property and casualty insurers, so they can effectively manage their cyber insurance risks. 

These new guidelines are the output of DFS’s time-honored work in the cybersecurity insurance niche. In 2017, the DFS started the nation’s first cybersecurity regulations. Two years down the line, it established a Cybersecurity Division, the pioneer among US service regulators. 

The new cyber insurance risk framework encourages insurers to include the following best practices into their risk strategy:

Remove Exposure to Silent Cyber Insurance Risks

Silent cyber insurance risk derives from an insurer’s commitment to cover loss from a cybersecurity breach under a policy that does not clearly state cyber incidents. Managing and eliminating exposure to such risks is a core component of the new cyber insurance risk framework.

Slice and Dice Systematic Risks

This includes the outcomes of destructive cyber events for vendors like third-party service providers. Case in point: SolarWinds supply chain attack!

Accurately Assess Insured Risks

Employ a data-driven strategy to evaluate possible loopholes and risks in insured cybersecurity.

Create Awareness Among Insurance Providers and Insureds

Insurance providers and insureds have to be educated about the importance of cybersecurity and its benefits and limitations. They also need to be aware about the risks of disregarding cybersecurity best practices.

Develop Cybersecurity Prowess

Insurance providers and insureds are encouraged to capitalize on cybersecurity expertise using prudent human resource recruitment practices.

Notifying Law Enforcers

Law enforcers must be notified immediately when a cybersecurity incident takes place. 

This new framework is a product of DFS’s correspondence and coordination with the insurance industry and cyber insurance experts. The team that drafted the framework included all relevant stakeholders, including insurance providers, insurers, cyber experts, and insurance regulatory authorities from the US and Europe. 

As per the guidance, the DFS calls on regulated insurers to establish a proper strategy to measure cyber insurance risk with the insurer’s size, resources, and geographic coverage. 

With the recent rise in ransomware, as witnessed by the SolarWinds-based cyber-espionage campaign, cybersecurity is of utmost importance in every aspect of modern life and business. The COVID-19 pandemic has done its part in shifting everything online from schools to offices, so there is now a greater risk of cybercriminals capitalizing on security loopholes. 

Ransomware attacks have increased in frequency in recent years and they’ve proved to be too costly. A 2020 survey found that from 2018 to 2019, the number of cyber ransom claims has risen by 180%, and the average cost of the claim has increased by 150%. The breaches reported to the DFS have also seen a spike in 2020. 

Insurers play a vital part in alleviating cybersecurity risks, and they have certainly stepped up. But there’s still a long way to go because the risks are resulting in billions of dollars in losses every year.

How cyber liability laws and policies are beneficial for us?

cyber liability laws

As technology accelerates, companies use digital devices and computers to send or receive data within or across the organization. This data is kept secure for security and privacy issues. Whenever an intruder steals the private data of an organization, it affects the reputation of that company.

All multinational companies and software companies do not want their data is exposed to some hacker or any other party. For example, the billing information of a patient is sensitive for billing companies. So, they work hard to keep it safe and secure. If the data is compromised, then the patient can also sue you in court.


There are two types of cyber liability insurance coverages:

1. First-party coverage

2. Third-party coverage

These policies and rules cover financial losses that may occur due to cyber-attacks and security breaches.


First-party coverages involve the expenses that the company has to bear while informing their clients about the cyberattacks. Below are the types of first-party coverages that are in cyber liability policy:

• Loss / Damage to electronic data

•  Loss of income

•  Cyber Extortion

•  Effects your reputation

Loss / Damage to digital data:

It covers the finances to restore the lost data, applications, programs, and sensitive information. The loss may be of any kind such as a security breach or cyberattack. Moreover, policies also cover the cost of recruiting advisors and consultants to provide consultation services to restore the data.

Loss of income:

It covers the loss of your income or expenses that occur when your business gets failed because of your computer system failure.

Cyber Extortion:

Cyber extortion or threat occurs when an intruder hits your computer and tries to steal precious data by injecting a virus or initiating a denial of service attack (DOS). The cyber extortion policy covers this loss.

Effects your reputation:

People usually invest a lot of money to maintain their reputation and regain the market of their company. Good firms tend to rebuild the trust that they have lost as a result of security breaches. It includes the cost to rebuild that reputation.


Third-party liability coverage refers to the claims that people and other firms have used against your company because they are affected by some means. For example, a person sues your firm in court after a hacker steals personal information from your computer and makes them online. Below are the types of third party liability coverages that are in cyber liability policy:

•  Network security and privacy liability

•  Electronic media liability

•  Regulatory Proceedings

Network security and privacy liability:

It covers the claims against a firm for DOS attack, virus injection, or other security breaches. It also claims against the companies that have failed in protecting their customer’s data.

Electronic media liability:

Electronic media liability insurance covers the claims against you for illegal acts like a patent violation, copyright infringement, privacy invasions, etc. Moreover, you can claim it when your data or publication is available on the internet.

Regulatory proceedings:

Regulatory proceedings cover fines or punishments forced on your firm by administrative offices that supervise information break laws. Likewise takes care of the expense of recruiting a lawyer to aid your reaction to an administrative proceeding.

London remains global cyber insurance hub post corona virus breakdown

cyber insurance

According to the study conducted by the City of London Corporation and Accenture, London has been a hub for the growth of the cyber insurance market.

They initiated a report titled “The Future of Cyber Insurance – Next Steps for the London Market. The report stated that cybercrimes are at their peak especially after the COVID-19 breakdown. They are the biggest risk to the world’s economy as modern technology is becoming normal in our daily life and environment.

Unfortunately, the cyber attackers have also used this deadly pandemic for their own sake and against many multinational organizations. The stats from the National Cyber Security Centre showed that from September 2019 to August 2020, there was a 10% increase in overall cyber incidents and 194 were related to COVID-19. We can clearly infer from the above stats that cybercrimes are really something to think about and the cybersecurity industry have to take serious actions against them.

Renowned businessmen say that they cannot afford the costs they had to pay to be resistant against cybercriminals. As per the report, most business pioneers and leaders are facing a constant rise in the costs of cybersecurity. More than 65% of these business leaders say that they can’t move one step ahead of cybercriminals as the costs are horrendous and they can’t afford it.

London is a great city to satisfy the developing need for cyber insurance and remain the pre-prominent worldwide center. Moreover, it also stated that how London’s cybersecurity environment and insurance industry can work together to accomplish this and the advantages it will have for the more extensive UK economy.

The report has also mentioned some key opportunities and challenges such as:

•     Ensuring the UK takes a lead in setting principles with respect to cyber insurance items and sharing information to help shape the worldwide cyber market.

•     Meet with cyber officials and contact with arising cyber insurance markets to accentuate the advantages of putting the business in London.

•     Supporting the cyber flexibility of UK PLC in the midst of developing household interest for cyber insurance.

Catherine McGuinness who is Chairperson at the City of London Corporation, says that London is one of the leading cities in both the insurance and cybersecurity areas, so it is just normal for it to play a main role in the cyber insurance space. The City of London has a significant part to play in supporting the capital’s reappearance from the pandemic. Marketing London as a worldwide cyber insurance center point majority of cross-industry partners will be vital to its prosperity.

Moreover, she also stated that besides the financial advantages, boosting London’s status as a cyber insurance center will likewise improve the cyber flexibility of UK organizations more comprehensively.

In addition, the UK Minister of Investment says that London is a global leader in cyber insurance and assumes a pivotal part in boosting development in this area. From our energetic and competitive system of law offices and dynamic insurance network to our driving security firms, we will keep on supporting the UK’s cybersecurity environment to help UK organizations to create and develop.

Cyber Insurance – Increasingly Important As Threats Rise

Cyber Insurance

Advisen Ltd. surveys show that businesses are starting to treat cyber liability insurance more as a necessity and less as a luxury as existing clients increase their coverage limits and bigger numbers of customers enter the market.

Zurich North America and Advisen conducted a global survey of insurance buyers and risk managers and report that the take-up rate for cyber insurance is still climbing, with 78% of respondents having bought cyber liability coverage. More than 50% of respondents had bought stand-alone policies, versus 34% who had purchased any type of cyber coverage in 2011, the first year that the annual survey was conducted.

According to Zurich North America’s head of professional liability and cyber, Michelle Chia, clients have been happy with the coverage as more claims start to be processed. Chia said in an interview that satisfaction with the response of carriers to breaches and other cyber events was high and steady.

Chia added that as cyber threats and the associated liability has moved to the top of risk management strategies in many organizations, more than 80% of respondents indicated that they didn’t reduce their cyber risk spend during the COVID-19 crises, despite economic difficulties. Most companies who made changes to their cyber risk budgets in fact increased these and are looking for more insurance.

This may be due to clients understanding that the unexpected increase in working remotely will likely increase their vulnerability to cyber compromises or breaches. 

Threat Visibility on the Increase

Advisen conducted another survey with PartnerRe Ltd. among brokers and underwriters globally, and this indicates that insurance buyers are increasingly becoming aware of cyber threats. News of losses and breaches, as well as cyber-related losses in their own organization, are the main reasons cited by companies for purchasing cyber liability. Over the last two years, the number of organizations brought to a standstill by ransomware attacks has increased dramatically, as has the dollar demands by attackers. This exposure has now risen to the second spot in the coverage demand area for both existing and new customers.

According to survey respondents, senior management and company boards are increasingly driving the initiative for online exposure insurance cover.

Responses to these surveys indicate market sentiment is moving toward tighter terms and conditions, and higher prices after years of slight losses that resulted in underwriters expanding coverage for premiums that were relatively low. Besides the complexity of coverage and risk that is still turning away many potential insurance buyers, price is still one of the major barriers preventing the close of a cyber policy sale. In spite of demand that is robust, these trends seem to be at odds for growth.

According to Jack Kudale, the CEO of Cowbell Cyber Inc., that creates opportunities for smaller insurance companies with agility enabled by technology. Cowbell in 2020 started selling policies using its own cyber risk assessment brand that gauges vulnerability continuously. Kudale said in an interview that clients are able to better appreciate and understand what they’re buying when digital risk is addressed holistically.

He added that to overcome that price barrier challenge, it was crucial to bundle the cyber insurance policy with the risk that is seen. 50% of the companies in the small market Cowbell sells to are new buyers of cyber insurance.

According to Chia, Zurich North America’s market approach is similar, and they offer their service as a collaborator in strategic risk management. Her companies do this by partnering with vendors who train employees to mitigate risk and help monitor exposure. 

Chia added that this was the key of how they wanted to help protect companies when they manage their cyber risk.

2026 forecast for cyber insurance

cyber insurance

The future of cyber insurance policies is becoming brighter due to advancement in technology. A lot of advancement in technological aspect is happening many changes are happening and new better ways are either being used or on pipeline, developing as new ideas come up. Even when this is happening, not much has been put into consideration on the security of all these advancements in technology. The research has done on crucial elements that thoroughly give analysis on the cybersecurity future with present and past timelines innovative developments have shown the future will highly depend on securing the use of technology. 


Therefore, cyber insurance will have its share of it too. The research report has considered many factors that have taken account of the history and future timelines too. It also has brought into consideration the growth and forecast estimates even when there is volatility in the market. Increased digitization adoption of computing in the cloud, advanced mobile technology, increased usage of Internet of things and over reliance of different online services to make work easier will play a major role.

Covid-19 impact

The outbreak of covid-19 is a crucial factor in the cyber insurance. Many institutions have been forced by circumstances to operate at home and continue working using the internet virtually. Therefore, virtual offices have made every institution continue relying on online resources such as zoom and other applications.  By 2026, cyber insurance will grow and become a mandatory in many countries, this will make it become a regulation to keep organizations secure from cyber attacks.

Changes that will happen after this pandemic will propel growth in insurance, as most companies and institutions will look at the market from a different perceptive. Of course, the market will grow drastically due to everyone will want to be secure as the increasing number of breaches and cyberattacks will skyrocket making many companies incur losses and this will force many organizations to adopt cyber insurance policies to help curb the vice. This means that the cyber liability segment will continue to expand holding a large market size. 

Government regulations influence

There will be potential growth in different areas like application usage, service model, and cybersecurity of institutions, network used and many other areas. Besides, there are many speculations that government regulation will change towards the adoption of different insurance policies for many institutions to help them increase their security on online resources used and their online presence too.

Sophisticated Breaches and attacks

By 2026, there are speculations that cyber-attacks will be more sophisticated than now, therefore, there will need stringent regulations that will force many organizations to have cyber insurance policies that will be a solution to these sophisticated breaches. With such policies in place, it will be easier for insurers to give assistance and prevent the post effects of a successful breach that if not well take care of; the organization or business may never recover from the attack.

Exponential growth in the Asia Pacific

Asia Pacific (APAC), which comprises Australia, New Zealand, China, Singapore, and Japan, will have a great increase due to developed systems and infrastructure already constructed to curb attacks. Other factors that will lead to an exponential growth rate is because of the increasing use of Machine Learning, ever-growing Internet usage, analytics science, Blockchain advancement, as well as Artificial Intelligence. There are also having many small and medium-sized enterprises that are still growing, and all these would need cyber insurance covers.

The insurance market will keep on growing as long as the world continues to advance in the use of technology in different areas like banks, the healthcare sector, business services, and all other areas too.

Cyber Insurance Guide — Coverage Selection to Post-Purchase

Cyber attacks and data breach violations are becoming more common than ever. Many small to large-scale organizations fail to withstand these cyber-attacks and face huge financial losses.

Around 55% of small businesses faced cyber-attacks and data breaches, and 53% of them claim to face multiple breaches one after another. Small businesses are equally vulnerable to such attacks as large organizations.

These unstoppable breaches can ruin your business reliability and cause financial loss. Such attacks also put everyone in your business at high risk. The single smart approach to cope with such attacks is to get Cyber Insurance.

All Cyber Insurances keep their diversity, just like other insurance types. This article provides you a step-by-step procedure to select the right insurance after having a deep look at their policies and coverage but first, let us explain the term Cyber Insurance.

Cyber Insurance — Explained

Cyber Insurance is a kind of insurance policy for companies, corporations, and organizations to cover their liabilities in case of a cyber-attack, where sensitive information of the customers is compromised, such as Social Security numbers, account numbers, credit card numbers, driver’s license numbers, etc.

If we exclude the legal expenses and fees, then Cyber Insurance usually embraces the following elements. Your coverage also depends upon the cyber insurance service you buy, but this is a general coverage overview:

●       Alerting Customers about the Cyber Attack or Breach

●       Restoring Identities of Victims

●       Recovery of breached Data.

●       Repair and Recovery of Damaged Systems

Cyber Insurance Coverage

It’s mandatory to know the coverage patterns of the insurance you are buying. All cyber insurances do not offer the same type of coverage, and their strategies contrast as well.

Common Cyber Insurance providers cover the following angles:

Remediation Services: An instant response is required right after a breach, and remediation serves this purpose, and it includes a number of services such as forensic services, legal fees, customer notifying costs, PR services, credit monitoring, etc. Some insurers have response teams ready to cover the breach, which benefits smaller organizations to a large extent that have no dedicated security team.

Privacy Liability & Information Security: There are certain privacy-related claims and laws against security violations, and insurers tend to cover all these damage expenses. Investigation and Legal expenses are also covered in different coverage packages.

Regulatory Penalty Defense: All costs relating to regulatory actions are covered; these costs include fines, legal fees, penalties, investigative costs, etc.

Lost Revenue & Operability: The business interruption costs are covered along with the lost revenue of the organization to make it fully functional after the breach has passed. The lost revenue coverage is not instantly given, but insurers move to it slowly. Moreover, the business suspension costs do not apply to those businesses where the breach happened due to a third party or cloud vendor.

Media Liability: The insurer covers all media liabilities, including copyright infringement, plagiarism, libel, defamation, to prevent huge financial losses.

Cyber Extortion: If hackers try to negotiate with Ransomware attacks or recovery passwords, then all decryption, investigation, and recovery costs are to be covered by the insurer.

Coverage Selection

Cybersecurity insurances allow you to transfer cyber threat risk to any other insurance company that is held responsible for any data breach or attack on your business. Before you approve cybersecurity insurance for your company, it’s important to know what is included or excluded.

Every enterprise and organization operates in a different way, and they need to have personalized coverage selection criteria that suit the organization.

Selection Tips

The selection and overall review are needed prior to finalizing some Insurance plan, and these tips can assist you during the coverage selection process.

Involve Right Expertise: The right coverage strategy is made with professionals from different areas. These experts may belong to different areas such as IT management, legal counsel, risk management, and cybersecurity professionals.

Catalog your Data: You should specify the type of data your organization stores to check if it’s sensitive enough. Check if any security policies and regulations apply to this data. You should consider these points before making any choice.

Analyze Risk Scenarios: It is ideal for conducting yearly risk assessments for continuously analyzing any potential threats residing in your system. You can prioritize these cyber risks based on their intensity and transfer any potential threats that you do not intend to handle.

Research Insurer: All insurers do not offer coverage to the same extent. You should check the previous records to see if your insurer was involved in any court battles due to any lawsuits. Many insurers also offer extra useful resources such as policy templates, training videos, etc. It’s always beneficial to ponder such points.

Insurance Quotes: Once you know your coverage requirements, then get in touch with Cyber Security insurers and receive multiple quotes and offerings.

Assess & Select: You have to analyze quotes and coverage criteria given by several insurers. Choose the option that meets your demands and the budget you specified.

Review & Adjust: The cybersecurity scenarios will keep changing, and you have to keep evaluating your insurance terms to make any needed adjustments.

Bought Insurance Plan? Next Steps

If you have successfully signed an insurance plan, then review all processes and requirements for filing a claim to the insurer in case of a data breach or cyber attack. Many insurers have a policy that you report the incident in a specific time frame or otherwise; your claim will be denied. Watch out for such policies and stick to them.

Moreover, it’s also important to guide your cybersecurity response team about your insurer terms and the right time to approach them.

Do not miss out on any free resources provided by your insurers. These resources can include security training, cybersecurity portals, and other facilities that can be beneficial for your employees and company.

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