As cyberattacks are increasing across all industries, many organizations want to protect themselves with cyberattack insurance policies. With billions of dollars at stake, how can insurers help their policyholders to thwart attacks and manage risk?
Cyber Liability Insurance Is in Demand
The average cost of a U.S. company data breach is $9.5 million. That potential exposure is daunting, so in order to attract insurance providers, companies must have their own security plans in place. Without comprehensive cyber protection, they won’t be able to afford – or even qualify for – insurance. By understanding the threats and educating their clients about how to strengthen their security, insurers can protect themselves and grow their businesses.
Cyberattack Insurance Is Evolving
In this young, rapidly changing industry, there is very little standardization among policies. Being able to protect against and prepare for a cyberattack is complex because there are many ways to breach data. Without understanding the breadth of risks, Insureds may not even know what steps they should be taking to make themselves insurable. They may seek guidance from their insurance companies. Accordingly, insurance companies must develop plans to accurately assess and monitor their customers.
Insurance against a Cyberattack Must Be Proactive
The insured may have a security plan in place, but in the fluid world of ransomware and hackers, that plan will need constant refreshing to ensure it can respond to the latest threats. Insurance companies need to analyze the damage both before and after a cyberattack to understand how to evolve more effective underwriting controls. These policies are not a set-it-and-forget-it product. Insuring against a cyberattack demands constant vigilance, partnerships with data and analytics providers, cybersecurity professionals, and trusted threat detectors.
Preparation for Cyberattacks Must Be Multi-faceted
In providing guidance and oversight to their clients, two of the most important security measures to be considered are a backup and resolution plan and training for employees. According to a piece in The Wall Street Journal, hackers are successful because the human brain is wired to ignore certain warnings, so the human error factor should not be underestimated.
Insurers will want to verify that there are layers of security controls in place, including endpoint monitoring and response, cloud security and response, multi-factor authentication, and file encryption. Engaging a cybersecurity firm to offer a risk assessment and recommendations before the policy is issued can ameliorate risk.
Find a Trusted Partner
The best way to avoid a cyberattack is to prepare for a cyberattack. By investing in planning and early assessment, insurers can protect themselves and their customers. Staying informed of the latest trends and risks in ransomware is essential. As trusted cybersecurity specialists, Avasek provides their clients with security consulting, vulnerability assessment, and managed detection and response, all of which will make any organization more attractive to insurers.
Find out more about how Avasek can assist your operation to protect your data and your bottom line.