It’s a tough time to be in business
Cyber security is an important challenge that is becoming more and more important every year. It’s tough to protect your computer and your information from people who want to steal it. This past year’s ransomware attacks have forced markets to take a step back and reconsider their strategies, as well as their ability to take on risks. This has caused a reduction or tightening of capacity in some areas. Small, medium, and large firms are all dealing with similar concerns because of ransomware insurance claims. As a result of ransomware incidents, companies across the board are losing more money. Insurers are getting more particular and detailed in their demands for clients’ security measures. If clients fail to have certain controls in place, they might not be able to get insurance.
Trends we’re seeing
Many people in upper-management positions are calling insurance underwriters to ask about the updates that are needed for endpoint security controls. It can be difficult to grasp all of the cybersecurity regulations while also enlightening the different actors within organizations on why they are required.
Adding to the breadth and depth of inquiries are questions about reliable vendors or pre-approved suppliers. At the same time, what were until recently considered best practices for IT and cybersecurity are rapidly becoming essentials. For example, companies need to have multiple levels of MFA as well as independent backups.
Cyber liability insurance costs are going up for clients when they renew their insurance. The proportion of overall expenditures spent on cyber coverage is growing at a more rapid rate than it previously has. Of course, the cost of cyber liability insurance is on the rise as the amount of cybercrime grows. This is because insurance protects businesses from the financial losses that can result from data breaches or system hacks.
With the rapid expansion and rising demands in this area, cyber liability insurance underwriters are not able to respond to application inquiries as quickly or thoroughly as they used to.
Automation is a time-saving and mistake-reducing tool because there is less rekeying information or data entry to correct. This is true for both the insurance companies and their customers.
By using scanning reports to go back to the customer and notify them of things they need to fix, brokers can offer better service. It can reveal issues or vulnerabilities with third-party connections, or operations-related issues that may have previously gone unnoticed but can now be investigated in greater depth.
Cybersecurity scanning technology can help customers find problems with out-of-date software, identify issues with third-party partnerships, save time, and reduce errors. Brokers can use scanning reports to tell their clients where they need to make improvements.
Because of all of this rapid change, cybersecurity solutions producers and insurers alike are in a unique and fascinating position. Both types of actors can inspect defenses thoroughly, as well as use and advocate for effective technology.
Cyber insurance is becoming an increasingly important purchase for businesses of all sizes. As the market continues to grow, brokers must have access to the best data to serve their clients well. With the right controls in place, we can help minimize risk and make it easier for buyers to find the coverage they need.