Cyber insurance is expensive and insurers are placing greater demands on organisations looking for cover. Is it worth your while?
Nearly a third (29%) of organisations have seen an increase in the cost of cyber insurance in the past year, according to research by Databarracks. And two-fifths say they have seen tougher requirements from insurers.
The price hike is partly due to an increase in attacks, but also because insurers themselves are still getting to grips with this market, says James Watts, managing director at Databarracks.
“Insurers haven’t had decades of actuarial data to use as a baseline for insurance costs as they do with other risks,” he explains. “In ransomware attacks, for instance, paying the ransom seemed like the lower-cost option compared to recovering from back-ups. However, longer term it turned out to be much more expensive. What we’re seeing now is the result of that cycle over years, and insurers demanding greater preparedness and prioritising recovery from back-ups over payouts.”
Research by Panaseer suggests that 82% of cyber insurers expect to raise their premiums over…
