Breach insurance premiums are on the rise and expected to grow tenfold over the next decade from $2 billion to $20 billion. The number of underwriters also is growing.
This rapid growth in breach insurance premiums and underwriters come as large breaches are becoming more frequent and the expense associated with containment and clean up continues to increase.
Despite this growth, underwriting remains dependent on intensive expert review. This isn’t scalable or efficient, which has caused the market to recognize the need for quantitative cyber risk assessments for enterprises. This is valuable not just for insurers but for businesses themselves, which tend to have a hazy view of their cybersecurity posture. Consider this: A FICO survey conducted earlier this year with Ovum found that 68% of U.S. firms believe they are better prepared for data breaches than their competitors — which is statistically unlikely, to say the least.
In recent years, new entrants have emerged…
