COMMENTARY: With the increased frequency and sophistication of cyberattacks, businesses often look for comprehensive coverage and risk management solutions to combat the ramifications associated with cyberattacks. Cyber insurance, specifically, has provided companies with financial protection and peace of mind, along with numerous other advantages. No longer simply a “nice to have,” it is now a precondition of doing business. This reality means that cyber insurance is a critical element of any cybersecurity strategy.
As of 2023, the average cost of a cybersecurity breach amounted to 9.48 million dollars, an approximate 5% increase from 2022 – making cyber insurance a necessity rather than a luxury for organizations across industries. Similar to how home fire insurance would not be underwritten for a house without smoke detectors, why would cyber insurance be approved for an organization without the proper cyber protections in place? Cyber insurance acts as a catalyst for cybersecurity investment by creating a symbiotic relationship between financial protection and proactive risk management. As businesses recognize the interconnectedness of robust cybersecurity measures…
