That cyberattacks have been on the rise is one fact we unfortunately read every year. The cost of these attacks has also been rising steadily, standing at a global average of $4.35 million, according to the Cost of a Data Breach report. This cost is an all-time high in the report’s 17 years running and highlights the result: at the end of the day consumers foot the bill for breach costs.
But there’s another bill that is being passed on to consumers, and that’s the insurance bill that companies pay to get coverage in case of a cyber-attack. The Cost of a Data Breach report found that 83% of respondents have suffered more than one breach, and these recurring events are causing insurers to re-evaluate their risk profiles.
With more attacks taking place, they have been paying out on cyber insurance, and no longer make the same profits as risk continues to rise. Reports show that cyber insurers kept just half of the amount of premiums than they just before the pandemic. That is 27 cents of every dollar in 2021 — compared to 2019 when they earned 52 cents on the dollar. As a result, insurance premiums have been climbing sharply and policies are harder…
