Rising insurance premiums and financial restraints are forcing many businesses to give up on cyber insurance. According to security experts, a lack of insurance cover could make them more vulnerable financially. But is there a way out for businesses, particularly SMBs operating on a tight budget? Let’s hear from experts.
Cyber insurance costs increased by 102% in the first quarter of 2022. In addition, the number of companies facing coverage denials, severe coverage restrictions, or complete inability to pay for cyber insurance is expected to rise by 2023. These effects are unavoidable as the world experiences an alarming jump in cyberattacks, stricter regulations, and mounting financial difficulties due to recession.
Due to budget constraints, about 30% of small and medium-sized businesses (SMBs) discontinued their cyber insurance contracts in 2021. According to Jamie Akhtar, CEO and co-founder of CyberSmart, these numbers are highly concerning.
Cyber insurance is a vital last line of defense for SMEs, and with many businesses canceling their policies, more and more are effectively gambling that they won’t be attacked. The results could be…
