BUSINESS surveillance
The growing scale of payouts has prompted the insurance industry to raise premiums and tighten their underwriting terms and conditions . price . According to recent research , almost 80 % of firms encountered higher insurance rates upon application or renewal , with over two-thirds saying these increases ranged between 50 % and 100 %.
With ransomware now representing the greatest source of cybersecurity insurance risk , both in terms of frequency and cost per incident , insurers have responded by significantly tightening their underwriting criteria .
Organisations must now demonstrate they have effective identity and access management in place , together with network segmentation and an appropriate backup and recovery strategy . In addition to these foundational controls , businesses find they need to undertake comprehensive threat evaluations and implement tailored prevention , detection and response controls .
Despite this uptick in requirements , insurance companies have simultaneously reduced the level of cover on offer and many policies no longer cover the full range of costs associated with a breach . As a result , organisations may find it difficult to recoup losses related to long-term reputational damage , the loss of customer trust or get back the complete cost of data recovery and system restoration .
Together , these issues can drive organisations to reach a pivotal decision point . Does the cost and complexity associated with getting cyberinsurance in the first place outweigh its potential benefits ?
Looking to the future : Reframe and focus on resilience
Regardless of whether an organisation makes a claim on an insurance policy or not , it ’ s important to
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