Considering today’s digital world, cyber-attacks have become increasingly common over the past decade—and with more significant financial impact. Breaches including phishing emails, viruses, ransomware, or other malicious attempts can cost companies billions of dollars.
As a result, more businesses and organizations—both small and large—are investing in cyber insurance to avoid catastrophic losses and expenses—and we don’t blame them. However, the cyber insurance market itself has changed a bit as well. Let’s discuss the evolution of the cyber insurance market and where it is right now.
what is cyber insurance?
Cyber insurance is a policy that protects your “business’ liability for a data breach involving sensitive customer information.” This sensitive information might include:
- Credit card numbers
- Account numbers
- Health records
- Social security numbers
- Driver’s license numbers
- And more
Typically, cyber liability insurance covers network security and data privacy incidents, including first-party costs and third-party claims. Remember, no business—no matter how big or small—is safe from the threats of a cyber attack today.
Not quite on board yet? Check out the shocking cyber attack statistics from AAG below.
cyber attack statistics
Did you know…
- There is a hacker attack every 39 seconds
- 64% of companies have experienced web-based attacks; 62% experienced phishing and social engineering attacks; 59% of companies experienced malicious code and botnets
- Since 2013, there are 3,809,448 records stolen from breaches every day
- 43% of cyber-attacks target small business
- Over 75% of the healthcare industry has been infected with malware over the last year
where is the cyber insurance market today?
Today, despite the increased need for cyber protection, organizations are faced with a difficult cyber insurance market. The market is characterized by:
- Rapidly increasing losses
- Non-renewal cases
- Increased premiums
- Coverage restrictions
- And longer underwriting periods due to increased requirements
how benchmark can help
The United States cyber insurance market, according to the National Association of Insurance Commissioners, expanded to $4.1 billion in direct premium in 2020, an increase of over 29% from 2019.
Our team at benchmark commercial insurance is understanding of today’s cyber insurance market—and is here as your partner to navigate insurance compliance around everyday business transactions, ensuring you have the right coverage for your risk tolerance.
Reach out to benchmark today to learn more about our dedication to providing global capabilities with our boutique experience.