When faced with unrelenting cyber attacks, many organisations turn to their insurance company to cover their losses. In fact, according to the Harvard Business Review, in 2020 the global insurance community saw a cyber insurance programme exceed $1 billion for the first time.
While organisations of every size can find themselves under attack, the Hanover Insurance Group found that over 40% of US businesses had either no cyber insurance or limits of $1 million or less, which may not adequately cover the cost of the average cyber attack.
In response to the exponentially increasing losses associated with cyber attacks, particularly ransomware attacks where criminals demand a ransom to restore access to networks and data, a growing number of insurance companies faced mounting losses related to their cyber insurance policies and abandoned the sector. In contrast, others reduced coverage, increased premiums or amended policies to be less attractive.
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