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Enterprise Security Magazine | Wednesday, December 28, 2022
75 per cent of organisations experience at least one cyberattack and the average cost of a data breach is USD 4.35 million.
FREMONT, CA: The majority of company leaders are concerned with cybersecurity and risk management. About 75 per cent of businesses encounter at least one cybercrime and that a data breach costs USD 4.35 million on average. According to experts, cyber insurance is now even more important, Cyber risk is a business risk, hence cyber insurance is a must-have for enterprises. The development of comprehensive analytics tools to support risk decision-making is a key to harnessing the potential of technology to mitigate cyber risks.
Increased Risk, Opportunity in Cyber Insurance Market: According to projections, the size of the cyber insurance industry would increase from USD 12.8 billion in 2022 to $63.6 billion by 2029, with a compound annual growth rate (CAGR) of 25.7 per cent. Fortune Business Insights estimates that the market grew by more than 22 per cent between 2020 and 2021.
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The Association of Insurance Commissioners states that the largest U.S. insurance carriers received a 92 per cent year-over-year increase in cyber insurance premiums in 2021, which is in line with this growth.
The biggest potential for property and casualty (P&C) insurers in more than a century exists due to cyber risk. Cyber risk will transform risk, the economy, society, and therefore the whole P&C insurance sector in a future with billions of internet of things (IoT) devices, an explosion of data, and automated industries.
In addition, policyholders can immediately improve their risk posture and respond to developing events by adopting measures that can significantly lower the overall risk they present to an insurer. Insurers will demand that firms deploy multifactor authentication (MFA), disable remote desktop services, and have controls that need several levels of clearance.
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