Since the 1990s, the acceleration of the development of insurance solutions for network security has gradually started and has been developed for more than 20 years. For example, insurance for users to avoid data loss, network interruption, and Internet risks, and to protect enterprises from first-party losses and third-party claims caused by network security accidents or privacy breaches, can be resolved through network security insurance. For consumers, the issue of data security is the primary concern. Once the data is leaked, it will cause huge economic losses. The use of insurance functions can help address cybersecurity risks. This year is the year of 5G. After the introduction and popularization of 5G networks, it will inevitably put forward higher requirements for network security. The cyber risk security insurance is one of the solutions to deal with risk losses.
Important Points About U.S. Cyber Insurance Market
- Total claims growing 39% last year compared to 2017.
- In 2018, 528 U.S. insurers reported writing cyber insurance, up from 471 in 2017.
- The growth is also influenced by offering cyber protection separately from traditional coverages.
- Of the $2.0 billion in premium in 2018, about $1.1 billion was package policies.
- In 2017, $813 million of the $1.8 billion total was packaged.
- Small and medium-sized enterprises are more likely to buy packaged policies than large firms.
- 12 million claims about breach notifications, credit monitoring, and business interruption in 2018.
Growth Has Slowed Down
According to the researches, cyber insurance premiums increased by 10% in 2018, which is far below the over 30% rates of growth posted in 2016 and 2017. Nonetheless, cyber continues to be a profitable line that is attracting new players, and despite consolidation in the industry, the number of cyber insurers in the U.S. market increased from 170 to 184 in 2018. It is too early to tell whether slower growth is a trend or if the market will resume the stellar rates of yore though, the situation looks pretty comfortable. Cyber insurers’ combined ratio reached a modest 65.3% last year, one basis point lower than in 2017.
Ransomware Is Now the Top Threat
Cyberattackers seem to realize that several smaller attacks targeting SMEs have provided an easier and more profitable path to the cyber riches. According to researches, ransomware attacks have become the crime-of-choice in the cyber underworld. In this attack, criminals prevent companies from accessing their own IT systems until they pay a huge ransom. Although the researches show that the average expenditure has decreased from $ 56,688 per transaction in 2017 to $ 50,401 last year, the value of claims seems to be going up again when criminals feel bolder as their attacks deliver the goods.
Ransomware Response and Cyber Extortion containment is LIFARS’ expertise. Our Cyber Incident Response Team provides an elite response for your organization after a Ransomware or Cyber Extortion Incident. We are able to mitigate the risks of ransomware and refine the security posture of your organization in a swift manner during the time of an incident in order to help minimize the damage and cost associated with ransomware and cyber extortion attacks.
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Credits:
https://www.insurancejournal.com/news/national/2019/06/18/529747.htm
https://riskandinsurance.com/u-s-cyber-insurance-market-updates/
