Timing is Everything
In an earlier post, we mentioned the importance of cyber liability insurance — and the importance of putting the necessary cybersecurity protections in place so you can qualify for a comprehensive policy at an affordable rate. Well, as they always do, the market has continued to evolve, demand has continued to increase, and so have the premiums for cyber liability policies.
In a recent press release, AM BEST wrote:
Strong demand for cyber insurance and the substantial rate increases in recent years have made the segment the fastest-growing one in the U.S. property/casualty insurance industry. AM Best estimates cyber direct premiums written in 2022 to range between $8 billion and $11 billion, up from $2.7 billion just two years ago. Additionally, average quarterly price increases, albeit still high, have slowed somewhat since peaking at 34% in fourth-quarter 2021, according to published reports, at the same that insurers have become more conservative with limits and shares. Insurers have placed greater focus on managing aggregate cyber exposures given the systemic risk involved.
Translation: The cyber liability market is booming. Premiums are going up. Coverage limits are going down. Your potential for financial risk is increasing.
What Can You Do?
This is bigger than an IT issue. More than your network and your data are at stake. If you’re a business owner, a chief executive officer, a chief financial officer, or a chief operations officer, your entire business may be at risk from ransomware, viruses, data theft, damage to your reputation, and compromises to your customer relationships. Regardless of whatever ransom might be demanded after your network is infected with ransomware, is anything worth that price? Is any such risk worth taking?
What you can do is take control. If you’ve taken no steps to securing your network and your data from cyber breaches, get a cybersecurity audit that will:
- Determine the types of information stored on (or accessible through) your network(s)
- Document the number of hardware and devices connected to your network, as well as the number and types of software systems or applications in use
- Assess your overall data security
- Reveal any unknown vulnerabilities
- Make sure your hardware and software are up to date
- Evaluate whether your existing policies and training are adequate
- Determine if your people are compliant or if they pose potential threats
- Make sure their cybersecurity roles are clearly defined adequately staffed.
Will that make your organization bulletproof? No. Will it decrease the likelihood of a cyber breach and increase the likelihood of your getting a solid cyber liability insurance policy at an affordable rate? Yes.
If you want to ensure your business is as secure as possible, do it now.
Timing is everything.