Cyber Insurance Costs too high? Consider This
Today’s message will focus on various things to consider when deciding how to be protected from cyber security risks. Many companies are frustrated as prices of cyber security insurance continue to rise and are beginning to look for alternative options to suit their needs. Some are under the belief that purchasing compensatory controls may be a more worthwhile investment for tackling cyber security risks, but there are some things to consider when making adjustments to your coverage.
Some argue that cyber insurance prices dropped too low before the sharp increases in claims made over the past few years and the costs of individual claims becoming more expensive for insurers as well. A common theme seen in cyber attacks recently has to do with Ransomware attacks. In a ransomware attack, hackers seize information or software owned by a company and offer a ransom amount in order to give back access or put software back online. The type of currency involved in a ransom often varies as some require cash related payments and others require certain cryptocurrencies to be paid as ransom to recover information. Because the information or software taken is of high value to the company it was taken from, the costs can become very steep depending on what exactly was seized.
While many companies are becoming frustrated about the rising prices of insurance, it is still important that you do not abandon your policy completely. The risks of being involved in an event is still of high risk, so relying solely on compensatory controls to prevent an attack may decrease the short term cost, but still leave you with substantial vulnerability in the event of an attack. Fortunately, only a handful resorted to this option and many have decided to engage in more of a hybrid approach. This seems to satisfy coverage needs and means of prevention without having to break the bank to afford an extensive cyber insurance policy.
References:
https://www.ft.com/content/753e76db-e9cc-4c90-985a-f354dbc5c9a4
https://reciprocity.com/resources/what-are-nist-controls-and-how-many-are-there
