Insurance Companies Eyeing the Cyber Market for Growth Opportunities
It’s no wonder that cyberattacks are on the rise as almost every other business is currently using computers to store valuable data both offline and online. Consequently, cybersecurity measures are also getting more robust, keeping businesses safe from malicious ransomware and data breaches.
Many an insurance company sees potential growth opportunities in cyber protection. Mainly due to businesses now thinking of getting themselves insured as data breaches are costly.
Two years ago, a few high-profile cyberattacks occurred — NotPetya and WannaCry — which shed some light on just how pricey these attacks can be.
According to Marsh JLT Specialty’s cyber, media, and tech practice leader, Sarah Stephens, the commotion that happened during the NotPetya attack was just an example of what business interruptions look like.
Also, people haven’t forgotten when Marriott experienced a data breach back in 2014. This cost the chain more than $100 million before fines were imposed; the company’s insurance coverage coughed up $102 million.
Currently, the global annual premiums market sits at $6 billion, according to RBC Capital Markets. They also revealed that the market was estimated to reach $15 billion by 2020.
Small, medium-sized businesses (SMBs) are the growth sector that the cyber insurance industry is currently exploring.
Reports showed that the cyber insurance sector was forecasted to reach a value of $7.5 billion next year, with SMBs being the biggest customer demographic.
Furthermore, Stephens added that they were seeing more cybersecurity measures being implemented in the retail and healthcare industries as they were more likely to experience a data breach. Also, any business that deals with data analytics and works with large enterprises or global firms was a potential target for cyber attacks as well.
Thanks to cyber insurance, payouts will be made available in the case of any attacks occurring. Additional insurance services are also offered, aiding clients in restoring their hacked systems. These include negotiations with ransom demands done by expert negotiators, forensic investigators, public relations experts, and more.
Cyberattacks remain a serious and constant threat for businesses both big and small. Still, companies can safeguard their most valuable assets and protect their data by getting insured.