What’s next for Cyber Insurance?

The cybersecurity sector continues to grow in India, with Forbes India reporting that the country is expected to spend as much as $3 billion on cybersecurity in 2022. And it’s easy to see why. According to the Sophos State of Ransomware Report 2021, two-thirds (68%) of Indian organizations were attacked by ransomware in 2021, with 66% of organizations paying an average of $76,619.

Cybersecurity is clearly a focus of Indian companies, and for good reason. Organizations are right to consider investing $3 billion (as a group) in their cybersecurity infrastructure, yet their significant investments are being made as part of a broader dynamic security strategy that is regularly reviewed and updated. Part of this strategy, should include electronic insurance.

Organizations should not fall into the trap of prioritizing cyber insurance before all security measures are taken; In fact, insurance companies may not provide insurance if the organization does not have proper security measures in place. Additionally, by investing and prioritizing security, it can become easier to get coverage, lower premiums, and remove barriers to paying if you need to file a claim.

Let’s take a look at some of the key trends that you should be aware of in the e-insurance market.

The market will become more solid

Because of the increased risk and loss ratios, it has become more and more difficult to get cheap cover. As such, this obliges organizations to better manage internet risks in order to lower premiums between insurance providers.

This is an interesting comparison with how the market was not so long ago. Previously, companies were able to choose a competing provider with lower security requirements in order to get the protection they needed this is no longer the case, with insurers having a greater impact on cyber practices.

More insurers offer pre-hack security support

Providing electronic insurance involves a level of risk for the insurance provider, and it is something that each provider needs to manage carefully. As such, an increasing number of insurers are offering preemptive cybersecurity support to reduce the chances of a breach.

By providing this support, insurance companies add value to their customers, while reducing their own risks. This is of particular benefit and value to smaller organizations that do not have the same resources as larger entities.

Collaboration on data can reveal details of dynamic risks

Data is key for insurers to estimate risk, and they build partnerships to get it, which means they get a more accurate and dynamic view of the immediate threat landscape.

This deeper level of understanding, has the potential to lead insurance companies to develop checklists, and help companies confront immediate threats. While organizations are useful, they should be careful not to focus solely on these guidelines provided by insurers, while ensuring that their infrastructure has 360 protections; Third-party security professionals should be sought if support is needed.

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