Here is Why Deprioritizing Cyber Insurance Has Never Been a Solution

by Jefferson Miller Marketing executive

Cybercrimes make the biggest threat to any company today. It is among the toughest challenges that the humanity has to overcome.

 

Do not take our word for it?

 

Well, research reveals that cybercrime will set the world back almost $6 trillion every year by 2021.

One other study shows that most companies follow poor cybersecurity standards and have unprotected data. More precisely, over 1,000 sensitive files have been exposed to all the employees; this fact is eventually jeopardizing an organization’s security in the form of data breaches and malware attacks.

 

Because some critical files are exposed, more mobile devices and IoT-enabled machines get easily hacked.

 

Here is where cyber insurance comes into play.

 

Discovering the world of cyber insurance

 

First of all, let us explain what was it like before the concept of cyber insurance existed?

 

Before cyber insurance gained traction, the cybersecurity segment never had a concrete answer to financial recovery after a cyber-breach happened.

 

On top of that, there is a deep-rooted misconception about cyber-breach; people think that it is just about ransomware payouts or stolen money. Instead, there is more to that than meets the eye.

 

The actual cost of a cyber-breach is related to the spiraling fees of forensic specialists, breach coaches, legal and public relations officers, and related negotiators. And the fees of these specialists may become even costlier than the stolen money.

 

Also known as cyber liability insurance coverage and cyber risk insurance, a cyber-insurance policy is built to help businesses reduce risk exposure. But how does a business do that? Well, it does that by offsetting the costs incurred during cyber security breaches or other events of a similar nature.

The trend of cyber insurance caught fire more than a decade ago; in 2020, it is expected that the total value of premiums will reach up to $7.5 billion.

 

These trends point to one thing—cyber insurance is here to stay. They even reveal the fact that most businesses need to prioritize cyber insurance or else they have to pay the financial price.

 

But the question is, what does cyber insurance cover in the first place? In general, cyber insurance covers the expenses related to the first parties and the claims made by third parties.

 

Nonetheless, there is no concrete standard for underwriting cyber insurance policies.

 

In the world of cybersecurity, there is a cliché: It is not the question of if but of when and how.

 

On closely observing the always-on cybersecurity landscape, anyone in business will know that a breach may be coming down the line. It is just that how you will be preparing to tackle it. When it comes to cybersecurity, companies that embrace a proactive approach toward cyber threats not just survive but even thrive.

 

Every company that wants to grapple with cybersecurity needs to have a solid incident response plan in place.

 

Now that it is clear what cyber insurance is all about, let us dig into the ultimate way of getting an introductory idea about cyber security.

 

Understanding the world of cyber insurance the easy way

 

Getting a handle on the complex and fast-evolving world of cyber insurance is easier said than done.

 

Which is why, it makes sense to have a proven road map for understanding the growing world of cyber insurance from the ground up.

 

That is exactly where a full-fledged course related to cyber security in insurance comes in.

 

As self-study coursework with a monitor, a good course syllabus must cover the:

• Effects of cyber-attacks on companies
• Different varieties of cyber-attacks
• Key factors leading to cyber-attacks
• Reputational and financial costs of such attacks

 

Now, what is holding you back? Find a good continuing education provider offering a cyber insurance course and discover how you can mitigate the risks of cyber-attacks.

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Created on Mar 25th 2020 07:47. Viewed 421 times.

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