Insurance Will Reduce Cyber Losses
The increasingly serious and large-scale nature of cyberattacks is creating problems for companies and clients of all sizes and on all levels.
Organisations face the growing risk of financial loss and reputational damage, while their customers face the prospect of having their personal details fall into criminal hands.
Insurance companies are not coming out of the recent spate of hacks unscathed either. When a big client is successfully targeted, their carrier faces a hefty bill. For insurance companies to avoid finding themselves in deep water after a breach, conducting effective due diligence on prospective cyber clients, especially larger ones, is becoming increasingly crucial.
“The larger the client, the more complex the risk, and the more examination we do on an application for insurance,” says Jeremy Barnett, senior vice president of marketing at NAS Insurance. “We work to really understand what safeguards and policies each company has in place. The underwriting process needs to be more comprehensive when the risk is bigger and doing that due diligence is really important.”
More organisations, both large and small, are realising the importance of preparing for the worst when it comes to a hack. There are a growing number of resources available for companies to assess their ability to manage an attack, and savvy business leaders are beginning to reap the benefits.
As cyber risks spread, insurance companies are stepping up and doing more to help their clients before, during and after an attack. Conscientious carriers have realised that simply providing policies is no longer enough; the modern client requires a more advisory, holistic service.
NAS offers clients access to the resources that will increase their cyber readiness as well as discounts on service providers who can help them train their workforce, evaluate their network vulnerability, and review their incident response, Barnett explains.
“It allows companies to be more prepared, which has benefits on both the technology and the cyber sides,” says Barnett. “We are doing lots of things to help our clients prepare, practice and simulate cyber incidents. The more we can help them be proactive, the less likely they are to have an incident. That also means they are more likely to feel better about their relationship with us.”
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