“What’s next for cyber insurance?” »
It’s clear that cybersecurity is top of mind for Indian businesses, and for good reason. Organizations are right to consider investing $3 billion (as a collective) in their cybersecurity infrastructure, but it is important that investments are made as part of a larger dynamic security strategy that is regularly reviewed and update. Part of this strategy should include cyber insurance.
Organizations should not fall into the trap of putting cyber insurance ahead of all security measures; in fact, insurers may not provide insurance if an organization does not have adequate security measures in place. Plus, by investing and prioritizing safety, it can become easier to get coverage, lower premiums and eliminate payment barriers if you need to make a claim.
Let’s take a look at some of the top trends to know about in the cyber insurance market.
The market will continue to harden
Due to the increase in risks and loss ratios, it is becoming more and more difficult to obtain cover at a lower cost. As such, it forces organizations to better manage their cyber risks in order to reduce premiums for insurers.
It’s an interesting comparison to how the market was not so long ago. Previously, businesses could select a competing vendor with lower security requirements to get the protection they needed. This is no longer the case, with insurers having greater influence over cyber practices.
More insurers are offering pre-breach security support
Providing cyber insurance carries a level of risk for the insurance provider, which each provider must carefully manage. For example, a growing number of insurers are offering preventative cybersecurity assistance to reduce the risk of breaches.
By providing this support, insurers add value to their customers, while reducing their own risk. This is especially useful and valuable for small organizations that do not have the same resources as larger entities.
Data collaboration could reveal dynamic risk details
Data is essential for insurers to quantify risk, and they partner to obtain it, meaning they get a more accurate and dynamic view of the immediate threat landscape.
This deeper level of understanding has the potential to lead insurers to develop ‘checklists’, helping companies deal with immediate threats. While helpful, organizations should be careful not to focus solely on this guidance provided by insurers, ensuring that their infrastructure has 360° protection; Third-party security specialists should be sought if assistance is needed.
For example, Sophos Managed Threat Response (MTR) provides unprecedented protection and support for your existing security team. Most managed detection and response (MDR) services simply notify you of attacks or suspicious events, leaving security and IT teams to manage them from there. The problem with this is, what if the alert isn’t seen until the next morning? Cybercriminals will not wait until Monday morning to attack, they know well that people take the weekend and will often choose these quieter times to attack.
With Sophos MTR, your organization is backed by an elite team of threat hunters and response experts who take targeted action on your behalf to neutralize even the most sophisticated threats. By using services like Sophos MTR, you not only protect your organization from attack, but you also show insurers that you do, creating the platform to negotiate lower premiums.
In addition to directly improving security, having a policy as a safety net can be beneficial in the event of a large-scale security breach. Insurance can provide organizations with a quick transition to recover from major attacks. However, assurance should only be implemented as part of a broader strategy that prioritizes detection and protection, over response and mitigation.
To find out more, visit sophos.com