Cyber Insurance – This New Necessity

Cyber insurance is a topic that typically flies under the radar when discussing the economics of cyber attacks. However, with the new year well under way, many believe that 2016 will see it take the spotlight. With high profile cyber attacks exponentially increasing over the past year, cyber insurance premiums have skyrocketed. Insurers are significantly increasing premiums for certain companies, leaving “high risk” organisations scrambling for cover. There are even some cases where insurers are limiting the amount of coverage to $100 million. With the rate at which cyber attacks are growing in both volume and complexity, it would be no surprise if this year sees firms exposed to losses that end up costing more than twice that. From a technology perspective, it’s been predicted that cyber insurance requirements will be the key driver of cyber security improvements throughout 2016. Evidently, now is the prime time for organisations to ensure that they are well protected without having to dig too deep into their pockets. – See more at: http://www.financialit.net/content/cyber-insurance-new-necessity#sthash.rLL4f6tz.dpuf