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The Cost of Cyber Insurance Just Keeps on Rising




The seemingly endless chain of companies falling victim to cyberattacks and data breaches has caused the cost of cyber insurance to skyrocket in recent years, according to a recent report.

While the affordability of password managers and similar cybersecurity tools make equipping personnel with protections a no-brainer, the cost of cyber insurance coverage creates a daunting decision for business leaders.

In fact, for some, it’s not even an economically viable option, leaving companies to bear the risk themselves.

The cost of cyber insurance

The head of international cyber insurance broker Marsh, Sara Stephens, told the Financial Times that cyber insurance prices started to rise towards the end of 2019.

In the United States, cyber insurance costs had increased by more than 100% year-over-year by the end of 2021, but have declined to an increase of approximately 48% year-on-year another in the third quarter of 2022.

Falling prices between 2010 and 2018, coupled with an increase in ransomware attacks demanding huge payouts, meant the market “had become undervalued”, Lloyd’s chief executive John Neal told the paper.

With costs now so astronomical, more and more companies are taking risks and simply not buying insurance against cyberattacks.

A dangerous time to be online

The costs of cyber insurance are rising, of course, alongside a huge increase in cyber attacks, including data breacheswhich are increasing during the pandemic.

According to 2021 McAffee data, 81% of global organizations experienced an increase in cyber threats during COVID-19.

Security firm Check Point Research says “average weekly attacks per organization worldwide” reached more than 1,130 in the third quarter of 2022, with global attacks increasing 28% year over year.

Improve your defenses

While we urge all businesses to consider cyber insurance, there are other more affordable steps you can take to ensure you’re less likely to suffer a cyber attack.

If you have staff working remotely, be sure to use a Business VPN to grant them secure and encrypted remote access to company documents, files and information.

Password managerson the other hand, will ensure that your employees not only have sufficiently long and unique passwords for their professional accounts, but also for their personal accounts, such as social networks.

Finally, cyber training is essential, even if it’s just simple initiatives such as creating fake phishing campaigns to test the resolve of staff against social engineering threats.

Taking these steps will reduce your risk of incurring the high costs associated with data breaches.