Cyber Insurance Costs Rising, Coverages Shrinking: Report
According to a report released by cybersecurity company Delinea, rates for cyber insurance policies are on the rise, and an increasing number of exclusions are shrinking the coverage provided by these policies. The report, based on a survey of over 300 organizations in the United States, highlights that 79% of organizations saw their cyber insurance costs increase, with 67% experiencing premium increases of 50% to 100% when applying for or renewing policies this year.
Delinea’s Chief Security Scientist and Advisory CISO, Joseph Carson, noted that cyber insurers are learning from their data and maturing, shifting their focus to reducing exposure to avoidable and uncontrollable circumstances. The report also found that organizations are not carefully evaluating their policies, potentially leaving themselves vulnerable when a cybersecurity incident occurs.
Insurers are increasingly using exclusions to limit their exposure when writing cyber insurance policies. These exclusions can significantly reduce the value of the policy for organizations. For instance, exclusions that remove coverage for social engineering scams or human errors can significantly limit reimbursement possibilities.
Despite the challenges and exclusions, cybersecurity experts maintain that organizations should still consider cyber insurance, as cybersecurity risks remain a serious concern. The increasing number of organizations using their cyber insurance more than once highlights that insurance is not a substitute for proper cybersecurity measures.
