Cyber Insurance is not a new concept — it has existed in one form or another since the 1990s.
However, technology has advanced more in the last three years than at any other point in recent memory.
COVID-19 Has Changed Cybersecurity
- Businesses were forced to embrace technology.
- Secure systems to safely access company data
- TeleHealth Platforms
- Monitoring solutions
- Remote collaboration tools
- Threat surfaces are more complex than they’ve ever been
- Supply chain attacks are on the rise.
- Cyberattacks are growing in number and ingenuity.
The Current State of Cybercrime
- A cyberattack occurs every 39 seconds.
- In 2021…
- Ransomware increased by 62% YoY
- Six ransomware groups compromised 292 organizations for $45 million total.
- The cost of the average data breach increased to $4.24 million
- Nearly 90% of businesses experienced at least one successful cyberattack.
- Cyber Incidents cost an average of $1.8 million/minute
- Critical infrastructure is increasingly targeted.
- Cybercrime costs $600 billion USD every year, or 0.8% of global GDP.
- The cyber insurance market is expected to be $27.84 billion USD by 2026, a 74% increase from 2020 — there are several very good reasons for this.
Start Getting Value With
Centraleyes for Free
See for yourself how the Centraleyes platform exceeds anything an old GRC
system does and eliminates the need for manual processes and spreadsheets
to give you immediate value and run a full risk assessment in less than 30 days
The Case for Cyber Insurance
- The Colonial Pipeline Breach
- Gasoline services were disrupted, leading to shortages and price increases.
- Colonial paid $4.4 million in bitcoin to restore its systems.
- Although the ransom was retrieved, the identity of the hackers is still unknown.
- Incidents like Colonial drive home the need for cyber insurance.
- Data breaches are costly
- Cyber incidents are a frequent issue
- Customers are happier knowing there’s coverage
- It cannot prevent cybercrime, but it provides a means of safeguarding against costs borne from:
- Communication
- Recovery
- Loss of Data
- Theft of digital assets
- Regulatory investigation or fines
- Legislative action
How Does Cyber Insurance Work?
- Step 1: Application
- Requires an approved third-party assessment or security audit
- Define scope of coverage
- Must consider regulatory concerns
- Step 2: Risk Assessment
- 87% of organizations consider the number & type of internal IT vulnerabilities
- 50% consider probability of effectiveness in controls
- There is more of a focus on technical details during risk assessments instead of remediation or liability
Currently, 41% of businesses are insured with markets witnessing a steady increase. Many companies that forego insurance do so as a result of the issues with the current market.
The Problem with Current Cyber Insurance
- 70% of policies are written by the same insurers, with the same issues.
- Insurance policies frequently only cover first-party risk
- Security assessments are impeded on multiple fronts.
- Lack of historical data
- Long turnaround times — 1-4 weeks
- Requires constant updates
- Lack of predictive ability
- Lack of knowledge about how much coverage company’s actually need
These result in higher claims as insurers brace for impact.
- Cyber claims are astronomically high, at an average of $3.2 million
- Insurers struggle to accurately assess risk — many operate at a loss of greater than 50%
- The top 10 insurers lost a combined $1.3 billion in 2020.
The Solution
To see success and drive growth, insurance companies need powerful tools to:
- Deploy thorough risk assessments appropriate to every industry
- Assess both first-party and third-party risk
- Analyze information and measure results to fully understand their clients risk value
- Empower and educate clients to implement basic and advanced security controls
- Consistently monitor progress
- Provide clients with clear remediation steps to actively close gaps in their security posture
- Gain insight into trends via external threat intelligence and by tracking data
All of these powerful tools and more can be activated with Centraleyes’ automated Risk Management platform to achieve more control, reduced risk, and greater results.
Centraleyes: Cyber Risk Assessments Reimagined
A cloud-based platform, Centraleyes addresses the major pain points of cyber insurance making it easy for insurance agencies to create optimized cyber insurance policies and cyber advisory services.
- Streamlined, centralized risk assessments
- Automated risk register
- Industry-specific tools and features
- Real-time monitoring and threat intelligence
- Smart mapping to compliance frameworks and standards
Instead of allowing cyberattacks to determine the profitability of your insurance company, manage both client and company risk with Centraleyes.
Start Getting Value With
Centraleyes for Free
See for yourself how the Centraleyes platform exceeds anything an old GRC
system does and eliminates the need for manual processes and spreadsheets
to give you immediate value and run a full risk assessment in less than 30 days
