Cyber insurance seems like a product that should sell itself, between the increased vulnerability of organizations and companies of all sizes to a cyber breach as well as the uptick in potential expenses and losses to arise from today’s cybercrimes.
Consider these 2021 cybersecurity statistics, compiled by cybertalk.org:
- Data breach costs increased from $3.86 million to $4.24 million in 2021, the highest in the past 17 years.
- The average cost of a data breach increased by $1.07 million due to remote work. Because of COVID-19, remote work has increased the average cost of a data breach.
It follows that the cyber insurance market earned roughly $3.2 billion in written premiums in 2021, according to premium reporting collected by the National Association of Insurance Commissioners and analyzed by S&P Global Market Intelligence.
However, every insured’s cyber threat profile is different, however. The U.S. Federal Trade Commission wants cyber insurance prospects to make sure any potential policy covers the following:
- Data breaches (like incidents involving theft of personal information);
- Cyber attacks on your data held by vendors and other third parties;
- Cyber attacks (like breaches of your network);
- Cyber attacks that occur anywhere in the world (not only in the United States);
- Terrorist acts;
- Defend you in a lawsuit or regulatory investigation (look for “duty to defend” wording);
- Provide coverage in excess of any other applicable insurance you have
- Offer a breach hotline that’s available every day of the year at all times
The slideshow above illustrates 2021’s top cyber insurance carriers based on net premiums written.
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.