2020 changed the course of cybersecurity and the way we look at cyber insurance. Increased online interactions in both personal and business facets have highlighted possible points of attack on data which can lead to significant loss and security threats.
1. Increased scrutiny on claims and security in phone apps and software
There will be a greater emphasis on explicit details about cybersecurity measures such as employee online security awareness training, dark web monitoring, and verified back-ups (or how a provider stores and secures backup data).
Businesses can also expect cyber insurance providers to conduct network scans to see and experience how secure an app or software appears. Having these basic security measures in place will help cyber insurance providers determine the cost of premiums for a business.
2. Some industries may have a harder time finding insurance cover
Some of these industries are:
– SMBs with a high record count (e.g. medium-scale medical practices)
– Companies that move large amounts of money like manufacturers
– Organizations with historically poor security (e.g. local government units)
This does not mean cybersecurity will be completely inaccessible to these types of industries. It does imply that these groups will have to pay more or will need more effort to find a cover for them.
3. Specific features may be amended or taken out
Many cybersecurity insurers are making changes to help cover areas that may be more prone to risks or they may recommend add-ons for new security requirements.
Check the value of ransomware payments if it matches your business’ needs. Policy limits may be lowered so double-checking this feature is a must.
4. Higher premiums are inevitable but will be a NEED
The end of finding the cheapest cyber insurance came early this year when there was a global shift in how businesses should be looking at cybersecurity and the huge impact of hacking. Acting too late this 2021 will result in higher premiums in the future.
Most companies only think about cyber insurance after falling victim to an attack. Remember that your history as a business plays a significant factor in how much your premium will cost in the end.
Of course, there will still be good deals, especially from the venture capital side.
5. Validation of increased expenses in cybersecurity
This means is companies will have to really look at their liability insurance policies and include cyber insurance as an essential. Zero dollar deductible policies or cheap policies won’t cut it anymore.
Increased budget for the IT department will certainly become a trend with an emphasis on tools for better security measures as well as company training for online safety awareness.
This increased expense is a positive change for both business and consumer in the long run.
We will continue to see more shifts in the cybersecurity and cyber insurance space now that businesses have seriously considered pivoting to hybrid work set-ups. Stay tuned to see our analyses.
Need help finding cybersecurity insurance for your business in Hong Kong? Get in touch with us today.