Cyber insurance still not being used by most North American companies

cyber insurance

Cyber Risk Insurance

Businesses still don’t seem to be protecting themselves against the risk of attack.

The results of a new risk survey conducted by Chubb Insurance have been released, and they are showing that over 70 percent of North American businesses have created an incident response plan in order to deal with a security breach, and yet among them, 57 percent have not made cyber insurance an element.

Liability coverage against online attacks is considered to be a vital part of this form of response plan.

At the same time, the respondents in the survey stated that digital attack risks are the leading concern that their companies face. In fact, over half – 52 percent – indicated that they would be using additional resources for the specific purpose of mitigating data breach risks. Approximately one in four of the companies that participated in the research stated that they anticipated at least one occurrence of some form of data breach within the coming year.

And yet this acknowledgement doesn’t align with the amount of cyber insurance that has been purchased.

On the public side of the spectrum, 65 percent of the companies that participated in the survey had not purchased cyber insurance. Among those respondents, 63 percent of the decision makers had indicated that they felt some concern about the risk of exposure that their companies had to a data breach.

These results were an element of the wider research performed by Chubb, called the “2012 Public Company Risk Survey. Among its respondents were 145 public companies from the United States and Canada. This data was released as a portion of a larger infographic that was prepared by that firm.

Within the report, Chubb pointed out that two out of every five organizations have experienced a significant data breach security issue within a recent twelve month span. This information was based on data from the computer Security Institute. The average form of data breach will currently generate $5.5 million in costs for the victim organization. Cyber insurance is a form of coverage that is designed to assist in protecting a company against those costs and to offer additional assistance throughout the recovery process.

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