High profile attacks in 2013 draw more attention to cyber protection
The attack against Target during the 2013 holiday season had dealt a powerful blow to the retailer, but it served as an opportunity for insurance companies that offer protection against such attacks. The attack against Target highlighted the dangers that exist in the digital world and the fact that even large companies have blind spots when it comes to matters of security. Cyber insurance can provide a safety net in the event of such attacks, and the high profile attacks of 2013 have lead to a sharp increase in the interest that businesses have in this type of insurance protection.
Retailers and state agencies report data breach and vulnerabilities
According to Target, hackers stole a massive amount of financial information during a data breach in December 2013. In January, Neiman Marcus Group announced that it too had been targeted by hackers during the 2013 holiday season. The California Department of Motor Vehicles has also been subject to attack, announcing recently that it had begun investigating a potential breach in its payment processing systems. Cyber attacks are not solely focused on the retail sector, of course, and organizations that deal in any kind of sensitive information can be attractive targets for malicious groups.
Public schools are beginning to purchase cyber protection
In February of this year, public schools in Michigan acquired $1 million in cyber insurance coverage from the Zurich Insurance Group. This type of coverage is meant to provide organizations with protection in the event of a data breach. Coverage provides support for the acquisition of new payroll software and human resources training and it can also cover the costs associated with services that are designed to monitor credit accounts for malicious activity.
Businesses may not be adapting quickly enough to digital threats
Cyber insurance is gaining momentum due to the number of high profile attacks that occurred in 2013. Cyber security has long been something that the insurance industry has promoted aggressively, but relatively few businesses are taking the issue seriously. While large organizations, such as Target, do take steps to ensure security, they are not adapting to new threats that emerge in the digital space as quickly as these threats are evolving.
