ABI predicts that the cyber insurance market will become more common in the coming decade
Cyber insurance coverage may become the new normal in 10 years’ time. The Association of British Insurers (ABI) has claimed that cyber insurance products will become significantly more common in the United Kingdom and elsewhere by 2025. In early March, a report from Marsh and the UK government showed that only 2% of large businesses in the UK have cyber coverage. This may be a costly problem for these businesses as they face significant risks in the digital world.
Demand for cyber protection is on the rise
Last month, Lloyd’s of London noted that there has been a 50% increase in the demand for cyber insurance coverage this year. According to ABI, this demand is expected to continue growing quickly as more businesses become aware of the risks that exist in the digital world. Businesses are becoming increasingly concerned about these risks and how they may be impacted by them. Cyber insurance protection can help mitigate financial losses that businesses face from digital attacks.
Cyber attacks continue to become more common
According to ABI, approximately 80% of large businesses have suffered some form of cyber security breach in the past 12 months. Only 10% of these companies have had cyber insurance coverage. The impact of cyber attacks can vary, but data breaches can cost a business millions in damages and could threaten the viability of that business in the future. Cyber protection can be an effective way to offset the damage caused by a data breach, helping companies recover from significant losses and ensure their sustainability into the future.
Executives may not be aware of cyber protection
Executives at large companies may be concerned with the potential losses they face by being exposed to risks in the digital world, but they may not be comfortable with the concept of cyber security. As such, large businesses may be relying too heavily on outdated security solutions, which could leave them more exposed than is necessary. Becoming more aware of cyber insurance could be a boon for these companies and help them protect themselves from data breaches.