More companies are beginning to embrace cyber insurance in order to guard against digital threats
Cyber insurance is growing quickly in the United States, according to a new survey from the Council of Insurance Agents & Brokers. More companies are beginning to conduct business online, and this comes with significant risks that they may not be prepared to handle on their own. Consumer information is quite valuable, but many businesses have not had to protect digital information in any significant way in the past. As such, companies are beginning to rely on insurance protection in order to mitigate the potential impact cyber attacks may have.
Survey shows cyber protection is most popular among small and medium-sized businesses
The survey from the Council of Insurance Agents & Brokers notes that the average takeup of cyber insurance protection in the U.S. is 24%. All manner of businesses are purchasing cyber insurance policies, but these policies are particularly popular among small and medium-sized companies. These companies tend to purchase coverage in bulk, hoping to adequately mitigate the digital risks they face. For these companies, cyber protection can be quite robust, but larger companies may find shortfalls when it comes to insurance coverage.
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Insurers are working to raise awareness concerning digital threats
For insurers, the survey found that it is still difficult to sell small and medium-sized businesses cyber insurance policies, despite their interest in this form of coverage. Insurance companies are beginning to launch educational efforts in order to increase awareness of cyber security. Insurers are drawing attention to major cyber attacks that have occurred in the United States over the past year, suggesting that these attacks will not disappear, but become more frequent in the future.
Basic cyber insurance protection may not be adequate against larger attacks
Approximately 33% of companies noted that they already had basic cyber insurance protection, according to the survey. This coverage is meant to protect against network and data breaches, but larger attacks may not be covered by their basic policies. Lack of coverage could expose companies to serious financial risks, which they may not be able to handle on their own.