Cyber Insurance
Many small to medium-sized enterprises (SMEs), if they have yet to experience the changes in cyber insurance, are in for a surprise. Whether you seek insurance for the first time or renew an existing policy, there will be changes. Cyber insurance concerns are growing. It’s a maturing of the new cyber insurance market and a course correction to curb significant direct loss rates. “The price bumps helped the U.S. cyber insurance industry pare back its direct loss ratio, or the percentage of its income that it pays out to claimants, to 65.4% in 2021 from a record of 72.5% in 2020”, as reported in the Wall Street Journal. The reason behind these increases is the rise in cyberattacks, specifically ransomware, phishing, and social engineering attacks. In addition, pandemic and hybrid work arrangements brought swift changes and challenges to business and data security.
