Global Cybersecurity Insurance Premiums Skyrocket

The insurance industry has got the cybersecurity-jitters, and as a result they are increasing premiums to cushion themselves from new threats and giant payouts.

Cybersecurity insurance premiums are up around a third year on year from 2021, due to a ‘perfect storm’ consisting of; a surge in ransomware attacks, new regulations and payouts on a scale the industry seemed underprepared for.

According to a new report; Cyber Insurance: A Hard Reset, Ransomware is now the number one cybersecurity threat to businesses of all sizes. With the average cost of ransomware per attack also skyrocketing.

The cost to businesses is now an increase in premiums of 32% at cybersecurity insurance broker Howden, who compiled and published the report.

“With major cyber (re)insurers increasing their loss picks in response to higher claims inflation, clients can expect pricing to continue to rise through 2021 and potentially into 2022,”

Howden Insurance 

What can be done to reduce premiums or even secure cyber insurance?

A key finding of the Howden report is that all cyber insurers are now requiring security hardening measures and higher basic standards for all businesses applying for cyber insurance. Much like getting the most secure locks for your house when getting home insurance – ensuring you have strong cybersecurity is now a requirement to achieving reduced risk and therefore reasonable premiums.

The report highlights the fact that many underwriters are removing cybersecurity insurance from their product offerings and where they do offer insurance, they are mitigating risk with terms such as coinsurance – where the client pays not only an excess to make a claim – but also agrees to pay a certain percentage of the cost themselves.

With premiums set to rise again in 2023, now is the time to harden your cybersecurity infrastructure and review your current setup to vulnerabilities and areas for improvement.

To book a cybersecurity assessment with one of Trustco’s experts – visit our Security Operations as a Service page for more information.