A new Delinea survey looks at cyber insurance – conditions are not improving as insurers continue to reduce the scope of their coverage. The survey shows that 80% of companies have had to use cyber insurance, and insurers are reducing coverage, resulting in only about 30% of companies saying their policy covers critical risks. Let’s quote Channel Futures.
The survey shows that nearly 70% of organizations have applied for cyber insurance. Of those, 93% were approved when they applied, and 65% claimed the process took less than three months. Risk reduction is the main reason for applying. However, one-third of respondents said it was also due to requirements from executive management and boards of directors. Furthermore, 25% cited recent ransomware incidents as a primary decision driver.
Given the pressure coming from the top, it’s no surprise that 93% received the budget required to purchase their cyber insurance. That’s even as 75% of respondents said premiums increased in their last renewal.
Why do we care?
80% of companies using insurance isn’t a viable model for insurance agencies. Customers will want the product, but prices will continue to rise. Expect the qualifications for getting service to continue to increase too. This is good news for competent providers… and we must acknowledge that it isn’t the whole market.