03 Mar Cybersecurity Insurance Report Q3 2015
Cybersecurity Insurance Report
A SPECIAL REPORT FROM THE EDITORS AT CYBERSECURITY VENTURES
The Cybersecurity Insurance Report provides cyber insurance trends, statistics, best practices, and resources for chief information security officers (CISOs) and IT security staff.
Cyber insurance market grows from $1 billion to $2.5 billion over the past two years.
- According to BITS, the technology policy division of the Financial Services Roundtable, 2014 marked an important milestone in the growth of cyber insurance with a significant jump in both the number of companies offering cyber insurance and the number of firms buying cyber insurance. Demand for that insurance rose by 21 percent across all industries, with financial institutions representing the biggest increase of 29 percent in coverage buying.
- Inga Beale, CEO at Lloyd’s, recently told Fortune that demand for cyber insurance has grown considerably in recent years. Last year, the insurance industry took in $2.5 billion in premiums on policies to protect companies from losses resulting from hacks. That was up from around $2 billion a year before, and less than $1 billion two years before that.
- PwC says adoption of cyber insurance as a tool to help manage security risks continues to rise. More than half (51 percent) of respondents say they have purchased cybersecurity insurance, according to the “PwC 2015 Global State of Information Security Survey”. And among those that have done so, many are taking steps to enhance their security posture in order to lower their insurance premium.
- Fortune recently reported that about 90 percent of cyber insurance is being purchased by U.S. firms, leaving other companies around the world exposed.
- Forrester Research recently predicted “$100 million cyber-insurance policies will become the norm.”
- “Cyber insurance policies are offered by more than 70 carriers according to a Gartner Research report, and include liability coverage for exposing confidential information, paying to notify customers of a breach and providing them with credit-monitoring services”, stated Lou Shipley, CEO at Black Duck Software, which helps companies securely manage open-source software, in a recent article he wrote for The Wall Street Journal. Shipley advises that small businesses should consider buying cyber insurance to help fend off hackers, given that percent of cyberattacks hit companies with fewer than 100 employees. At present, most cyber insurance buyers are large corporations.
Steven C. Morgan, Editor-In-Chief
- is Founder and CEO at Cybersecurity Ventures, and Editor-In-Chief of the Cybersecurity Market Report and the Cybersecurity 500 list of the world’s hottest and most innovative cybersecurity companies. Steve writes the weekly Cybersecurity Business Report for IDG’s CSO, and he is a contributing writer for several business, technology, and cybersecurity media properties.
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