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Tag: Cyber Insurance
What should SMEs do as they become ‘cyber uninsurable’?
In a digital-first world where all our data, both personal and professional, is stored online, data protection is a crucial aspect that cannot be overlooked. Despite efforts to encourage businesses to prioritise data protection though cyber insurance, many small-to-medium-sized enterprises (SMEs) remain uninsured. Unfortunately, the common misconception that SMEs are not targeted and are safe from threats is far from the truth.
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How much protection does cyber insurance really give businesses?
As the industry adjusts to increasing levels of cybercrime, insurers are increasing premiums and becoming more strict about whom they will insure. However, if organisations don’t meet even the minimum requirements of security and data protection, insurance will do them little good. Instead, it needs to be just one part of the digital resiliency toolbox. Let's look at the bigger picture of cyber insurance, and what businesses need to do to truly have peace of mind.
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Cyber insurance does not offset ransomware risks
Data protection against ransomware and cyberattacks is becoming increasingly critical. According to Veeam’s latest Data Protection Trends Report 2023, 82 per cent of organisations in the APAC region experienced at least one attack in 2022, and 23 per cent experienced four or more. Cyber risks are an unavoidable reality and have necessitated the urgent adoption of new cybersecurity and data protection measures. It is simply not sufficient for organisations to invest in prevention strategies and hope their business does not falter and succumb to an attack. Instead, organisations must be fully prepared for the inevitable: facing a data breach or a security incident.
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Cyber Insurance Can’t Do it Alone: Attention to Fundamental Security Practices Provides the Necessary Protection Against Disasters
On the surface, cyber insurance seems like the perfect solution for dangerous times. Ransomware attacks surged dramatically in 2022, accounting for a quarter of all breaches. So, if your company does get hit, at least you have a way to recoup some of the losses you incur on your bottom line. But for those looking for a quick fix to a growing problem, cyber insurance has its shortcomings. For one, it’s getting prohibitively expensive. The protection it offers doesn’t address the issue of how you got hacked in the first place and how you can stop hackers in the future. And it doesn’t secure your data or keep it available.
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Is cyber insurance a must-have?
The frequency and severity of cyberattacks have dramatically increased in recent years, leaving businesses and individuals vulnerable to financial loss and reputational damage. As technology continues to advance and with the ever-present threat of cyberattacks, this has led to a growing need for cybersecurity insurance.
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