The cyber insurance market is changing: for the first time in its 15+ year history, the market is hardening and policyholder conditions are becoming increasingly difficult.
Many companies already have cyber insurance coverage. However, it is often difficult to renew policies because capacities are falling and premiums are skyrocketing. Strong cybersecurity supports companies in several ways when it comes to cyber insurance: simplified approval processes, lower premiums and a lower probability of claims.
Cyber insurance – also known as data protection, cyber risk or hacker insurance – protects you against the effects of cyber attacks (but not against the attacks themselves). In general, cyber insurance offers you three key benefits:
1. Financial Protection. The insurer bears any financial losses arising from cybersecurity incidents
2. Operational Support. In the event of incidents, external experts (IT forensic analysts, data protection lawyers and PR experts) provide your company with immediate assistance
3. Crisis Preparedness. Cyber insurance increases the confidence of your customers, partners, suppliers and employees in your company because you are prepared and protected against cybersecurity incidents
Cyber insurance covers costs incurred as a result of cyber attacks. The contents of a cyber insurance vary depending on the provider.
It is worth getting an overview of the current situation in the cyber insurance market.