During the height of the pandemic, a large proportion of the workforce did their jobs from home. This created a more fertile environment for cybercriminals to perpetrate ransomware attacks against companies. The number of ransomware attacks skyrocketed.
This in turn led to precipitous price increases for cyber insurance as carriers struggled to keep pace with the big surge in claims. For example, cyber insurance prices rose more than 100 percent for the first quarter of 2022.
But as the pandemic receded, and people began returning to the office, the cyber insurance market began to stabilize as well. Price increases also dropped significantly. Companies are now better able to afford coverage.
Although the number of cyberattacks has substantially diminished, they are still a significant risk. But insurers and their clients have been working together in a number of ways to fortify their defenses against such attacks. Here are a few.
Better Data and Analytics
The industry now has access to better data and analytics, which has improved underwriting and pricing. As more companies purchase cyber insurance policies, insurers have more data to analyze, allowing them to better understand the risks associated with different industries and types of businesses. This has led to more accurate pricing and reduced the uncertainty that previously existed.
Improved Risk Management
Insurers are now requiring policyholders to implement stronger cybersecurity measures and controls, such as multi-factor authentication and employee training. These measures reduce the likelihood of a cyber incident and, as a result, reduce the number of claims. By focusing on risk management, insurers can better control their losses and ensure that they are pricing policies correctly.
Insurers are increasingly collaborating with cybersecurity firms and other industry experts to better understand the risks associated with cyber threats. This collaboration has led to better risk assessment and pricing, as well as the development of new products that address emerging risks such as social engineering attacks.
As businesses continue to face cyber threats, the demand for cyber insurance policies is likely to remain strong, and the industry will continue to evolve to meet the changing needs of policyholders.
Looking for a top insurance recruitment agency?
Insurance Relief is among the best insurance staffing agencies in the business, earning a Best of Staffing award for high approval ratings from workers and client companies. So, if your company is looking for qualified, reliable professionals, find out what Insurance Relief can do for you. Give Insurance Relief a call today.