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Cyber insurance is changing -- now is the time to review your coverage and processes

The landscape of standalone cyber policies is changing, and companies must review their existing or proposed cyber coverages carefully.

By Walter Andrews, Andrea DeField and Sima Kazmir | January 19, 2022 at 08:05 AM
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Companies should expect that regulators and agencies will be more active role following a cyberattack. Fortunately, despite reductions in coverage, insurance can help mitigate costs arising out of a cyberattack, as well as defense costs incurred for claims from a cyber incident. (Credit: Shutterstock.com) Companies should expect that regulators and agencies will be more active role following a cyberattack. Fortunately, despite reductions in coverage, insurance can help mitigate costs arising out of a cyberattack, as well as defense costs incurred for claims from a cyber incident. (Credit: Shutterstock.com)

By June 2021, the total value of suspicious activity associated with ransomware transactions for the year exceeded the total value reported during the entirety of 2020, according to the U.S. Treasury Department.

Though standalone cyber insurance policies are new in the industry, they have grown in the last decade to account for increased risks and corresponding insurer and regulatory scrutiny. According to a December 2020 National Association of Insurance Commissioner’s Report, premiums in cyber policies totaled $3.15 billion, doubling since 2015, and demand for standalone policies increased 24%.

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