Every week, there seems to be a major new data breach that impacts millions. So it’s no surprise that personal cyber insurance are being offered by insurance companies, and the global market could be worth as much as $3.1 billion by the year 2025.
Given the growing prevalence of data breaches, evidence is building that many cyber insurance policies might be close to worthless, as insurance companies look for any excuse possible to avoid paying out the full amount of a claim.
In what is shaping up to be a major test case for the entire cyber insurance industry, Zurich Insurance is refusing to pay out a $100 million claim from Mondelez, saying that the ransomware attack was actually an act of “cyber war,” and therefore, is not covered by the policy.
AIG releases new cyber risk benchmarking model to quantify and score cyber maturity of clients, boosting cyber insurance and promoting metrics useful for the industry to evaluate the risks that organizations face in terms of cyber security.
The private sector is increasingly turning to cyber insurance to at least mitigate some of the effects of hacking, however governments across the globe seem to have been slow to take advantage. Given the severity of the cyber threats, is it time for public sector agencies to leverage cyber insurance offerings?
If your business is dealing with data then ignoring the peace of mind that cyber liability insurance would provide would be foolhardy. In fact, the very survival of a business that stores and leverages customer data in any way may very well depend on good cyber liability coverage.