Cybersecurity Insurance: Changes on the Horizon
The cyber insurance market is rapidly involving. Though always in flux, unique reasons make 2023 a critical time to shore up your InfoSec posture, prepare for due diligence, and finalize an insurance policy.
What is it? It may seem strange, but cyber insurers are often insured themselves. They buy insurance policies to diffuse the financial impact of large claims in a reinsurance market. Activity in cyber reinsurance has exploded since 2019 to keep rates low in the face of rising claims, but is only a fast-depleting stopgap.
Why does it matter? The bubble may burst. Without sufficient reinsurers, liquidity risks drying up. A capacity crunch could double rates as soon as next year.
What is it? 2023 will see a raft of new regulations in several areas. The scale and scope of change in privacy regulations will be unprecedented. Within the next two years, 75% of the world will have its data covered by modern regulations. In addition, the number of countries regulating ransomware payments will increase from less than 1% in 2021 to 30% by 2025.
Why does it matter? Change drives up premiums, as insurers’ expenses increase from “compliance coverage.”
What is it? Catastrophic threats are increasing day-by-day. Incidents like Colonial Pipeline, SolarWinds, and Marriott make insurer liability clear. Work from Home (WFH) vulnerabilities and threats from Russia post-Ukraine will make 2023 a banner year for cybercrime.
Why does it matter? With each major attack, the insurance industry is forced to reassess its risk exposure. A unpredictable incident could cause a sudden, irreversible change in rates.
Feeling overwhelmed? Don’t be. VENZA is here to help. Cybersecurity is complex, but in partnership with us, your company can futureproof and get started on “staying over the horizon” in as little as one month. Get a live demonstration today by contacting our Customer Success Team.
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