CyberEconomicNews Briefs

Cyberattacks are increasing, and so is cyber insurance

“‘Cyber insurance is a growth market for the industry today,’ said Sasha Romanosky, an expert at the RAND Corporation, a private research organization. He estimated that the current market size is around $2 billion in the United States, which may seem like a small size for an industry worth an estimated $350 billion. Still, the cyber insurance market is expected to become a $10 to $15 billion sector in the next decade, according to Romanosky. Roughly 30 percent of companies currently have some form of cyber insurance, Romanosky said, and that number is expected to grow. Everything from extortion expenses to clean up to breach notification can be included in policies. Major insurance carriers also offer cyber policies for public sector bodies like governments, schools and utilities. Romanosky said that a company is evaluated for their risk of being hacked when they receive cyber insurance, just like car or health protection. Customers have demanded a streamlined process to be evaluated for cyber risk, and as a result the industry has tried to move away from a tradition of onerous questionnaires.”

Source: Cyberattacks are increasing, and so is cyber insurance

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