2023 Cyber Insurance Trends: Safeguarding Your Business

Cyberattacks continue to occur frequently across various industries. In fact, nearly 1 in 4 (24%) IT professionals reported that their organization fell victim to a ransomware attack in 2022, according to a report by cloud email security provider Hornetsecurity. This increase in cybercrime has led to a hardening of the cyber insurance market. As the cost of dealing with these occurrences increases, it drives insurance costs up.

Global cyber insurance pricing rose 53% in Q3 of 2022, according to insurance broking and risk management company Marsh. While prices seem to be rising at a slower rate than in previous quarters, the overall market hardening could persist into 2023 as cyberthreats and related costs continue to evolve. As such, organizations should stay informed of market developments that may affect cyber insurance premiums or policy terms. It is important for companies to be proactive in understanding the current market conditions and how it may affect their cyber insurance coverage. This will help them make informed decisions to protect their business from potential cyber threats and minimize the financial impact of a cyber attack.

Trends to Watch

IoT vulnerabilities
IoT devices like smart devices and voice assistants are becoming more common, but many of them have weak security. This makes them easy for hackers to attack. To protect themselves, companies should make sure their employees use strong, unique passwords and regularly update the software on their IoT devices.

Opportunist attacks
Scammers may try to take advantage of people’s fears about economic problems, like inflation, to steal money or personal information. For example, researchers at cybersecurity company Kaspersky found fake websites that looked like they were from the Canadian government and offered anti-inflation benefits. As economic problems continue, these types of scams may become more common. Also, political conflicts like the Russia’s invasion of Ukraine can make the risk of cyberwarfare higher.

The growth of artificial intelligence (AI)
AI technology can help companies detect and respond to cyberattacks more quickly by analyzing data in real time and recognizing patterns. However, it’s important for companies to stay up to date on the latest attack methods and trends so the AI can respond properly.

Cloud vulnerability
Even though cloud services like Google and Microsoft have security features, employees can still make mistakes or fall for phishing scams that lead to data leaks. To protect against this, companies should train their employees to recognize phishing attempts and regularly check and update their security measures.

Cyber Insurance best practices

• Employees are commonly targeted during cyberattacks making them your first line of defence. As such, consider ways to make cybersecurity an integral part of company culture. Additionally, focus on employee training to prevent cybercrime from affecting your operations.
• Utilize security services offered by insurance carriers and third-party vendors to strengthen your cybersecurity measures. These should include implementing multi-factor authentication and keeping devices and software up to date.
• Work with your insurance professionals to understand the types of cyber insurance available and secure a policy that fits your needs. Additionally, discuss cyber-risk mitigation efforts that may help you reduce your organization’s exposure to cybercrime

In conclusion, the threat of cyberattacks continues to be a major concern for organizations in 2023. As the number of cybercrime incidents increases, the cost of cyber insurance is also rising. To protect their businesses from potential cyber threats and minimize the financial impact of a cyber attack, companies should stay informed of market developments and be proactive in understanding the current market conditions. Additionally, organizations should focus on employee training to prevent cybercrime, implement security services offered by insurance carriers and third-party vendors, and work with insurance professionals to secure a policy that fits their needs. By taking these steps, companies can better protect themselves from the growing threat of cybercrime.

Did you know that 60% of small and medium businesses don’t survive after a cyber attack. Protect your business with Cyber Insurance, call us at 780.424.2727 or click here to get a quote.