The number of instances of hacks, data breaches, system compromises, ransomware and cyber fraud keeps ballooning and shows no indication of stopping.
As the number of instances of hacks, data breaches, system compromises, ransomware, and cyber fraud keeps ballooning and shows no indication of stopping, the insurance industry is striving to keep pace by offering products that will meet the demand for cyber insurance.
The consumer perspective
In many ways, private individuals can have a much easier time deciding to get cybersecurity insurance than businesses.
For one, many have already personally experienced inconveniences, or have seen someone close to them having problems due to comprised personal data. According to the 2017 Identity Fraud Study from Javelin Strategy & Research, there were over 15 million incidents of identity theft in the US in 2016—and that was before the Equifax breach, which resulted in the compromise of names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers of some 143 million US individuals, i.e. 44% of US consumers!
Martin Hartley, Chief Operating Officer, PURE Group of Insurance Companies, predicts that with the increase of fraud, cyber extortion and ransomware attacks, cybersecurity insurance will become a much more standard part of homeowners’ policies in the coming years, as consumers find themselves liable for resulting costs.
“The risk of consumers’ exposure will continue to increase and similarly, consumers can no longer solely rely on financial institutions, retailers and credit card companies to protect their customers’ data,” he says.
Continue reading “How Consumers, Enterprises and Insurance Providers Tackle Cyber Risk”