Cyber insurance is in demand, but most of them hardly want to cover the risks anymore: almost 80 percent of the companies that have taken out cyber insurance have already made claims with their insurer, more than half of them more than once.
This is the result of a survey* by Delinea, the specialist in privileged access management (PAM) solutions for seamless security. As a result, insurance companies are increasingly withdrawing from covering critical risks. For example, damage caused by ransomware or costs for data recovery are no longer covered by the policy of around 50 percent of the companies surveyed.
The survey of almost 300 IT decision-makers reveals that cyber policies to protect against IT risks are becoming increasingly popular. Almost 70 percent of the companies surveyed said they had applied for cyber insurance, with 93 percent having their application approved, mostly within three months.
Even high cyber policies are within budget
For 40 percent of IT managers, the decisive factor in their decision to purchase cyber insurance was the desire for general risk reduction, and 25 percent specifically named the most recent ransomware incidents as the main reason. A third of those surveyed (33%) said they had taken out insurance at the behest of management or the board of directors. Given this pressure from above, it's also no surprise that 93 percent of IT professionals have received the necessary budget to complete their cyber policies, even though premiums have increased in 75 percent of cases since the last renewal.
“Management and boards see cyber insurance as a great way to reduce costs associated with potential security breaches. As a result, the vast majority of businesses are now scrambling to buy or renew a policy - even as insurers are scaling back coverage while raising prices," said Art Gilliland, CEO of Delinea. “However, our report also reveals that insurers are increasingly requiring companies to implement a broader range of security controls in order to reduce the number of customers filing claims. At the same time, the fact that 80 percent of the companies that have been doing this recently shows that there is an urgent need for more advanced solutions.”
Common cybersecurity controls are a requirement for insurance
When asked about the requirements their company had to meet in order to purchase cyber insurance, 51 percent of respondents named conducting cyber security training and 47 percent implementing anti-malware, anti-virus software, multi-factor authentication (MFA) and data backup. When asked how they meet or have met the requirements of insurers for privileged access management, 43 percent stated that they already had suitable solutions in use, but almost as many (42%) had to upgrade when it came to PAM. "Privileged access management solutions not only make a sustainable contribution to limiting the threat to companies from risks such as ransomware, but also reduce the potential damage if they are part of cyber insurance," continues Gilliland.
More at Delinea.com
About Delinea Delinea is a leading provider of Privileged Access Management (PAM) solutions that enable seamless security for modern, hybrid businesses. Our solutions enable organizations to secure critical data, devices, code and cloud infrastructure to reduce risk, ensure compliance and simplify security. Delinea removes complexity and redefines access for thousands of customers worldwide, including more than half of the Fortune 100 companies. Our customers range from small businesses to the world's largest financial institutions, organizations and critical infrastructure companies.