Cyber insurance for the enterprise

Cyber insurance for the enterprise

The growing threat of ransomware and other cyberattacks is top of mind for IT and Security leaders.

In a 2023 global survey of over 3,400 IT and SecOps decision-makers , 93% said the threat of ransomware attacks to their industry had increased this year. Even more alarming, 45% said their organization had been the victim of a ransomware attack in the prior six months.

In a separate report by ESG , more than half of organizations said they paid a ransom to regain access to data, applications, or systems. Plus, the average ransom payment in 2023 is $1.54 million, nearly double the 2022 figure.

Yet even organizations that pay a ransom discover that doing so doesn’t guarantee data recovery.

Equally troubling, attackers have also been known to wipe—or delete—data, so even if payment is made, data is still lost forever.

The ransom payment is just one cost among many. Lost productivity, downtime, and reputational damage following an attack may be far costlier.

So that’s the bad news.

Cyber insurance: a key part of a comprehensive data security strategy

The good news? Organizations are fighting back. They’re turning to modern data security and management solutions that increase their data, cyber, and business resilience.

And they’re getting cyber insurance.

Cyber insurance is an insurance policy that provides financial protection against losses resulting from cyberattacks, data breaches, and other cyber-related incidents. It may cover lost income, legal fees, data recovery fees, and the cost of hiring a public relations firm to help control damage to your company's brand.

While cyber insurance doesn’t solve the ransomware crisis, it’s showing up more as part of a multilayered resilience strategy—especially as attacks and other cyber threats remain alarmingly frequent and severe.

Cyber insurance is harder to get

With the average total cost of recovery from a ransomware attack approximately $4 million, it’s no wonder that organizations have trouble securing cyber insurance.

Recent survey results from Delinea reveal that the number of companies taking more than six months to qualify for cyber insurance increased 21x from 2022 to 2023. (The top reason smaller organizations had their claims voided or denied? A lack of security protocols in place.)

Our 2023 State of Data Security and Management Report echoes these challenges.

We make it easier to qualify

Buying cyber insurance isn’t like buying auto insurance, or any other insurance type. Applicants must meet numerous requirements—around internal security, people training, email security, and data protection policies, among others.

Organizations generally need robust internal security controls and a modern backup and recovery solution in place to meet today’s more stringent requirements.

Would your current data backup and recovery solution meet the necessary criteria?

Check out this ebook to see how our customers have:

  • More easily qualified for cyber insurance
  • Successfully lowered their cyber insurance premiums
  • Implemented strategies to help strengthen their resilience

obtaining cyber insurance can be a complex process, requiring organizations to meet stringent security requirements.

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Mohammad Hasan Hashemi

Entrepreneurial Leader & Cybersecurity Strategist

9 个月

This article highlights the critical importance of cyber insurance in today's landscape of escalating cyber threats. With the prevalence of ransomware attacks on the rise, organizations face significant financial risks in the event of a data breach or cyber incident.

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