Navigating the Cyber Insurance Landscape with Cyber Security

Navigating the Cyber Insurance Landscape with Cyber Security

Most business owners who are familiar with cyber insurance would recognize it to be a simple add-on that is offered towards the end of a conversation with an agent and a simple five-step questionnaire would be all that is required to attach the coverage to your business or commercial policy.?

If you have not heard the news yet, we sadly are here to inform you that those days are long gone. Not only does cyber insurance have more stringent underwriting processes but your business will now be required to uphold several minimum cybersecurity controls or measures to ensure you have a minimum amount of protection to qualify for cyber insurance.?

Why…

As mentioned before this may be news to some but if you have been a victim of cybercrime or know of someone who has had the unfortunate outcome you understand that this has been a long time coming. While it may seem unlikely, small business owners are the most common victims of cybercrime. Systemically the consensus would think otherwise, cybercriminals understand this. Just as the days of self-attesting for cyber insurance are in the past, so are the days of simple anti-virus software to protect your businesses.?

So much so that businesses like Custom Information Services have invested vast amounts of time and money in becoming experts in protecting small businesses from these crimes. The reality and facts are that one attack can wipe out a small business and most businesses are not prepared to defend themselves.?

It is our belief that we must protect our trading partners and our business community as a whole. Business continuity is the number one goal for the economic well-being of our companies and employees and cybersecurity is a duty for all businesses. American small businesses are inundated by cybercrime attempts every day. We must protect our business, our way of living, and ourselves from this invasion.?

The Landscape?

In most insurance markets, the insurers have hundreds of years of data on losses which provides accurate evidence on which to base premiums for individual cases. But there are no such actuarial tables for cyber loss. These tables are years in the making but the data is ever-changing.?

The Risk is Unpredictable!

With no history to help, the insurance industry cannot be proactive in setting accurate premiums. It is forced to be reactive – and it is reacting to increased claims by setting higher premiums and insurance conditions.

• Reduced coverage
• Reduction in overall benefits while having insufficient security?
• Some insurers are applying co-insurance provisions, forcing the insured to share more of the risk
• AIG CEO "We continue to carefully reduce cyber limits and are obtaining tighter terms and conditions to address increasing cyber loss trends, the rising threat associated with ransomware, and the systemic nature of cyber risk generally,"
• Increased rates
• Pricing for cyber insurance is increasing 6 Factors Causing Cyber Insurance Rates to Increase | Travelers Insurance
• Cyber Insurance: Top Five Trends for 2022 | ACA Group (acaglobal.com)

Risk

Stringent Underwriting

• No longer just self-attestation must show proof
• Insurers are hiring a security professional for pre-policy risk assessment
• Underwriting Process Changes
• Harder / longer to get a policy written
• A more thorough process is involved, much more than a simple questionnaire

• The insurance industry is growing
• Easier for insurers to get external quantifiable risk data
• However so is cybercrime, must always be on your toes, cybersecurity measures must be a priority

Top Cybersecurity Controls

The key to insurability, mitigation, and resilience.

Preparation for the underwriting process:

1. Start early! Without positive responses in the top 9 controls categories, coverage offered and insurability may be in question.

2. Expect more rigorous underwriting and more detailed questions from underwriters.?

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Cybersecurity Planning Session

Brian Chavis, Chief IT Strategist

703-728-8472

[email protected]

www.customis.com

Our culture is what sets us apart and it is a culture of cyber security.?Custom Information Services?has been serving the community as a technology leader for over 30 years. Just as cybercriminals have been increasing their capabilities we have been highly committed to intelligent, strategic, and business-focused cybersecurity solutions. Protecting and defending your most valuable business assets is what we do best.

The MSP Overwatch? Badge and being recognized as a TISC-2020 Certified, Trusted Provider for managed IT services is a perfect example of our extraordinary commitment to cybersecurity best practices.

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Read more about our award and our commitment to excellent customer service:?https://lnkd.in/gKuAcuk5