The Rise of Cyber Insurance Claims

The Rise of Cyber Insurance Claims: What You Need to Know

The digital age has given rise to unprecedented connectivity and interdependence, but with it comes the increased risk of cyber attacks. As these attacks become more sophisticated and frequent, businesses turn to cyber insurance protection. But are we seeing more cyber insurance claims?

In this article, we'll explore this question and the trends in the legal industry with the hiring of Partner levels to set up Cyber & Privacy divisions. We'll also look at how US law firms are entering the UK and European markets and the implications of AI disputes in our world.

cyber-attacks

As cyber-attacks continue to make headlines, companies have become increasingly aware of the need for cyber insurance. In fact, according to a recent report by cybersecurity firm Carbon Black, 75% of companies now have cyber insurance. But as more companies turn to cyber insurance, are we seeing more claims being made? The answer is yes. A recent Allianz Global Corporate & Specialty report found that reported cyber claims increased by 27% from 2018 to 2019. This is due to various factors, including the increased frequency and sophistication of cyber attacks.

With the rise of cyber insurance claims, law firms are taking notice. Many are now making Partner hires to set up Cyber & Privacy divisions, which focus on advising clients on data protection and cybersecurity issues.

This trend has been particularly prevalent in the UK and Europe, where data privacy regulations such as GDPR have made companies more aware of the importance of protecting personal data. By hiring Partners with expertise in this area, law firms can provide more comprehensive services to clients and stay ahead of the competition.

It's not just UK and European law firms that are taking notice of the rise of cyber insurance claims. US law firms are also entering the market and looking to expand their offerings to clients in this area.

This is not surprising, given that the US is home to many of the world's largest technology firms and has been at the forefront of cybersecurity legislation. As more companies look to protect themselves against cyber attacks, US law firms are positioning themselves to take advantage of this growing market.

As the use of artificial intelligence (AI) becomes more prevalent, there are concerns about the potential for disputes and litigation to arise. For example, what happens if an AI system is hacked and causes damage to a company's network?

Who is liable for any losses incurred as a result? These are complex legal questions that require expertise in both cybersecurity and AI. Given the potential for AI disputes to change the world we live in, it's vital for companies to seek out legal counsel with expertise in both areas.

The rise of cyber insurance claims is a trend that is here to stay. As cyber-attacks become more frequent and sophisticated, companies will continue seeking protection through cyber insurance. Law firms are making Partner hires to set up Cyber & Privacy divisions to meet this growing demand and expand their offerings to clients in this area.

As US law firms enter the UK and European markets, competition will increase, leading to more innovative services being offered to clients.

Finally, with the potential for AI disputes to change our world, it's crucial for companies to seek out legal counsel with expertise in cybersecurity and AI.

If you're a company seeking expertise or a legal professional looking to make a strategic move in cyber insurance, don't hesitate to reach out. Visit Iceberg Cyber Security, for more information and to start a conversation today.