By Kris Tanaka
SecureWorld Media
In 2015, companies were four times more likely to buy insurance on physical assets than cyber insurance, according to a study by the Ponemon Institute.
These were surprising statistics since at that time, 80% of companies were likely to suffer a data breach within a 12-month period. However, fewer than one in five respondents said their companies had cyber insurance coverage, even though over half said they expect their exposure to cyber risk will grow over the next two years.
By the way, they were right - cyber risks are growing. In fact, they are exploding. And so is the the cybersecurity insurance market.
According to a 2015 report from PwC, the global cybersecurity market is projected to hit $7.5 billion in annual sales by 2020, up from $2.5 billion in 2015. But since the cybersecurity insurance industry is relatively new, both insurers and businesses are still trying to find their way when it comes to dealing with cyber insurance.
Insurers are struggling with how to determine best practices and how to appropriately price policies.
Businesses are unfamiliar with product choices, therefore they do not know how much coverage they actually need. "A challenge for many businesses is the fact that there's no one-size-fits-all recommendation for buying cybersecurity insurance," David Burg, global and U.S. cybersecurity leader at PwC, told CIO Dive.
So what should companies do?
In her upcoming presentation, "Cyber Insurance: Is It Worth It and Is It Required?" at SecureWorld Boston, Sandy Bacik will introduce cyber insurance from a corporate perspective.
Should you get cyber insurance? Does it cover everything?
In order to answer these questions, Bacik, global risk assessment manager for VF Corporation, said "You first need to understand why you are getting cyber insurance and what value add it will give the organization."
Will there come a time when we might need "personal cyber insurance?" Bacik said it is a good possibility. "In today's world of lawsuits, specialists will need to protect themselves now and in the future," she said.
Make sure you have all the information before you make your cyber insurance plans. Don't miss Bacik's session at SecureWorld Boston on March 29-30. In addition, she encourages all attendees to make the most of this great networking opportunity. "This is your chance to meet others who have the same questions or have been where you are today," she said.