Note: This is a recording of a live event.
There were some great questions asked during the live event. We've summarized the takeaways from the panel discussion.
Still have a question? No worries! You can always reach out with your questions here: Ask Team Ascend
What are the trends being seen in terms of changes to the Cyber Insurance market?
The state of volatility in the cyber insurance marketplace is due, in part, to the impacts of COVID on businesses — especially those that adopted remote working rapidly without fully hardening their security to account for those changes. Adding to that, cyberattack methodologies, tools, and vulnerabilities are rapidly evolving. There was a period of several years where cyber liability coverage was cheap and readily available with broad terms, but carriers quickly learned that approach was not sustainable after paying massive losses due to rampant ransomware.
Today, organizations obtaining new or renewed cyber insurance are finding that there are far stricter requirements in order to be considered for a policy and become insured.
The California Consumer Protection Act and New York Shield Act are great examples that are already in place, but more and more states are drafting and adopting similar regulations. Most experts would recommend designing your cyber program with the strictest protections in mind, whether your region has its own framework in place or not, because it will ensure you are well prepared for the future of security and privacy regulations that may affect your business and, subsequently, your insurability.
Industry benchmarking is a great start, but the data gained from benchmarking should only be one point considered when making a decision. Organizations have historically under-bought some limits, while others are now maximizing coverage. Take a look at your liability based on industry, and compare relevant regulatory frameworks to your current cybersecurity lineup to get a good idea of your risk and use that information to help guide policy decisions in terms of amount of coverage, as well as what type.