The Rise of Cyberinsurance

The Rise of Cyberinsurance

24 February 2017

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In the business world, terms like ‘hackers’ and ‘cybersecurity’ are becoming increasingly common. There is a sudden realisation that the protection of data is every bit as important as protecting your bricks and mortar.

With massive multi-nationals such as Yahoo finding themselves falling victim to vicious hacking attacks, is anyone really safe?

This is where the exciting new strand of insurance – cyberinsurance – comes in to play. Companies are now realising that everything on their computers is just as vulnerable as actual, physical property. This, of course, calls for individuals to be able to negotiate coverage for everything online, in the Cloud or on a USB.

An article on Undercover Recruiter reports that 86% of global business and IT professionals believe there is a shortage of cybersecurity professionals. That’s a real call to arms for anyone looking to make their way in to cyberinsurance.

The article continues: “The global shortage has created an immediate risk to corporations and governments, many of whom are vulnerable to hacking because of their inadequate defences. Unsurprisingly, hackers are deliberately targeting organisations who don’t have the cyber professionals to keep them safe.”

There is now a growing demand across all sectors of business and industry to protect what is theirs. That not only means hiring professionals who can forge some sort of front-line resistance to cyber attacks, but a solid level of insurance just in the case the worse should happen.

Undercover Recruiter notes that the banking industry has spent over $1.5 billion to keep customers’ data safe. But it’s not just banks who need to be careful. From recruiters to retailers, anyone who stores sensitive information about individuals or firms will be responsible for ensuring that their insurance coverage also extends to cybersecurity.

The reputation of firms such as Talk Talk has been incredibly tarnished by security breaches and information leaks – the last thing a business wants is to lose the trust of its clients.

Cyberinsurance is set to become a booming industry, with plenty of firms looking to add this type of coverage to their portfolio. It will certainly be an interesting time in the insurance market as more cyber-related roles become available.

The need for data protection is clearly becoming more prevalent and there is no evidence that there are any signs of the market slowing down. More businesses and universities than ever are offering this particular route into insurance.

Whilst the rise of cyber attacks and hacks can seem frightening for companies, it’s reassuring to know that roles will become available as insurance firms look to offer coverage. 

This looks to be a really exciting time in the insurance market in terms of these new opportunities to provide cyberinsurance. 

 

Written By Mary Palmer

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