14 DAY TRIAL // A study released last week by Experian Data Breach Resolution and the Ponemon Institute shows that companies are beginning to understand the threats posed by cyberattacks.
However, while 76% of organizations see cyber security risks as a greater threat than natural disasters, fires and business interruption, only 31% of companies have cyber insurance.
On the positive side, the number of companies that have cyber insurance is growing. In fact, 39% of the firms that have taken part in the survey say they plan on purchasing a policy.
As expected, organizations that have already suffered a data breach are more likely to be looking for cyber insurance.
Most companies view this type of insurance as being complementary to their technical cyber security incident protection solutions.
Cyber security insurance has another advantage to it. 62% of respondents said they improved their cyber security readiness and preparedness while evaluating their insurance policies.
30% of the companies already insured have submitted a claim after being breached and most of them are happy with how the insurance provider responded.
On the other hand, not everyone is certain that this is a good decision. 30% of the respondents say they don’t plan on purchasing cyber insurance mainly because of costs and policy conditions.
“We are reaching a tipping point where the majority of companies we surveyed now rank cyber security risks as high as other major insurable business risks,” said Michael Bruemmer, vice president at Experian Data Breach Resolution.
“We anticipate that demand for cyber security insurance is likely to increase in response to evolving breach response policies.”
Dr. Larry Ponemon, chairman and founder of the Ponemon Institute, commented, “Companies worry about the financial impact following a data breach. Cyber insurance could be an important part of a risk management strategy to protect against potentially severe financial losses.”
The complete report, “Managing Cyber Security as a Business Risk: Cyber Insurance in the Digital Age,” is available here (registration required).