Insurance against Cyber attacks rising
In today’s world, business email compromise is a growing trend. This type of attack usually involves hackers stealing sensitive information from a targeted company by sending phishing emails.
When business emails are compromised, the hackers often use the company’s branding and writing style to trick their victims.
The rise of remote working has caused a spike in online fraud and cybercrime. The coronavirus pandemic has also created a perfect storm for new infections.
According to Australia’s Cyber Security Centre, one in eight Australians experience cybercrime. The total annual losses due to cybercrime have reached $33 billion.
Due to the increasing number of cyber attacks, businesses are increasingly looking to protect themselves by purchasing professional liability insurance.
The number of businesses with cyber insurance has increased significantly over the past three years. The average premium for cyber insurance has increased by around 50% to 150 percent over the past 12 months.
As the demand for cyber insurance grows, the industry has had to adapt to the changes brought about by the nature of the crime.
For insurance companies, pricing risk is a primary concern. They use historical data to estimate the size of a claim and then charge a premium based on the risk.
Many insurance companies now require that policyholders have adequate defences in place.
The complexity of cyber insurance has caused many insurance companies to reprice their policies and rethink their models.
A cyber policy can be customized to suit a company’s specific business operations, but it also includes access to an incident response team that’s available 24×7.
Typical cyber policies cover the cost of a breach, such as lost income and assets.
However, some policies also cover the cost of paying a ransom. Samson says that this type of policy is usually the only solution to resolve a breach.
The federal government has planned to introduce laws that will compel companies to disclose the details of their ransom payments.
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