Cybercrime rose last year by 11%. Clients are aware that it’s no longer a matter of if they get attacked, but when. In fact, cybercrime is set to cost in excess of $5 trillion this year. Companies are investing an unprecedented amount in cyber insurance—$10 billion this year alone. Yet, when disaster strikes, many of these companies won't receive a payout. Why?
Cyber liability insurance companies offer payouts that only cover 2% of the incurred damages. Because the market is still relatively new and unregulated, the risk of wide-range multiple attacks across insurance customers is high. Add to that the blurred lines between property, auto, and cyber risk, and you get insurance companies that are hesitant to deliver payouts.
Various elements of Cyber Security