Lindsey Nelson - Cyber Development Leader, CFC Underwriting
The cyber threat landscape over the last year has proven to be the most volatile yet in the history of the market, for the simple reason that the risk is too low and the profitability too high for threat factors.
As a result, cyber insurers have had to evolve just as quickly to prevent and respond, leading to the following predictions for the year ahead:
- Zero-day ransomware attacks will dominate the headlines, whereby criminals exploit software vulnerabilities before any patches are available to avoid them by businesses. This means that the only way to prevent an attack is through improved security controls in advance.
- Third party dependencies will continue to be a weak link for cyber risk. Managed Service Providers and Cloud Computing Providers will continue to be lucrative targets for cybercriminals, with the fear of the next large-scale systemic risk event – where a single event has the potential to impact thousands of businesses – at the forefront of everyone’s mind.
- Cyber insurance will predominantly become a proactive risk management service. Insurers will seek to prevent claims before they happen and will pivot to conducting scans to detect vulnerabilities as an added service through mobile app technology.
- Increased scrutiny by both regulators and government advisory groups with a focus on improving security standards for businesses to prevent attacks. Equally, government bodies will seek to ensure there is more transparency around when businesses decide to pay ransom demands through legislation.
- Criminals will continue to target businesses in industries where standards for security have historically been weak. Manufacturers and distributors have been particularly impacted in the last year given dependencies on automation, robotics, and the supply chain as entryways in their networks.
- As a result, the cyber market is expected to continue to harden with more corrective action taken on rates to ensure the coverage can be maintained as broadly as it has been. Cyber will move from ‘hard to sell’ to ‘hard to buy’ based on limited available capacity, and undoubtedly become where a company’s largest exposure now lies.
Cyber insurance from Towergate
Towergate are actively engaging with insurers and our clients to obtain cyber protection for businesses of all sizes, to protect against the very real and growing threats of the digital age. We can offer cyber insurance for businesses to help protect you should the worst happen.
You can find more information about how cyber insurance can help your business in our cyber information hub or get a quote online.
Alternatively speak to your usual Towergate advisor.
About the author
Mark Brannon Cert CII is a respected industry leader with over 17 years’ industry experience in a variety of roles within the business insurance sector. He works across a wide spectrum of insurance product and policy development, delivery and optimisation for clients, including claims, insurer relationships, marketing and communications, and risk management.
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The information contained in this article is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact your usual Towergate Insurance Brokers adviser or email TIB@towergate.co.uk.