The future of cybercrime and cyber insurance
As technology is thriving immensely over the past few years, cybercrime has become a quotidian word in today’s world. Since businesses are focusing more on online transactions and are adopting new technologies, online hackers are trying to steal sensitive data, financial details, business records, and other imperative information. Because of a data breach, a company will not only face financial losses but also its market reputation gets tarnished. Juniper Research conducted a study, and according to them, by 2024, the collective costs of a data breach will reach $5 trillion. We can expect to see a 70 per cent rise in cybercrime during this time period. Here comes cyber insurance which can help organisations revive their business after a cyber-attack or a data breach.
Cyber insurance is a customized or tailor-made product which provides comprehensive Insurance cover for liability and expenses that a business may experience. Many insurers provide cyber insurance Adelaide to the businesses so that they can overcome the losses and can run their business in a hassle-free way.
Cyber insurance plays an imperative role for businesses as it gives them both opportunities and challenges. A company can utilize cyber insurance in many ways like by addressing customer needs with innovative and new products, partnering with other reputed organizations to improve business outcomes and moving beyond risk coverage to risk extenuation. This will certainly enhance the profit of the company if it is done correctly. But at the same time, it is quite challenging especially when underwriting is driven by competition.
Here are three ways that an insurer can consider to improve its cyber insurance capabilities.
Don’t refurbish your existing products for cyber insurance:
Cyber insurance is a different thing and insurers should consider unique ways which can address all the issues of the customers. Most of the times, an insurance company retrofit its existing products or base services on terrorism coverage. Though it was quite popular after 9/11, carriers need to analyse the nature of cybercrime before offering insurance. If they don’t assess the crime properly, they may not be able to provide a customized insurance policy to the businesses.
Should work with customers to make a strong and robust line of Defence:
These days every business is using technologies to firmly establish their presence in the market. So, data breaches are inevitable in this tech-savvy world. Every insurance company and their customers need to tighten up controls and defences at several levels. If required a company should make partnerships with security firms to get more access to information. This will help insurers better assess of the cyber-crime. Moreover, ongoing testing is important which will help insurers to understand their customers in a better way. But unfortunately, most insurers don’t test their customers’ defences.
Make a separate cyber policy:
“Loose” underwriting will certainly create confusion between the insurers and their customers. In this competitive market, an insurance company should take a closer look at its cyber underwriting practices. By considering cyber as a standalone product, a company can alleviate exposure. At the same time, they also need to standardize and tightening up the vague policy language.
Surewise is an eminent insurance company which offers various insurances including cyber insurance, business insurance, and personal insurance. The company has a dedicated team of professionals along with account managers who will ensure that all your insurance needs are met. Apart from handling your insurance claims, the company also provides supports that you may need to thrive your businesses. To know more about the company and its services, you must visit the website of the company.