The COVID pandemic has forced everyone into going completely remote, relying on less secure servers and entry points, resulting in many cyber breaches. This has resulted in the increase in demand for cyber insurance and the related polices skyrocketing along with its costs.
According to a global survey conducted by Willis Re, responders were concerned that with many people working from home, it has created a perfect storm for cyber breaches.
- 86% of respondents believe the pandemic has only increased the frequency of cyberattacks, with 54% saying the severity will only increase
- 45% believe that the supply of cyber coverage will not increase to meet demand, with the most pessimism coming from North America, “Respondents in North America were the most pessimistic, possibly reflecting “more cautiousness” in underwriting appetites in recent months, while Asia-Pacific respondents were more optimistic. All over the world, most respondents (74%) expect cyber insurance prices to rise, in keeping with a harder insurance market in many lines[1].
- Many are expecting a cyber event that will be over 10 billion in damage with all of the connectivity with 1 in 3 believing such a thing will occur and has only increased since the pandemic started, with Asian Markets being extremely worried and European markets not as worried but still in the back of their minds.
- Silent Cyber exposure has only increased with 57% believing that the exposure has increased issues with risk assessments and contract uncertainty.
As the market gets more and more crowded, the demand for it will continue to rise and the supply may not be there. Consult your provider on what you might need to protect your business going forward.
[1] https://www.advisen.com/tools/fpnproc/fpns/articles_new_35/P/378329075.html?rid=378329075&list_id=35