Cyber Insurance will likely continue to rise in the coming year
In Q1 2022, premiums for cyber insurance rose nearly 28% when compared with Q4 2021, largely due to heightened awareness of the financial and reputational risks of cyber incidents, such as ransomware attacks, data breaches and related cybersecurity issues. Industry experts are predicting these premiums will continue to rise throughout 2023.
Concurrently, underwriters are tightening the requirements for obtaining cyber insurance by requiring companies to adopt proven security practices, such as two-factor authentication, and by utilizing specific technologies, such as EDR and XDR. Once upon a time, insurance seekers needed only to complete a two-page questionnaire about their use of cybersecurity practices. Those days are over. Today, these documents are full audits and may require 12 or more pages to complete.
The role of the supply chain in rising insurance rates
We're also likely to see an increase in the demand for cyber insurance arising from supply chain issues related to cybersecurity failures, as more companies are likely to start requiring that any vendor or third party they work with have cyber insurance. This demand for cyber insurance will only place additional pressure on insurance companies to increase prices and requirements for obtaining these policies.
2023 should also bring more scrutiny around where developers are located and where code is being written. And more organizations will be placing their focus on software composition analysis and secure code development, particularly in relation to how each component can have an adverse effect on our nation’s supply chain. When COVID showed us in stark terms what impacts a disrupted supply chain could have on our economy and national well-being, it also elevated the role of the supply chain from a dynamic resource management system to that of being a practical target of national security.
CHR is here to help you stay secure
Managing security solutions for your organization can be difficult and costly. At CHR, we understand the budgetary limitations small and mid-sized businesses face. Our team of certified and experienced security engineers can work with you to develop, implement, and support a solution that best fits your needs.
