MGA : TPA
INSURANCE
IMPLICATIONS OF CYBER SECURITY
" Cybercriminals usually chase the money ,” says Charles Henderson , Head of IBM X-Force . “ Now with ransomware they are chasing leverage . Businesses should recognise that vulnerabilities are holding them in a deadlock – as ransomware actors use that to their advantage . This is a non-binary challenge . The attack surface is only growing larger , so instead of operating under the assumption that every vulnerability in their environment has been patched , businesses should operate under an assumption of compromise , and enhance their vulnerability management with a zero-trust strategy ."
Rising costs could price SMEs out of cyber insurance There are growing calls that economic difficulties will make cyber insurance less attainable for small and mediumsized enterprises ( SMEs ), which are more susceptible to rising prices . The market research company GlobalData has warned that SMEs could start to deprioritise cyber insurance cover in favour of other business expenses .
GlobalData found that 17 % of SMEs in the UK did not have cyber insurance coverage in 2021 because it was deemed too expensive , while 29 % had already cancelled their policies in a bid to cut costs . This was in spite of a growing likelihood of cyber attacks . Hybrid working and the war in Ukraine have increased the level of cyber risk to businesses , meaning insurers are unable to respond to the cost-of-living crisis by lowering their premiums . It means that
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