WOLF & CO Insights Cyber Insurance: Rates Rapidly Increasing

Cyber Insurance: Rates Rapidly Increasing

As time marches on and we all now live in the post-pandemic world, normal routines will hopefully return to normal. In cybersecurity, that may never happen. Ransomware, cyber attacks, and data breaches are occurring on the regular and hitting the news headlines. Threats to organizations infrastructure, services, and data are always evolving. As this is happening, organizations choose to transfer some of their risk by obtaining cyber insurance. Cyber insurance premiums are on the rise in a big way, some as much as 50% to 100% more than the previous year.

The process usually begins with a security program fact-finding mission by the insurance company. This may be in the form of an online system or more manual questionnaire- either way, the insurance company is going to weigh that new potential customer’s security risk and that’s how they will get to a premium price. Getting these risky areas to a level that is acceptable takes security expertise that may not be part of the organization. The Cyber Insurance market is asking for additional information to confirm that the controls they would like to see are in place. This starts to turn into an audit of sorts. vCISO quickly building and implementing an information security program can be very time-consuming and costly, and hiring a CISO to take on such an effort has a high price. Using a third-party service like a virtual CISO is an option. Being able to quickly assess an organization’s current state from an information security perspective, and then building the strategy to get that in place, is a skill set that can overwhelm whoever may be tasked with doing it.

For more information on Wolf’s vCISO services, check out this page on our website.