These days, the definition of cyber insurance has changed drastically and companies have understood how beneficial cyber insurance is for their businesses. A research was conducted by Cowbell cyber and according to the study, nearly 65% of small and medium-sized businesses (SMEs) are planning to spend more money on cyber insurance as part of their cyber resilience plan in the next two years. Nowadays, cybercriminals have become more conscious and are employing newer approaches to create havoc on the victims.
As cyber insurance is flourishing day by day, industries have realized the need for specific and tailored cyber policies that will address their requirements. The coming year will usher in a wave of transformation for cyber insurance. Here, we are going to describe the top 3 cyber insurance trends for 2021.
Cyber insurance education will continue to grow now
The cyber insurance industry is a growing field; thus, you need to educate potential policyholders, along with agents and brokers. For this, insurers need to offer accessible and simple cyber policies that can be understood by anyone (even those who are not accustomed to cybersecurity). Though companies have understood how important cyber insurance is for their businesses, still, they aren’t sure how to select the right policy. According to research by Advisen and PartnerRe, the top three hindrances to selling and writing cyber insurance are:
· Not understanding exposures
· Not understanding coverage
· Cost
All policyholders need to understand what cyber insurance exactly covers and what is not. Further, the cyber insurance industry needs to maintain transparency overall. In the coming few years, insurers will remove unnecessary verbiage from policies and should offer an improved experience for both policyholders and insurers. Insurers also will embrace the policyholders with online tools that will educate them on the cybersecurity risks regarding their sectors.
Cybersecurity and insurance will develop a close partnership
Earlier, the cybersecurity and cyber insurance sectors are considered different sectors. But now, they are coming closer together. This will create some intriguing and exciting opportunities for both sides.
Cyber resilience demands both cybersecurity and cyber insurance. In pursuit of cyber resilience, companies need to deploy cybersecurity tools for threat protection, detection and extenuation. In case of any accident, the company should be prepared with a response and recovery plan. Cyber insurance alleviates loss after a security breach.
In the future, insurance providers will work closely with cybersecurity professionals and will offer coverage for more delicate attacks like ransomware, cyber extortion, social engineering and business interruption.
Insurance industry language will become simple and standardized
Because of a lack of coverage understanding, most organizations don’t adopt cyber insurance for their businesses. The cyber insurance industry needs to do some strenuous efforts to establish clarity. They need to use simple terms to refer to sensitive information, whether that be corporate files, health records or personal data.
The insurers should portray everything clearly, especially what risks businesses may experience in future and how they can protect themselves. Since cyber insurance is thriving rapidly, hence this sector is making strong relationships between insurers and policyholders. The cyber insurance firms that offer useful tools, speak in simple terms and collaborate with the cybersecurity sector, will certainly become the frontrunners of the era.
These are the top 3 growing cyber insurance trends for 2021.
Surewise is a popular firm that offers various types of insurance including cyber insurance, website insurance, business insurance, commercial property insurance, and many more. The company has professional and deft account managers who will offer you the best cyber insurance plan after analysing your business needs.
Visit the official website of Surewise and collect more information about various cyber insurance plans.
