Organizations love Cyber Insurance, but it’s no easy feat: Survey

TLDR: More organizations are purchasing cyber insurance in response to the growing number and sophistication of cyberattacks, according to a survey from Recast Software. However, buying cyber insurance can be challenging for businesses as they try to comply with insurers’ requirements and accurately assess their risks and insurance needs. Insurers are being urged to be more proactive and help organizations understand their cyber risks. The global cyber insurance market is expected to reach $84.62 billion by 2030, up from $13.33 billion in 2022, as cybersecurity incidents become increasingly costly. Many insurers require security practices and technologies such as adequate cybersecurity budgets, evidence of security and training programs, and effective incident response teams. However, respondents to the survey highlighted difficulties in meeting insurers’ requirements, with 50% saying it was difficult to comply and 46% stating it was difficult to afford cybersecurity insurance. Although having cyber insurance improved organizations’ security posture for 49% of respondents, 45% reported no change in the number of attacks, and 44% said their IT security costs remained the same. The survey also found that 39% of organizations either go by their gut feeling or do not perform any risk assessment at all, while 58% of insurance companies rely on questionnaires rather than on-site assessments to assess risk. Insurers need to help organizations meet the growing demands for achieving minimum security thresholds in order to receive cyber insurance coverage. The report suggests that organizations need to be better equipped with resources and solutions in order to comply with regulatory requirements.