Cyber insurance changes shape of security for good and bad

TLDR:

Key Points:

• Cyber-insurance landscape is shifting to encourage greater cyber resiliency
• Rising costs of cyberattacks are prompting insurers to re-examine underwriting

How Cyber-Insurance Shifts Affect the Security Landscape

The article discusses the impact of shifts in cyber-insurance on the security landscape. The rising cost of cyberattacks, including downtime, investigations, lawsuits, and ransoms, has prompted cyber insurers to re-evaluate their underwriting processes. In light of recent incidents like the CrowdStrike IT outage, cyber-insurance industry is evolving to fit market needs while ensuring profitability.

There is an ongoing self-correction within the cyber-insurance market as insurers are faced with the challenge of handling cyberattacks and the resulting financial strain. The article highlights how cyber insurers are adapting to the changing threat landscape by encouraging greater cyber resiliency in businesses to avoid cyberattacks.

The article also touches upon the importance of ensuring data remains recoverable in the event of a cyberattack. It emphasizes the need for companies to prioritize backup best practices and cyber resiliency to mitigate operational downtime and reduce the need for ransom payments.

Overall, the goal of both businesses and cyber insurers is to build more resilient IT environments to combat cyber threats effectively and minimize the financial impact of cyberattacks.