An article came across my desk last week, that immediately caught my attention. A recent story in CFO online magazine has given me the news I had been hoping for. Finally, I am seeing the results of everything I have been working for, recommending, advocating and advising my clients, for the last 10-years….
Love this statistic:
“A September survey by the Risk and Insurance Management Society found that 80% of the companies recently surveyed, purchased a stand-alone cyber-security policy in 2016.”
The takeaway: Policies covering exclusively cyber exposures are becoming the new normal for many large companies.
Yahoo! Mail, is one of the largest and latest data hacks that has grab headlines since Sept 22nd. More than 500 million users saw their passwords, phone numbers and other information accessed in an ongoing data breach. This continuous cavalcade of data breaches, ransom-ware, cyber extortions, theft of trade secrets and theft of intellectual property, has affected major corporations that no one believed could possibly be penetrated or hacked. Even various U.S. Government Agencies, including the Department of Homeland Security are not so cyber-secure.
“Beginning May 20, 2013, DHS acknowledged that a host of sensitive personnel security information has been potentially accessible by unauthorized users since July 2009. The personally identifiable information (“PII”) (including name, Social Security numbers and dates of birth) was submitted by thousands of employees and contractors for background investigations and by persons who received DHS clearance. “
So I am delighted, encouraged and relieved that in 2016, most large companies are finally accepting the fact that they are vulnerable and that cyber-insurance no longer simply an option. It is a cost of doing business. Most large business respondents that were mentioned in the CFO article, are worried about reputational harm (82%), notification costs (76%), and business interruptions caused by both network outages (76%) and data loss (75%) from cyber breaches.
What is next? Encouraging more companies to understand the importance of cyber-liability insurance and pushing a “trickle down” effect to medium and smaller Main Street type businesses. Many “Mom and Pop” shops often consider any additional insurance expenditures to be cost prohibitive, but there are other options for smaller businesses such as Endorsements to their existing BOP Business policies that can make the cost more manageable.
One last statistic to make you think.
According to Claims Journal Magazine, October 19th, 2016 issue, "The average cyber breach claim for a large company was almost $6 million, according to the findings released by NetDiligence in its latest study on cyber claim costs."
Why would anyone even consider NOT investing in a cyber-liability insurance policy?
#cyber-insurance #security #breach, #cyberaware #cybersecurity #insurance #