Technology has become a double-edged sword. We can’t live without it. Our phones are often the first thing we look at in the morning when we reach to silence that alarm. However, this dependence has led to one of the world’s greatest vulnerabilities: cyber exposure. As cyber threats continue to not only increase, but also rapidly evolve, the cyber insurance market has become extremely volatile.
As it becomes harder and harder to protect the confidentiality of any internet-based private information, more and more companies and organizations are purchasing cyber policies. With so much change happening at once, insurance companies are competing to keep up.
Three Things to Expect in the Marketplace
As we move into 2020, here’s how we can anticipate cyber insurance will change:
- High Levels of Competition
Out of all the unknowns we currently face, one thing is crystal clear: cyber coverage has become essential. With increased awareness and low loss ratios, cyber insurance has become a high growth area with more carriers, more service options, and lower premiums. As carriers compete with one another, the expanding number of service offerings can be confusing. Cyber insurance providers will offer services and service providers will offer cyber insurance. Both buyers and brokers have to struggle to keep up with the latest products and coverages available for their clients.
- Fast Evolution
Because cyber security threats are constantly changing, the cyber insurance market has to rapidly adapt to keep up with the ever-shifting cyber exposures. With sensitive information being hacked from computer systems in new ways every day, the insurance industry has to constantly adapt their policies and fully understand how coverages should apply. With more and more technology relying on the internet and greater uses of cloud-based data storage, the severity of attacks will only continue to increase. In addition, new targets, such as government entities (including utility companies), will lead to more serious consequences.
- Clashing Ideas
Because the market is so volatile, all carriers are working to stand out and identify themselves as unique. There are many opposing opinions on how to address marketplace issues. And while advances in cyber security technology are growing, it’s often this new technology that can be utilized to assert attacks as well. Staying up to date on all things cyber has become a necessity. While cyber security technology is improving, it’s often human error that’s the real weakness. Being aware of the latest threats and how to both identify and avoid them will help increase information security.
Cyber Threats to Watch
- Deepfakes: These attacks utilize technology to produce videos that have been manipulated and appear so realistic many people can’t tell they’re not real. It was during the 2016 U.S. election that it became clear that these videos were a danger. These will only become more and more sophisticated.
- Ransomware: While these attacks have been around for some time, they’re not slowing down anytime soon. Ransomware attacks, including social engineering attacks, will continue to grow in both frequency & severity. These attacks often rely on human emotion/error and commonly come in the form of an email.
- Cloud-Based Attacks: We can likely expect a major cloud breach related to default settings and misconfigurations that will affect many clients at once, leaving many organizations forced to rethink their approach to data storage.
As brokers, finding the right policy for your clients can mean protecting their livelihoods, homes, and families. With the marketplace changing so frequently, it’s imperative to educate yourself and stay current on all things cyber.
In addition to our FREE brokers resources, our latest addition, The Six-Step Guide to Becoming Your Client’s Cyber Security Expert, will help you get up to speed with the latest industry information so you can help your clients get the best possible coverage available.
To learn more about how to protect your clients, contact us or call a ProWriters expert today at 484-321-2335.