Demand for Cyber Insurance coverage is climbing. Experts in Cyber Insurance trends project the market will grow from $16.66 billion in 2023 to $84.62 billion by 2030. Whether you’re an independent broker or part of an agency, you need Cyber Insurance resources to help you stay competitive in this market.
The resources we at ProWriters offer help brokers and agencies understand current and emerging Cyber Insurance trends, and help you become an invaluable Cyber Insurance resource to your clients.
3 Trends Driving Cyber Insurance Demand in 2023
Several trends are driving businesses’ growing demand for Cyber Insurance coverage.
1. The volume of cyber attacks is still increasing.
In 2022, cyber attacks worldwide increased 38% over 2021. Threat actors are becoming more sophisticated and more agile. The United States alone saw a 57% escalation in cyber attacks.
Some economic sectors were more frequently targeted. For example, health care facilities saw an average of 1,410 weekly attacks per organization, up 86% from 2021. But no industry is immune.
2. The prevalence of remote work elevates cyber risk.
More than three years after COVID-19 lockdowns, a significant portion of the workforce still works remotely. In the U.S., “about a third (35%) of workers with jobs that can be done remotely are working from home all of the time,” according to the Pew Research Center. Slightly more (41%) work a hybrid schedule.
Businesses learned—often the hard way—that remote work increases surface and risk for cyber attack. Workers don’t always use company-provided or -approved technology. Their tech may not include adequate, up-to-date cyber security defenses.
Remote workers may not recognize the risk of sharing sensitive information over unsecured channels. They may also be more likely to fall for phishing emails and other social engineering schemes when working remotely.
3. New technologies present new exposures.
New technologies bring with them new avenues for cyber incidents. For example, the decentralized nature of cryptocurrency makes it a prime target for hacking, theft, and fraud.
And generative artificial intelligence (AI) applications often lack the oversight required to safeguard sensitive data and computer networks. Indeed, users can unknowingly share confidential data with AI models in the prompts they use.
Comparing Your Clients’ Cyber Insurance Coverage Options
When helping clients purchase Cyber Insurance, comparing quotes from multiple carriers is one of the most important steps you can take.
Several factors affect the cost of Cyber Insurance. These factors include business size, industry, and the level of coverage required. By comparing multiple quotes, you can help your clients determine the most cost-effective solution.
But you must also help clients understand they can’t base their decision on price alone. Here are some key elements to consider when comparing policies:
- First-Party and Third-Party Coverage
First-party coverage protects your business client directly. Look for policies including coverage for expenses related to data breach response, such as forensic investigations, legal fees, public relations, and credit monitoring services for affected individuals.
Third-party coverage is essential if your client handles sensitive customer information or relies heavily on digital transactions. It protects the organization against claims made by customers, clients, or other third parties. Look for policies including coverage for legal expenses, settlements or judgments, and regulatory fines or penalties resulting from a cyber event.
- Additional Benefits and Services
Many comprehensive policies offer additional benefits and services to help effectively manage and mitigate cyber incidents. These benefits can include cyber risk assessments, employee training programs, and access to incident response teams.
- Policy Exclusions and Conditions
Carefully review policy wording to understand any exclusions or conditions the carrier imposes. Ensure the policy aligns with your clients’ specific needs and covers the risks they face.
Educating Clients About Cyber Security Best Practices
Too many businesses aren’t aware of the best practices they should implement to protect sensitive data and systems. Increasingly, carriers require organizations to put several of these measures and controls in place before underwriting Cyber Insurance coverage.
Cyber security best practices include:
- Regular updating and patching of software and systems.
- Using strong and unique passwords.
- Implementing multifactor authentication.
- Requiring regular employee training on cyber security awareness and responsible online behavior.
- Implementing firewalls, anti-malware software, and intrusion detection systems.
- Creating and regularly testing data backup and recovery procedures.
- Conducting regular security audits and penetration tests to identify and rectify vulnerabilities before they are exploited.
Register With ProWriters for More Cyber Success
One of ProWriters’ most valuable Cyber Insurance resources is our Cyber IQ Comparative Rate Platform.
It allows you to generate multiple Cyber Insurance quotes in a matter of minutes, ready for your and your clients’ side-by-side comparison.
It allows you to quote any level of cyber risk with confidence, because you get quotes from the industry’s top carriers.
And its white-label customization features let you effectively compete with direct markets.
Register with ProWriters today for access to our Cyber IQ platform. Find out for yourself how easily it lets you quote Cyber Insurance coverage and grow your book of Cyber business.