Lets make this clear – one fine morning, you the CEO of a £50 Million a year revenue SME, read an article in Financial Times about the importance of taking out a Cyber Insurance policy. You then decide this is just what you need. You call an insurance company and ask them to issue with a quote for a cyber insurance policy. And they go, “hold my beer….”.  

Allow us to elaborate!

The increasing rate of cyber insurance adoption is expected to surge over the next decade, as the growing profile of large-scale cyberattacks — and the accompanying financial risk they impose — prompts company directors and executives to move to limit their company’s exposure to cybersecurity compromise. It is predicted that the cyber-insurance market will grow from approximately $8.5 billion in 2021 to $14.8 billion in 2025, and exceed $34 billion by 2031, based on a CAGR (compound annual growth rate) of 15 percent over an 11-year period (2020 to 2031) calculated.

Cyber attacks are becoming more frequent and more sophisticated, making it essential for companies to protect themselves from the financial losses that can result from a breach. With the rising number of cyber threats, the need for cyber insurance is becoming increasingly important. A cyber insurance policy can provide financial protection for companies in the event of a data breach, cybercrime, or other cybersecurity incident. It can also help companies recover from the damage caused by a cyber attack and minimize the financial impact.

Would you rather pay for cyber insurance, or pay for ransomware?

True, the adoption of cyber insurance is on the rise, many companies are still not adequately cyber-insured. These companies are at a greater risk of suffering financial losses in the event of a cyber attack.

Here are 5 things that companies which are not adequately cyber-insured, should do:

1. Assess their cyber risk: Companies should conduct a cyber risk assessment to identify the potential vulnerabilities in their network and systems. This will help them understand the types of threats they are facing and the potential financial losses that could result from a cyber attack.

2. Develop a cybersecurity plan: Companies should develop a cybersecurity plan that includes measures to protect their networks and systems from cyber threats. This plan should include regular security updates, employee training, and incident response procedures.

3. Invest in cybersecurity technology: Companies should invest in cybersecurity technology such as firewalls, intrusion detection and prevention systems, and encryption to protect their networks and systems from cyber threats.

4. Implement security protocols: Companies should implement security protocols such as two-factor authentication, network segmentation, and monitoring to protect their networks and systems from cyber threats.

5. Purchase cyber insurance: Companies should purchase cyber insurance to protect themselves from the financial losses that can result from a cyber attack. Cyber insurance can provide financial protection for the costs associated with a data breach, cybercrime, or other cybersecurity incident.

Cyber threats are becoming more sophisticated and more frequent, so it’s crucial – especially for the larger of the SMEs – to protect themselves by assessing their cyber risk and taking a fresh look.

We provide a concise pointer in this link for you to get a quick view on how to be Cyber Insurance ready. Check out what this service is, why and when to use this service, what outcomes to expect and how this service will be delivered. Taking out cyber-insurance requires preparation, and it would just not be offered off-the-shelf without a thorough due diligence from the Insurance company!