Cyber attacks are a major problem for companies as they represent a real financial threat to the companies. That’s where Cyber insurance Companies perform their role in providing insurance to needy companies. According to IBM, the cost of a total data breach in the world is $4.24 million and increasing. Day by day number of breaches is rising. If a company has not yet experienced a security breach, it is a matter of time before it does.
Experts now advise that a complete cybersecurity strategy not only includes technological solutions aimed to prevent, detect, and mitigate attacks. It also includes insurance to manage financial threats. Insurers carefully asses the companies cybersecurity controls before getting any privacy policy. A good cyber insurer helps partner companies to afford better security controls.
How to get a good cyber insurer?
When you are going to select an insurer from cyber insurance companies, organizations have to consider several factors like, the financial condition of the vendor, type of service provided, and the cost of the service. Service can be of different types such as breaches, ransomware, DDoS attacks, and many more others. Many insurer companies offers ancillary services designed to help protect against, prepare for, and respond breaches. Having partnerships with insurers or vendors can be also helpful.
Different insurers charge different rates. Some provide insurance to small firms or companies and some provide insurance to large companies and enterprises. Small businesses are targeted with ransomware, then the existing and satisfactory insurance companies are advised to contact that company, as they are able to offer good and attractive rates to the companies with different types of policies.
While purchasing insurance one should follow the following factors:
- To choose an insurance company that has a good track record in the market has shown better growth and commitment over the long term and has strong financial stability.
- It is important to know what is being offered in the policy by the insurer, and more important, whats not. Companies need to read the policies before purchasing it from the insurer.
- Many insurers outsource their claims handling to third parties, they are not the true partner for the insured.
It is better to move forward with the technological innovations so the business can better respond, mitigate risk, and identify that threaten their employees and company.
Top 5 Cyber insurers
- AXA XL. It holds 10% of the cyber insurance market. It provides a full package of first and third-party coverage. They work with underwriters to make a good understanding of clients and coverage before anything bad occurs. Their privacy policy provides coverage of $15 million. It provides, professional services, privacy and security liability, technology products and services, data breach response and crisis management, business interruption and extra expense, cyber extortion and data recovery, and Ransomware.
- Chubb. It is one of the biggest names in the insurance world. It is been placed among the top cyber insurance providers. According to NAIC, it has covered 15% of the market. It has covered big organizations in size or industry. The company provides cyber ERM which has no minimum premiums, cyber incident response expenses, offers cyber crime coverage, and cyber incidents continued evolution of data storage and hosting.
- AIG. It is also known as the American international group and it has covered an 8.3% share of the cyber insurance market. It provides coverage policies for non-physical and physical losses by cyber threats. AIG can have 100$ million limits and no minimum retention.
- Travelers. This company is also a very big player in the insurance companies as it has 7.7% of the market share. It provides innovative value post-breach and pre-breached risk management at no additional cost. It works with almost 500 companies including big and small businesses.
- AXIS. It is one of the most trusted insurance companies in the cyber insurance market. They have multiple policies to cover reputational damage, business interruption, breaches, data restoration insurances, crisis management, and frauds.
Conclusion
According to NAIC, the insurance company market is worth $4.1 billion in direct written premium and it is increasing every year. This shows how important the cyber insurance market will become in the future. Therefore companies play a great role in the cyber insurance companies market for better growth of IT-based companies who wants, to keep their data and secrets safe and secure.
