Cyber-related business interruption now a top concern of risk managers
- 82 percent of respondents stated that cyber risk has become a significant concern across their entire organizations.
- 95 percent of respondents said that they expect business interruption to be covered under their cyber policies in the event of a claim.
- 75 percent reported that they expect contingent business interruption to be covered, reflecting awareness that third-party cyber breaches affecting vendors can impact supply chains and vital services.
- 74 percent of insurance buyers who changed their cyber coverages in the last year did so to purchase higher limits than those provided by their prior policies.
"The cyber insurance marketplace is expanding and maturing to meet the increasing demands of corporations concerned about the ever-evolving cyber risks," said
The survey details how customer needs and expectations are changing. In their infancy, Cyber-related claims typically involved costs incurred for reconstruction of data following a breach, user notifications, mitigation services for affected individuals, and regulatory fines and penalties. While those risks remain, the intensifying threats posed by ransomware and related schemes are focusing risk managers on the potential business interruption dimensions of literally losing control of their networks.
"In the past, the most attractive targets were organizations with large databases of personally identifiable information that could be stolen and monetized on the Dark Web," said
The 2019 Advisen cyber survey found that corporate insurance buyers' increased awareness of the business interruption potential of cyber attacks is driven in part by the increasing frequency of headlines about ransomware attacks over the past 12 to 18 months. Choosing from a list of 11 possible outcomes of cyber risk events, 95 percent named data breach as the number one risk, followed closely by cyber-related business interruption at 94.5 percent and cyber extortion/ransom at 89 percent. One respondent commented: "This is what I would want MY cyber policy to cover."
Another risk addressed by survey respondents concerned the potential impacts of regulatory fines and penalties. In the wake of the
The results reflect 350 respondents representing risks managers, insurance buyers and other risk professionals covering both large and small companies around the world. Finance, banking and insurance industries are the most highly represented. Businesses of all sizes but slightly weighted toward smaller and middle market companies having revenues (or budgets for nonprofit or government entities) of
Interested parties can link to the complete survey results at Information Security and Cyber Risk Management: The ninth annual survey on the current state of and trends in information security and cyber risk management.
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