Title Insurance Industry outlook switched to negative, Insurtech Lemonade shared Q4 2022 results: premium reached $625 mn, a 64% increase, Insurtech Rootshared Q4 2022 results: written premium a ~23% decrease to $122 mn, Malaysias Insurtech PolicyStreet received license for operate in Australia, Insurtech Kanguro launches pet insurance in Florida, Insurtech Kita secured 4mn led by Octopus Ventures to combating climate change, UNIQA Insurance Group improved 2022 consolidated earnings to EUR 425 mn. At the same time, cyber-insurance policy providers are indicating that current approaches won't be sustainable forever. MSSPs prove their worth by running comprehensive assessments over organisations people, processes and technology controls, leaving no stone unturned. In its 2023 US cyber market outlook, Risk Placement Services (RPS) says that insurance carriers have adapted to underwriting cyber risks even as threat actors raise or change their tactics. Prominent losses feature in the news cycle and continue to raise awareness of the threat of cyber attacks. The strength of cyber insurers lies in providing excellent incident response (IR) and offering support when clients need it the most. But perhaps the most impactful change in the market is one thathigh-risk industries such as constructionhave long-been warned about: with cyber insurance no longer seen as a mere risk-mitigation tool, it falls to businesses to reduce cyber risk internally before applying for cyber insurance (see Biggest Cyber Unicorn Startups). Businesses must and will continue to manage the following issues: Cyber health is not the only unquantifiable factor in the cyber space risk is similarly elusive. Employee awareness and reporting of anomalies to IT administrators can greatly reduce the risk of a successful attack. At the same time demand for cyber insurance has been increasing, supply has been tightening, as insurers and reinsurers take a step back and reevaluate their risk appetites. Global Cyber Risk and Insurance Survey 2022, More action required for higher cyber resilience, Up-to-date information - directly to your mailbox. Our approach in cyber insurance is unchanged: disciplined in underwriting and stringent in risk management. The cyber-attack was discovered in time, so the population of the town of Oldsmar, near Tampa, was ultimately not in danger. Particularly noticeable was the fact that smaller companies and government institutions often continue to be inadequately protected and are therefore more at risk overall. But in some instances, it could be important to have that as an option.. But such measures could have immense bearing on public entities, which are amongthe least prepared for cyberattacks. A handful of accelerating technology trends are poised to transform the very nature of insurance. According to ENISA, the number of supply chain attacks quadrupled in 2021 compared with 2020. The number of companies that already have cyber insurance increased by 20%. Dont worry about the news anymore, through our newsletter youll receive weekly access to what is happening. The solution wont come from either side, but somewhere else entirely: managed security service providers (see 5 Most Important Cybersecurity Controls). The early approach whereby attackers specialised decryption and later on exfiltration of stolen data is evolving to include multiple extortion schemes. A complication for cyber-insurance: FFT on the rise. For example, on a scale from one to 100, scores of 75 or over may be considered best practice, though in tightly-regulated or high-risk industries, the benchmarks would differ. An adequate level of cybersecurity increases insureds resilience and, at the same time, is a prerequisite for access to the insurance market. The range of cyber products still needs to be made better publicised and the additional benefits of those products (i.e. Some criminal perpetrators also cooperate with state actors. For example, access to the insurance market requires fundamental resilience-enhancing measures, such as access management, robust network security, the continuous patching of vulnerabilities and the presence of backups. Addressing security risks from unsecured IoT devices and sensors is critical to fully realize 5G's potential. How Technology-First Insurers Solves Data Problems? By contrast, in a cybersecurity context, attacks can have a snowball effect, with stolen data sold and circulating on the dark web for years. It involves identifying and mitigating risks through a combination of risk management, cyber defense and adherence to relevant government protocols. Fraudulent Funds Transfer (FFT) is a type of cyber-attack where criminals use social engineering tactics to trick Accounts Payable (AP) staff into transferring funds to illegitimate bank accounts.. FFT is closely linked with Business Email Compromise (BEC). Low limits and payouts, along with the 2018 underwriting trends, indicate that while cyber insurance customers are buying more cyber insurance with higher limits than in the previous 2 years, they are not getting what they want. In view of increased vulnerabilities, it is crucial for companies and organisations to have a clear understanding of the threat landscape and ones own weaknesses. Cyber Insurance: To safeguard against financial losses from a data breach, organizations may obtain cyber insurance. Now, three quarters into 2022, the market is clearly showing signs of improvement: New capacity and insurers continue to enter the market. This shortage will continue to be a concern in 2023, forcing companies to invest in training and retaining talent or outsourcing cybersecurity tasks. New Technologies and Devices. Cyber insurance trends in 2023. First-party cyber coverage protects your data, including employee and customer information. Dean Mechlowitz and Bill Haber are the founders of TEKRiSQ, a technology company in Ponte Vedra Beach, Florida. AUTHORS: Pete Bowers COO at NormCyber, Steve Robinson Area President & National Cyber Practice Leader for Risk Placement Services, Cybercriminals love to exploit seasonal opportunities, and consumers are facing a perfect storm of rising prices in the middle of the busiest shopping season of the year, As we look back on the cyber insurance marketplace, we see all the hallmarks of a hardening market, with no signs of relief as we move into 2022, The estimated insurance claims bill from the sequence of earthquakes that hit Turkey and Syria earlier in February appears to be growing, For the global reinsurance industry, activities in 2022 and renewals for 2023 were set against a backdrop of significant economic and geopolitical uncertainties, ILS plays a key role in allowing catastrophe risk to be transferred from the commercial insurance market to investors, providing additional (re)insurance capacity, Global commercial property and casualty (P&C) insurancelines have delivered strong financial performance in recent years following the soft market of 2013 to 2018, Saudi Arabias Insurance Market Outlook: Growth & Digitalisation, Global Cyber Crime, Fraud & Ransomware Survey, 10 Basic Tips to Avoid a Potential Victim of Ransomware. We are in constant dialogue with our cedants and model providers regarding current cyber threats and accumulation scenarios to ensure that our approaches are state-of-the-art at all times. /etc/designs/munichre/mrwebsites/topics-online/current/css/fix.aem-editor.css, Munich Re: Global Cyber Risk and Insurance Survey 2022, Cybersecurity Ventures: Global Cybersecurity Spending To Exceed $1.75 Trillion From 2021-2025, European Council / Council of the European Union: Cybersecurity: how the EU tackles cyber threats, Bundesamt fr Sicherheit in der Informationstechnik (BSI) Lagebericht 2021: Bedrohungslage angespannt bis kritisch, Cybersecurity & Infrastructure Security Agency: 2021 Trends Show Increased Globalized Threat of Ransomware, Tenable: 2021 Threat Landscape Retrospective, Lloyd's Market Association: Cyber War and Cyber Operation Exclusion Clauses, European Union Agency for Cybersecurity (enisa): Threat landscape for supply chain attacks. Our experts continually refine our internal models on the basis of our own and third-party data, and with a particular focus on accumulation risks. The cookie is used to store the user consent for the cookies in the category "Analytics". They will make endorsements around the vulnerabilities scanned, and if not addressed, these could impact an organizations coverage. Businesses of all sizes should have backup and disaster recovery solutions in place along with incident response plans to protect their data from ransomware attacks. Cyber Espionage: Cyber espionage refers to unauthorized access of sensitive data or IP for economic, competitive or political gain through cyberattacks. Sign up today for ACA news, alerts, and events. This website uses cookies to improve your experience while you navigate through the website. also, according to NetDiligence's Cyber Claims Study, between 2016 and 2020, the average cost to an insurer for a cybersecurity claim was $145,000 for . They can ask the right questions, carry out assessments or penetration testing, as well as guide businesses to reach the required level of cyber resilience faster. As 2023 begins, businesses must anticipate and prepare for evolving cybersecurity trends and threats. The following is the first blog post in a multi-part series on cybersecurity insurance produced by ACA Aponixs Thought Leadership Team. Alex Smith, Intermedia Cloud Communications. This comes from our 2022 Cyber Insurance Market Trends Report, based on a survey of 400 decision makers in cyber insurance across the US and UK. This coverage protects against liability for breaches involving sensitive customer information, such as SSNs, credit card details and health records. In-depth industry statistics and market share insights of the Cybersecurity Insurance sector for 2020, 2021, and 2022. Not only large corporations recognise the value of effective security management; medium-sized companies, organisations, cities, municipalities and hospitals are likely to continue to invest. Such actors are often motivated politically or otherwise to cause maximum disruption or even the destruction of processes and systems, in order to trigger economic and political instabilities. Cyber Insurance trends: pressures, perplexity and precaution The UK and US cyber insurance market is rife with complexity. Ransomware: A malicious software that encrypts files and demands ransom for their decryption, ransomware attacks pose a significant threat in 2023. The latest trends in ransomware prevention and protection are Zero Trust Policies, Dark Web Monitoring, and Employee Cybersecurity Training with Phishing Simulations. Requiring multi-factor authentications (MFA) for remote access to networks is the big thing that the insurance industry got in lockstep with over the last few years.. India was in the top three nations that have experienced a lot of ransomware attacks. Similar to a deductible, a retention clause specifies the portion of damages policyholders will be responsible for paying before the insurance policy kicks in. While 88% of company boards regard cybersecurity as a business risk rather than solely a technical IT problem," only 13% of boards have actually instituted a cybersecurity-specific board or committee, according to a cybersecurity report from Gartner. Certain classes exceeding 400%. They should also educate employees on identifying risks and cybersecurity practices, as well as maintaining strong password hygiene. Insurers will have a busy year as rapid growth is expected to continue. RPS data found that fraudulent payments and social engineering fraud among small to medium-sized enterprises made up more than 50% of claims between January and August 2022. We also use third-party cookies that help us analyze and understand how you use this website. In Section 4.1.1, OCE describes the core challenges with the current state of the cyber 7. , and the number of material breaches rose by nearly 25%. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Social engineering attacks have outpaced ransomware ones this year, fuelled by the global shift to hybrid working. Munich Re expects the global cyber insurance market to reach a value of approximately USD $20bn by the year 2025. 2022 Cyber Insurance Market Trends Report. To secure CPS such as robots, autonomous vehicles, drones and medical devices, robust security measures such as encryption, authentication and monitoring must be implemented. Examples include the automotive cybersecurity standard ISO/SAE 21434, which will apply compulsory for all new cars from July 2022, and IEC standard 62443 on cybersecurity in industry and automation. Exacting cybersecurity standards must be defined and complied with by insurers and exposed industry sectors alike. Munich Re experts assume that three factors in particular will characterise the threat landscape in 2022: ransomware, supply chain and critical infrastructures. Similarly, the number of insurers offering cyber insurance increased by about 35% between 2016 and 2019. Together with our clients and partners, we will continue to successfully and sustainably shape the cyber insurance market. The Top Five Cybersecurity Trends In 2023 More From Forbes Feb 27, 2023,12:01am EST AI, An Amplifier Of Human Intelligence Feb 26, 2023,07:00am EST Software Ate The World, But Not Only In The. Prompt injection attacks on AI chatbots can reveal sensitive information about their inner workings and pose a significant threat to the security of the system. Price increases. This example lends itself to comparison to the digital world: despite growing awareness, the actual implementation of cybersecurity still leaves a lot to be desired. Proactive cybersecurity reduces the impact of cyberattacks and can strengthen customer trust, reputation and business growth. The proportion of decision-makers surveyed who were still undecided about arranging cover remained unchanged at 35%. Munich Re supports government and private-sector initiatives to curb ransomware, such as the Ransomware Task Force (RTF) initiated by the US Institute for Security and Technology, and is also a member of the EU-wide No More Ransom initiative. In September 2021, Marsh reported 23% of its clients experienced either a voluntary or involuntary decline in coverage. Extortionists obtained ransoms averaging US$ 118,000 per successful attack (as compared to US$ 88,000 in 2020 according to Chainalysis). This report highlights some of the main cyber risk trends we see from an underwriting, risk consulting and claims perspective, such as the growing cost of ransomware attacks - which has been the major loss driver in recent years, the targeting of more smallersized companies by hackers, the increasing frequency and sophistication of business Thecyber insurance market is still evolving, but according to Robinson, whats clear is that insurance providers can no longer be an organizations only risk management strategy. Read more. The global cybersecurity as a service (CSaaS) market is expected to register a CAGR of 12.6% in the forecast period (2021 - 2026). Its important for agents and brokers to understand that were still in a growth phase, not just in terms of demand and premium, but also in how carriers are managing the risk and its evolution.. IBMs 2021 Cost of a Data Breach Report estimates that the average total cost of a cyber breach is $4.24 million, with the average cost for the financial industry substantially higher at $5.72 million. Managed security service providers (MSSPs) can do this for them, and in 2023, their role will become more pronounced. These cookies ensure basic functionalities and security features of the website, anonymously. 1 concern for the third time in four years in the 2022 Travelers Risk Index. Ransomware losses have dropped in the past few months, but they have increased in severity. Ransomware losses have dropped in the past few months, but they have increased in severity. Part of protecting your business is following cybersecurity industry trends, understanding how criminals penetrate systems, and taking the precautions to keep them out. This cookie is set by GDPR Cookie Consent plugin. Only then can they protect themselves through targeted risk management. [30] The COVID-19 pandemic is likely to have a significant impact on cyber loss activity. Throughout these investigative processes, insurers are working more closely with cybersecurity professionals to better understand where cyber risks lie at an organization. Companies can address and mitigate the disruptions of the future only by taking a more proactive, forward-looking stancestarting today. Also, if they are not protecting company assets, executives and owners will also face increased litigation. While not all cases of FFT involve compromised email accounts, it's estimated that . Phishing And Social Engineering: These attacks manipulate individuals through deceit. The problem is thats not always the case, such as ransomware-as-a-service which are more indiscriminate attacks, he said. The problem is that they need much more information than is currently available to them, something akin to the wealth of empirical data health and car insurers can benchmark against (see Top Cybercrime Predictions for 2023). Until companies make cyber wellness and cyber hygiene a top priority in the boardroom and a key component of their brand, year-on-year premiums will continue to explode. However, you may visit "Cookie Settings" to provide a controlled consent. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Multi-factor authentication (MFA) is becoming a key requisite of many insurers alongside other controls such as the presence of an end point detection and response solution, secured and encrypted backups, privileged access management, business continuity and incident response planning, and cybersecurity awareness training to name a few. In fact, the chief executive of Zurich, one of Europe's largest . Cybersecurity Ventures estimates global spending on cybersecurity in 2021 to have be US$ 262.4bn in 2021. You may be trying to access this site from a secured browser on the server. The cyber-insurance sphere must keep up with ransomware developments. ; Half of Marsh's U.S. clients purchased standalone cyber insurance policies in 2021, almost double the 26% of clients in 2016. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. 5G Security: 5G security protects high-speed mobile services for billions of devices and the IoT. In this market environment, we will be seeing more and more new players and participants covering risk: InsurTechs, managing general agents (MGAs) or alternative means of securitisation (ILS/ART), in which public-private partnerships may also engage in the future in order to protect areas of particular social relevance.