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Cyber Insurance - Good or bad??

Does Cyber insurance protect your organisation’s data? We have witnessed most of the governments, organizations and people have been threatened by cyberattacks and data breaches. The attacks since then have grown to be more sophisticated causing severe monetary and reputation loss for organizations. Taking stock of the growing numbers and scale of recent cyberattacks, a global survey ‘The State of Ransomware 2021’ conducted by cybersecurity firm Sophos, states that the total cost of recovery from a ransomware attack has more than doubled in a year, increasing from 761,106 dollars in 2020 to 1.85 million dollars in 2021 globally. In comparison, the survey found that in India, the approximate recovery cost from the impact of a ransomware attack tripled in the last year, up from 1.1 million dollars in 2020, to 3.38 million dollars in 2021. A global threat report says, cyberattacks top the list of human-caused risks globally, and research has predicted that cybercrime may cause damages worth 7 trillion dollars by the end of this year.

Facing the daunting prospects of major financial fallout from a cyberattack, CXOs around the world have turned to cyber insurance. Several companies have opted for cyber insurance to seek protection against huge financial losses. On the flipside, several hacking groups are now seeing this as a lucrative opportunity to launch cyberattacks against organizations that are backed by insurance companies. In fact, these groups brazenly display details about the company’s cyber insurance cover page and demand the ransom to be paid up since they are insured. Hence, having cyber insurance might cover an organization from monetary loss but it cannot protect it from leakage of confidential data and reputation loss across the industry. Organizations need an array of resources to protect themselves against cyberattacks by stringent cybersecurity.