Rising cyberbullying drives up cyber insurance premiums while reducing availability

It has been almost 20 years since cyber insurance started.

These insurance policies cover damages related to cyber such as data breaches and ransomware, virus attacks, causing loss of business or disruption.

While more companies are looking to insurance to protect against damage caused by attacks, premium rates are stagnant and access to policies is changing.

There have been massive attacks like last year's Colonial Pipeline ransomware attack that caused huge financial losses

In such a situation, insurance companies have started taking steps to compensate their losses.

More insurance customers are opting-in for cyber coverage – from 26% in 2016 to 47% in 2020.

More insurance customers are opting-in for cyber coverage – from 26% in 2016 to 47% in 2020.

The insurers have also tightened the terms and conditions of the policy to reduce the unforeseen losses caused by cyber attacks.

Such changes translate into less coverage, stricter standards and more exclusions for policyholders.