• News
  • Security
  • Products
  • About Seqrite
Seqrite Blog Blog
  • News
  • Security
  • Products
  • About Seqrite
Home  /  Cyber Insurance  /  Can cyber insurance replace cybersecurity?
Should businesses prioritize cyber insurance over cybersecurity?
07 December 2020

Can cyber insurance replace cybersecurity?

Written by Seqrite
Seqrite
Cyber Insurance
Estimated reading time: 2 minutes

As new-age threats dominate the business landscape, an increasing number of organizations have come to identify cyber insurance as a key component of their risk management plan. Organizations understand that cybersecurity threats can cause a great deal of financial damage.

A PWC report stated that for a small organization, the average financial loss due to a security incident was approximately USD 1 million, while for medium and large organizations, it could go up to approximately USD 6 million.

COVID-19 has led to an uptick in cyber insurance

Considering the financial losses, cyber insurance can mitigate the risks caused by crippling cyberattacks — this year, in particular, has seen an upsurge in organizations opting for cyber insurance due to the effect of the COVID-19 pandemic.

The increasing number of attacks especially on healthcare services has resulted in organizations actively exploring cyber insurance. A report suggested that the cyber insurance market would grow at a 26% Compound Annual Growth Rate (CAGR) and increase to USD 70,671.9 million by 2030.

Broadly speaking, cyber insurance is also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC). It is a speciality type of insurance and like other forms of insurance, is aimed to protect organizations from risks related to cyberattacks, breaches and other forms of damage that can be caused by malware. While cyber insurance is customized according to each customer or plan, some plans do offer coverage for damage to physical infrastructure as well.

A niche field that is still evolving

However, for enterprises that are considering taking some form of cyber insurance, it is important to understand that it remains a niche field and continues to evolve. As risk assessment is not easy to evaluate, premiums remain high due to the uncertainty of pegging losses.

Restrictive conditions that may be difficult to meet are also imposed by insurers on enterprises such as deploying the highest levels of encryption and complete security patches. There is still a limited number of insurers offering these packages which increases the premiums imposed.

Not a replacement for enterprise security solutions

Before adopting insurance, enterprises should conduct thorough risk assessments and understand the nature of the cyber insurance plan they are opting for. Cyber liabilities have different aspects that distinguish it from other common forms of insurance – there may be breaches that remain undetected and only come to light after months or years. It is important to assess the most integral portion of the organization which may require insurance and then work towards finding a plan that provides both peace-of-mind and protection.

At the same time, it is important not to consider cybersecurity as a replacement for cyber insurance. The two are not interchangeable. At best, cyber insurance offers a level of mitigation for a cyberattack. A definite and thorough cybersecurity plan offers an enterprise the best protection against all manners of cyber threats. In fact, before approving any sort of cyber insurance plan, the insurer will most certainly want to see a strong cybersecurity apparatus before approving a scheme. That is why both cybersecurity and cyber insurance should be part of an enterprise’s overall cyber risk management plan.

Seqrite, Quick Heal’s Enterprise Security brand, enables enterprises to deploy a comprehensive set of enterprise security solutions to proactively safeguard all IT assets of the business.

 Previous PostIs accelerating enterprise digital transformation leading to cybe...
Next Post  Cybersecurity in the holiday season: minimizing the risk of cyber...
Seqrite
About Seqrite

Follow us for the latest updates and insights related to security for enterprise networks. Subscribe to our newsletter to stay...

Articles by Seqrite »

No Comments

Leave a Reply.Your email address will not be published.

Cancel reply

CAPTCHA Image
Refresh Image

Popular Posts

  • New Spear Phishing Campaign using Army Welfare Education Society’s Scholarship form New Spear Phishing Campaign using Army Welfare Education Society’s Scholarship form March 22, 2021
  • 5 Security measures you should take to protect your organization’s network 5 Security measures you should take to protect your organization’s network August 11, 2017
  • Nation-states shoot from somebody else’s shoulder Nation-states shoot from somebody else’s shoulder March 10, 2021

Featured Authors

  • Seqrite
    Seqrite

    Follow us for the latest updates and insights related to security for...

    Read more..
  • Viraj Talikotkar
    Viraj Talikotkar

    Viraj is a Lead Technical Writer at Quick Heal Technologies. He is always on...

    Read more..
  • Sanjay Katkar
    Sanjay Katkar

    Sanjay Katkar is the Joint Managing Director and Chief Technology Officer of...

    Read more..

Latest Posts

  • How to avoid dual attack and vulnerable files with double extension?

    How to avoid dual attack and vulnerable files with double extension?

    April 9, 2021
  • Cryptocurrency Malware: Bitcoin Mining threats you need to know about

    Cryptocurrency Malware: Bitcoin Mining threats you need to know about

    April 4, 2021
  • Zloader: Entailing Different Office Files

    Zloader: Entailing Different Office Files

    March 23, 2021

Stay Updated!

Topics

Antivirus For Linux (10) apt (10) Bitcoin (9) BYOD (9) COVID-19 (10) Cyber-attack (31) cyber-attacks (56) cyberattacks (12) Cybersecurity (284) cyber security (26) Cyber threat (29) cyber threats (44) Data (11) data breach (50) data breaches (27) data loss (28) data loss prevention (33) data protection (21) data security (13) DLP (49) Encryption (16) endpoint security (103) Enterprise security (14) EPS (9) Exploit (12) firewall (11) GDPR (10) IoT (10) malware (59) malware attack (23) malware attacks (12) MDM (25) Network security (18) Patch Management (12) phishing (17) Ransomware (56) ransomware attack (29) ransomware attacks (30) ransomware protection (12) Seqrite (24) Seqrite Encryption (27) Seqrite EPS (33) Seqrite Services (16) UTM (34) Vulnerability (10)

Products

  • Endpoint Security (EPS)
  • Seqrite Encryption Manager
  • Seqrite Endpoint Security Cloud
  • Cloud Security
  • Seqrite mSuite
  • Seqrite Workspace
  • Unified Threat Management
  • Antivirus for Server
  • Antivirus for Linux

Resources

  • White Papers
  • Datasheets
  • Threat Reports
  • Manuals
  • Case Studies

About Us

  • Company Overview
  • Leadership
  • Why choose SEQRITE?
  • Awards & Certifications
  • Newsroom

Archives

  • By Date
  • By Category

© 2020 Quick Heal Technologies Ltd. (Formerly Known as Quick Heal Technologies Pvt. Ltd.) Cookie Policies Privacy Policies

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website.
By browsing this website, you agree to our cookie policy.