McGriff, a prominent US retail insurance broker, has reported that the cyber insurance market rates for 2024 are holding steady, indicating stability as businesses fortify their cybersecurity measures.
Businesses that opt for higher retention levels or deductibles are reaping the benefits of premium savings in their insurance programs.
However, McGriff points out that custodians of large volumes of sensitive records, such as personal health information and financial data, are not experiencing the same reduction in rates as others. Underwriters are adjusting premiums to account for the potential aggregation of significant losses in these sectors.
Changes in premiums are also affecting growing businesses, as revenue growth remains a factor in basic underwriting models.
While some industries may encounter more relaxed underwriting standards, McGriff emphasizes the critical importance of maintaining robust cyber controls and effective vendor risk management practices. Businesses must remain vigilant against cyber threats and continuously enhance their cybersecurity measures to defend against, detect, respond to, and recover from attacks.
According to the 2024 Allianz Risk Barometer, cyber incidents rank as the top concern across industries globally. Data breaches, infrastructure-related cyberattacks, and malware/ransomware attacks are among the leading worries.
The financial ramifications following a cyber event can be significant, encompassing business interruption costs, ransomware payments, regulatory fines, notification expenses, credit monitoring services, forensic investigations, legal fees, and reputational damage.
Furthermore, the cyber threat landscape is evolving rapidly, with hackers employing increasingly sophisticated tactics, including AI-driven ransomware attacks and the use of deepfake technology in phishing schemes.
Looking ahead, McGriff underscores the importance for businesses to stay informed about emerging cyber trends and risks and to understand how these developments could impact their operations and cybersecurity strategies.
McGriff concludes by recommending that businesses and their insurance brokers review their cyber insurance programs annually in light of emerging trends. Additionally, maintaining a comprehensive Incident Response Plan that is regularly stress-tested, updated, and securely stored offsite for immediate access after an incident is essential.
Source: reinsurancene.ws
