Cyber Insurance White Paper: Bridging Growing Risk Protection Gaps

As the threat landscape continues to evolve, businesses are facing unprecedented risks in the digital age. Cyber attacks can result in devastating financial losses, reputational damage, and even business disruption.

The average cost of a data breach in the United States is $8.19 million, according to a study cited in our white paper. This staggering figure highlights the need for robust protection measures.

Cyber insurance can provide a vital safety net for businesses, helping to mitigate the financial impact of a cyber attack. By transferring some of this risk to an insurer, companies can focus on what they do best – delivering their products and services.

In our white paper, we explore the growing need for cyber insurance and the benefits it can bring to businesses.

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Cyber insurance premiums have risen significantly over the past few years, making it increasingly difficult for businesses to afford adequate protection.

The average cost of a cyber attack is now $3.9 million, up from $1.6 million in 2018.

Businesses are struggling to keep up with the rapidly evolving cyber threat landscape.

In 2020, 61% of organizations experienced a data breach, resulting in a median loss of $200,000.

The cost of a single data breach can be devastating for small businesses, which often lack the resources to absorb such a loss.

The number of cyber attacks on small businesses has increased by 50% over the past two years.

NH 360 Protect offers a comprehensive warranty and cyber insurance solution that safeguards your business from unpredictable cyber threats. This protection extends beyond traditional security measures, providing a safety net that covers a broad spectrum of potential risks.

Cyber attacks can have devastating financial consequences, including legal fees, regulatory fines, and reputation management costs. NH 360 Protect's cyber insurance helps mitigate these financial burdens by covering these costs.

In the event of a cyber incident, NH 360 Protect provides access to a network of cybersecurity experts who can help you recover quickly and effectively. This includes IT specialists, forensic investigators, and legal advisors who work together to minimize the damage.

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Your reputation is priceless, and a cyber attack can erode trust and damage your brand's image. NH 360 Protect's cyber insurance shows your clients and partners that you take cybersecurity seriously, enhancing your credibility and trustworthiness.

NH 360 Protect's cyber insurance solutions often come with guidelines to help you meet compliance requirements, ensuring you're always on the right side of the law.

A cyber insurance white paper is a comprehensive guide that provides valuable insights into the world of cyber insurance. It's a must-read for business owners who want to stay ahead of the game and protect their companies from cyber threats.

The recent study by BlackBerry and Corvus Insurance surveyed 415 IT and cybersecurity business decision makers and found that organizations are underinsured or uninsured. They're looking for the government to help, which is a clear indication of the growing need for cyber insurance.

The study revealed that the cyber insurance market has been experiencing a hard market, with ransomware driving losses and insurers re-evaluating their exposure. This has led to higher premiums and lower limits, making it difficult for businesses to get the coverage they need.

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The white paper, "How Cybersecurity Insurance Provides Protection", offers a detailed analysis of the cyber insurance landscape and provides guidance on how to navigate the complex world of cyber insurance. It's a valuable resource for business owners who want to protect their companies and stay ahead of the game.

Here are some key takeaways from the white paper:

Overall, a cyber insurance white paper is an essential resource for business owners who want to stay ahead of the game and protect their companies from cyber threats.

Cyberattacks are a top concern for experts, with 40% ranking them among the top five global risks. Many organizations are inadequately shielded against cyberattacks, with 87% of global decision-makers believing their organizations are vulnerable.

The global cost of cybercrime is projected to rise from USD$8.5trn in 2022 to nearly USD$24trn by 2027. This staggering increase highlights the importance of investing in cyber insurance.

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Only 55% of respondents currently have cyber insurance, leaving many businesses exposed to cyber threats. Of those with insurance, over one-third (37%) aren’t covered for ransomware payments.

Ransomware payments reached a record-breaking USD$1.1bn in 2023, with many businesses struggling to cope with the financial burden. The median 2021 ransomware demand was $600,000, but only 19% of all businesses surveyed have limits greater than this amount.

The cyber insurance market is growing, with the global market valued at USD$14bn gross written premium (GWP) in 2023. However, the cyber risk protection gap is substantial, with insured losses covering only 1% of economic losses due to cyberattacks.

Here are some key statistics on the state of cyber insurance:

Catastrophic cyber incidents can be classified into two main categories: incidents considered insurable up to a certain level, and incidents generally considered non-insurable.

Mass malware and mass cloud outages are examples of cyber incidents currently deemed insurable up to a certain financial threshold.

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The categorization of catastrophic cyber incidents is based on factors such as the nature of the cyberattack, its scope, the type of damages caused, and the economic losses at stake.

Cloud adoption has significantly reshaped how insurers assess cyber risk, making the process far more nuanced and intricate than it was just a few years ago.

The fast-evolving nature of cyber threats complicates the establishment of sound actuarial premiums, making it challenging for insurers to accurately price cyber insurance policies.

The cyber landscape is in constant flux, unlike traditional insurance lines that rely on decades of historical data, which makes it difficult for insurers to develop new models to accommodate this ongoing uncertainty and change.

Implementing controls like EDR can reduce an organization's risk enough to become insurable, passing remaining risk to the insurer. This allows organizations to reduce their risk twice.

Cyber insurers can be a valuable resource for organizations, helping with investment discussions with the board. They can provide insights on how investing in security measures like zero trust can lead to lower costs of claims and fewer losses.

Insurers have access to loss statements, which can inform the industry and provide valuable data for organizations. This data can help organizations make informed decisions about their security investments.

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Cyber insurance can be a valuable strategic partner for businesses, helping to mitigate financial burdens and reputational damage in the event of a cyber attack. By understanding the unique vulnerabilities and needs of your business, Next Horizon can tailor cyber insurance solutions to your industry, size, and specific risks.

Implementing security measures like EDR can reduce risk to the organization, making it insurable. This allows the organization to pass much of the remaining risk to the insurer.

Cyber insurers have valuable data and insights that can help organizations make informed investment decisions. For example, they can provide loss statements to help organizations understand the potential costs and benefits of investing in security measures like zero trust.

With cyber insurance, organizations can also gain access to a network of cybersecurity experts who can help them recover quickly and effectively in the event of a cyber incident. This includes IT specialists, forensic investigators, and legal advisors who work together to minimize damage and get the business back on track.

Cyber insurance can also help organizations meet compliance requirements and maintain a strong reputation. By showing that you take cybersecurity seriously, you can enhance your credibility and trustworthiness with clients and partners.

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The next horizon qualification typically builds on the foundation established in the previous level, requiring a more advanced understanding of the subject matter.

You'll need to demonstrate a deeper level of proficiency, often through a combination of coursework, projects, and assessments.

In some cases, the next horizon qualification may involve a capstone project or a comprehensive exam that tests your ability to apply theoretical knowledge in real-world scenarios.

The next horizon qualification is a significant milestone in your educational or professional journey, marking a major step towards specialization or advanced expertise.