Cyber risks are changing every day and are not limited to major corporations. Any small business, or even individual person are at risk. This new reality has made cyber insurance a must have for most businesses in the United States. Knowing that, it may not come as a surprise that insurers will soon be paying more for cyber-related issues than natural disasters.
One of the biggest issues tied to cyber security isn’t the pervasiveness of the attacks, it’s the lack of measurement and modeling tools that exist to help insurers create accurate models to inform their coverage. Without modeling tools insurers are really flying blind when it comes to create cyber policies.
Scor Chairman and Chief Executive Officer Denis Kessler spoke at a conference recently. “I dream of a kind of Richter scale for cyber security,” said Kessler. “It would be very helpful to have measurement and modeling tools. Unless we can model, it’s very difficult for us to provide coverage. We have scenarios but not modeling tools.”
Cyber is already a major risk for any business, and it’s still a relatively new phenomenon. Experts all agree that cyber attacks are only going to get worse as technology continues to improve, and more of the world becomes connected to the internet. As a result, cyber security costs are going to increase exponentially.
Kessler predicts that these costs could go up by $600 billion a year in a worst case scenario situation. That means a best case scenario is still going to be devastatingly pricey. To combat this insurers need to find a way to offer affordable cyber security policies that still offer the proper amount of coverage.
All of that being said, it is still important to invest in cyber security coverage now, especially if you are a small business owner. Yes,there are still improvements to be made with those policies, but some coverage is always better than none.
To learn more about your current policy, or to inquire about a new one, we encourage you to reach out to TGS Insurance at www.tgsinsurance.com.