To help guide this research and to receive actionable data on premium rates, coverage limits, and more, take the 2022 Aponix Cyber Insurance survey here. Until companies make cyber wellness and cyber hygiene a top priority in the boardroom and a key component of their brand, year-on-year premiums will continue to explode. The cookie is used to store the user consent for the cookies in the category "Analytics". Here are the top 20 cybersecurity trends to keep an eye on: 1. In September 2021, Marsh reported 23% of its clients experienced either a voluntary or involuntary decline in coverage. Following one such attack on Colonial Pipeline, fuel shortages and panic buying temporarily paralysed regional infrastructure on the US East Coast and made headlines worldwide. Annual premiums have reached an estimated $10 billion and are expected to grow to nearly $23 billion by 2025, according to Fitch Ratings. Communication is strengthening among governments, law enforcement, corporations, and . Carriers have basically raised the bar for entry for cyber insurance, increasing the information security requirements for organizations to qualify. The solution wont come from either side, but somewhere else entirely: managed security service providers (see 5 Most Important Cybersecurity Controls). Also, if they are not protecting company assets, executives and owners will also face increased litigation. The number of companies that already have cyber insurance increased by 20%. 3) Clients expect support, knowledge and resources. The Top Five Cybersecurity Trends In 2023 More From Forbes Feb 27, 2023,12:01am EST AI, An Amplifier Of Human Intelligence Feb 26, 2023,07:00am EST Software Ate The World, But Not Only In The. Scenarios such as the failure of critical infrastructure (e.g. How Technology-First Insurers Solves Data Problems? Cyber attacks on the healthcare sector up by 71% ISP/MSP up by 67% Communications +51% Government and military sector up by 47% We experienced an all-time high in cyberattacks during 2021, with Q4 taking the most blows. Our approach in cyber insurance is unchanged: disciplined in underwriting and stringent in risk management. Social engineering tactics involve using manipulation to gain access to cybersecurity weaknesses. But opting out of some of these cookies may affect your browsing experience. For example, the research shows a clear appetite for transforming . Find out more in ESET's Cybersecurity Trends 2023: Securing Our Hybrid Lives report. This coverage typically includes your business's costs related to: Legal counsel to determine your notication and regulatory obligations. OEM manufacturers and developers must prioritize IoT security to secure vulnerable devices. Geopolitics And Hybrid Warfare: The reality of geopolitics and hybrid warfare has been redefined since the Russian conflict. Similarly, the number of insurers offering cyber insurance increased by about 35% between 2016 and 2019. Social engineering attacks have outpaced ransomware ones this year, fuelled by the global shift to hybrid working. Ransomware losses have dropped in the past few months, but they have increased in severity. In particular the loss-exposed sectors require proper risk coverage: healthcare, services, retail, the manufacturing sector, government institutions including the education sector, as well as financial services providers. Munich Re continues to offer capacity, and our goal as market leader is clear: to jointly develop innovative, datacentric cyber solutions with our clients and partners. For example, Hiscox, a leading cyber carrier, showed $1.8 billion in cyber losses in 2019, which was up 50% from the prior year. As we look ahead, these are the top five trends we anticipate seeing in 2022. Those agencies that can differentiate themselves in the evolving cyber market stand to reap the rewards for years to come. Cyber Insurance trends: pressures, perplexity and precaution The UK and US cyber insurance market is rife with complexity. Our offering increases our insureds resilience and improves the protection of digital business models. Prioritized security measures, such as changing default passwords, prevent threats like Mirai malware. Supply Chain Security: This is the management of potential risks in the entire supply chain, including external suppliers, logistics and technology. Its a positive sign shining light into a tumultuous market, which in 2023 will continue to face capacity challenges driven by increased demand, two-plus years of significant premium increases, more judicious limits deployment, and the exit of some players from the market, according to Steve Robinson (pictured), area president and national cyber practice leader for RPS. Use of multi-factor authentication. targeted attacks on particularly lucrative extortion targets like pipelines, is not the only risk and that attacks on smaller and medium-sized government service providers or companies are also possible. Criminal extortion in cyberspace is becoming ever more professional and complex and is often carried out by agile, coordinated criminal networks. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. But such measures could have immense bearing on public entities, which are amongthe least prepared for cyberattacks. Demand for cyber insurance is currently growing more steadily than the capacity on offer. Thecyber insurance market is still evolving, but according to Robinson, whats clear is that insurance providers can no longer be an organizations only risk management strategy. Systemic risks and accumulation scenarios require a clearly defined risk appetite, in order for innovative and sustainable protection to be offered to insureds. The objective will be to refine risk profiles, anticipate and classify trends and learn from claims data. Carriers have basically raised the bar for entry for cyber insurance, increasing the information security requirements for organizations to qualify, Robinson toldInsurance Business. As the three previous trends discussed how certain aspects of the cybersecurity industry will continue to grow in 2023, expect the same from the cyber insurance market. In order for the market to remain viable and sustainable, these are necessary changes that need to happen. The problem is that they need much more information than is currently available to them, something akin to the wealth of empirical data health and car insurers can benchmark against (see Top Cybercrime Predictions for 2023). GIPS is a registered trademark owned by CFA Institute. Cyber insurance is particularly attractive to small and medium-sized organizations that don't have the means to self-insure and are not confident that their security is likely to withstand attack. Member of the Munich Re Board of Management. 11. However, as we reported last year, the cyber insurance . Cybersecurity insurance claims are increasing. New Technologies and Devices. Digital Life Insurance. They will make endorsements around the vulnerabilities scanned, and if not addressed, these could impact an organizations coverage. For the majority of its relatively short life, the cyber insurance market saw rapid expansion and nimbly evolved to meet changing cyber threats. As a result, businesses are turning to cyber-insurance for business continuity. Turtlefin acquired Bengaluru-based SaaS insurtech Last Decimal, Former insurance executive indicted for $2bn fraud scheme to deceive state Regulators, Insurtech Veridion secured $6mn to deepen AI comprehension of the business landscape, 2023 U.S. But what is good cyber health anyway? Whereas in the past it was not uncommon for a midsize firm to have $10 million in coverage, that same firm today is likely only being offered $5 million or less by most carriers. Cyber insurance trends to watch in 2023 Cyberattacks are becoming more sophisticated, but so are insurers. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 3 Cyber Insurance Trends That Agents Need to Know for 2023. Cyber Espionage: Cyber espionage refers to unauthorized access of sensitive data or IP for economic, competitive or political gain through cyberattacks. CIS thought leaders identify cybersecurity trends the world might expect in 2021. And for some, coverage will simply become unattainable. Munich Re experts assume that three factors in particular will characterise the threat landscape in 2022: ransomware, supply chain and critical infrastructures. The complexities that are associated with cybersecurity and the growing cyber threat are outstripping the abilities of most organizations. Dean Mechlowitz and Bill Haber are the founders of TEKRiSQ, a technology company in Ponte Vedra Beach, Florida. For example, ransomware programs can be rented on the dark web for US$ 40 a month. Insurers are also leaning on supplemental applications related to firms history with ransomware and high-profile cyber breaches as an attempt to piece together firms inherent risk. Many large enterprises do what it takes to bring their level of risk down to a level they can live with and afford. Gartner predicts that by 2024, organizations adopting a cybersecurity mesh architecture will reduce the financial impact of individual security incidents by an average of 90%. They should also educate employees on identifying risks and cybersecurity practices, as well as maintaining strong password hygiene. She offers any number of insights, including that those constant rate rises are likely a . In current data compliance dominated economies, the legal complexities . How IoT Technology is Reshaping Insurance Business? . By acting as a black box within businesses, they can enable the notion of cyber health to be viewed on a more empirical basis than before. Combined with improved cybersecurity practices within organizations, this has led to rate stabilization in the marketplace. Phishing uses fake websites to obtain personal information. Munich Re budgets for particularly critical digital dependencies, e.g. In 2023, CaaS continues to pose a threat, requiring organizations to prioritize defense through employee training, threat intelligence and incident response solutions. Cyber insurance buyers enjoyed expanding coverage terms, plentiful capacity and flat to falling rates in a highly competitive marketplace. The Cyber Insurance market was. Today, companies are more aware of their cyber risk and are looking at the insurance market to mitigate that risk. Demand for cyber insurance has grown greatly in recent years. In 2021 alone, the Conti group of hackers the most lucrative service provider extorted or earned at least US$ 180m from victims (Chainalysis). Global supply chains and industry sectors that typically make extensive use of software and hardware from various providers are among those particularly exposed. Also referred to as cyber risk insurance or cybersecurity insurance . Specifically, if firms are determined to be of high risk, insurers are less likely to offer them a higher coverage limit or coverage altogether. Compared with the previous year, thesurvey shows that cyber insurance is becoming increasingly popular. Risk Placement Services (RPS) says that insurance carriers have adapted to underwriting cyber risks even as threat actors raise or change their tactics. When attacks strike, insurers call on IR experts to verify whether the client legitimately had all the protective measures in place they said they did when applying for coverage. Carriers are enhancing risk engineering and risk management capabilities. Meanwhile, victims and their insurers scramble to try to stay one step ahead of the bad guys, as rates rise - then rise some more. Cybersecurity Skills Shortage: The evolving threat landscape is leading to a shortage of cybersecurity professionals, with an estimated gap of 3.5 million globally. Read more eBook As a result, it has not been uncommon for firms to experience a 100-300% increase in premiums. Insurers offer protection and thereby support the productivity and capabilities of insureds. The U.S. market value for embedded insurance was $5 billion in 2020 and is projected to rise to more than $70 billion in 2025. Munich Re significantly contributes to a sustainable market, which is essential for our clients. Nobody wants to pay the ransom. However, trends at the end of 2022 suggest that there . The economics of cyber insurance Laying the baseline for emerging trends in the cyber insurance market, Schein said the cost of insured cyber attacks grew by 22% in 2020 and 77% in 2021, but rates for cyber insurance grew much faster. Cyber Hygiene: Cyber hygiene is the practice of keeping computer systems and devices secure. By contrast, a standard business impact assessment can set a business back many thousands of pounds, putting them out of pocket before they can get any true value for their money. Amid changes in the threat landscape, bans on ransomware payments and other cyber-related laws could crop up across the US. For insurers, a single attack can trigger losses with a great many insureds. The global cybersecurity as a service (CSaaS) market is expected to register a CAGR of 12.6% in the forecast period (2021 - 2026). While ransomware attacks get the biggest headlines, most cyberattacks occur because of a simple phishing campaign where an employee clicks a bad link or sends proprietary information. This is why, for example, insurers are treading with trepidation around building reputational damage into business and cyber packages. Certain classes exceeding 400%. Munich Re expects the global cyber insurance market to reach a value of approximately USD $20bn by the year 2025. At the same time, cyber-insurance policy providers are indicating that current approaches won't be sustainable forever. 9. As the practice proliferates, its not only individual businesses, but also the wider industry which is set to reap the rewards in 2023 and beyond. Dont worry about the news anymore, through our newsletter youll receive weekly access to what is happening. Augmented Reality/Virtual Reality (AR/VR) Security: As AR/VR usage increases, securing these technologies and the data they handle must be a priority to prevent the hacking and theft of sensitive information like credit card data and passwords through subtle facial movements recorded during speech.