The more personal information any operation uses to transact business — including details collected when accepting payment for services rendered — the more likely that business will be targeted by hackers looking to benefit from gaining access to private data. It follows that the industries most likely to pay relatively high premiums for cyber insurance, according to a recent AdvisorSmith survey of cyber insurers and costs, are those that run on transactional information. The slideshow above illustrates the dozen industries with the highest cyber insurance premiums, according to AdvisorSmith. Cyber premiums are largely determined by risk, Jeff Dunsavage with the Insurance Information institute wrote in a September 2021 blog post. He added that the prognosis for the cyber insurance market may be grim due to the "perfect storm" of risks including: |
- Rapid growth in exposure without adequate risk controls;
- Growing sophistication of cyber criminals;
- The cascading effects of cyber risks; and
- A lack of geographic or commercial boundaries.
"Insurers urgently need to reassess all aspects of their cyber risk," A.M. Best said in a June 2021 Best's Market Segment Report. Such assessments should include the carrier's risk appetite, risk controls, modeling, stress testing and pricing. See also: |
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Elana Ashanti Jefferson
Elana Ashanti Jefferson serves as ALM's PropertyCasualty360 Group Chief Editor. She is a veteran journalist and communications professional. Reach her by sending an e-mail to [email protected].
