Continued and sustained cyberattacks are having a ruinous effect on enterprises and driving up the cost of incident response. With over 900 million reported records exposed in 2014, more companies are seriously starting to consider transferring risks to insurance providers.
Despite growing awareness of vulnerability to breaches and risk management strategies however, less than 20% of large enterprises avail themselves of cyber insurance. For small- and medium-sized enterprises, the percentage is even lower, at less than 6%, according to ABI Research.
The largest barrier to growth is lack of actuarial data about cyberattacks, but this is quickly changing with continued cyber assaults. Currently, insurers are finding it difficult to assign the proper value to data or systems, or to determine appropriate policies since they are unable to scope the cyber risk environment of an organization.
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