February 13, 2024 at 07:39AM
Fitch Ratings reports a 178% increase in cyber insurance premium costs from 2017 to 2022, with a 51% rise in 2022. As insurers adjust pricing and clients bolster cybersecurity measures, costs are expected to stabilize. Lloyd’s of London and Munich Re emphasize the need for stronger security measures, outlining twelve controls to mitigate risk and reduce premiums. Maintaining complete asset visibility is crucial, with 20% of assets currently invisible to CISOs. An investment in tools for real-time visibility can further reduce cyber insurance costs.
Key takeaways from the meeting notes are as follows:
1. Cyber insurance premium costs have increased significantly, with a 178% rise from 2017 to 2022, and a 51% year-over-year increase in 2022 alone. Insurers might deny coverage to high-risk organizations, or certain coverage may no longer be available, reflecting the rapidly evolving nature of the cyber insurance market.
2. Insurers are taking a more active and consultative role in guiding their customers’ risk management by providing security improvement recommendations.
3. Marsh McLennan Agency recommends twelve security controls to enhance cybersecurity strategies, with evidence of adoption and effective use potentially leading to lower cyber insurance costs.
4. Complete asset visibility across the network is crucial for effective risk management and security, as a substantial number of assets, such as virtual services, IoT and mobile devices, and operational technologies, may be invisible to the Chief Information Security Officer (CISO). A 13th control, complete IT asset visibility, is suggested for inclusion in cybersecurity strategies.
5. Investing in tools that enable real-time asset visibility across the network is essential for maximizing security, minimizing risk, and potentially reducing cyber insurance premiums.
Overall, the evolving cyber insurance landscape demands organizations to adapt and enhance their cybersecurity strategies to effectively mitigate risks and potentially lower insurance costs.