An Arctic Wolf Report
The Cyber Insurance Outlook:How coverage is evolving with the current cyber threat landscape.
Arctic Wolf 2023 Cyber Insurance Outlook Report
How Many Companies Have Cyber Insurance Coverage?
While adoption is increasing rapidly, we’re still in the early days of cyber insurance adoption. More companies are expected to follow suit as they recognize the jeopardy they put themselves in by not being insured.
(How many companies have cyber insurance coverage according to respondents of the Arctic Wolf 2023 Cyber Cyber Insurance Outlook Report)
"With the average cost of a data breach in 2023 totaling $4.45 million, more businesses now recognize they put themselves in serious jeopardy by skipping out on insurance. Foregoing insurance might once have been a tenable stance, but the severity of today’s cyber threat landscape has made such a position much less palatable in the last two years."
- Arctic Wolf 2023 Cyber Insurance Outlook ReportThe State of Premiums
The past few years have seen insurance companies rightsizing their terms and raising the level of protection expected for organizations to obtain a policy. Cyber insurers have become much more selective about their coverage plans, having witnessed huge loss ratios in the last few years from cyber attacks that affected both clients and third-party customers.
77% of Policy Holders:
saw some level of increase in their premiums from year to year
77%
Saw Increase in Premiums
37% of Those Policy Holders:
saw at least a 10% increase in their premium
37%
Saw 10% Increase
64% of Respondents:
say they upgraded their insurance coverage in the last 12 months
64%
Upgraded Insurance Coverage
“When we are properly investing in security controls, we’re able to bring down the cost because we’re able to demonstrate to carriers what’s effective and what works, reducing the severity and impact of those risk — meaning more fender-benders and fewer totals."
- - - - - - Kirsten Bay CEO of CysuranceWhat Products Are Organizations Missing to Meet Cyber Insurance Requirements?
Plan Ahead When Seeking a Cyber Insurance Policy
39% of organizations stated it took between 30-90 days (about 3 months) of preparation to obtain a policy
30 Days
90 Days
The changes to the cyber insurance market have created multiple obstacles for new policy seekers, which can obstruct the evaluation and application journey.
Leaders need to start internal work early, identifying gaps in policy requirements, assigning individuals across the organization to focus on the process, outlining goals and minimum coverage requirements, setting proper expectations and, when needed, working with a broker who has expertise in the area.
Solutions Impacting Cyber Insurance Premiums for Current Policy Holders
(Percent Required to Add Service)
67%
64%
64%
65%
Some organizations might be tempted to avoid the challenges of obtaining and maintaining cyber insurance altogether, instead opting for IR retainers.
The more an organization can work closely across functions to support cyber risk management and these best practices, it will make organizations more secure and the procurement process more efficient. Customers must demonstrate they’re taking security seriously in order to qualify for coverage or see their annual premiums lowered.
Just Released
The Cyber Insurance Outlook:
How Coverage Is Evolving With the Current Cyber Threat Landscape
Additional Resources For
Security Leaders
Survey says… cybersecurity continues to evolve at a rapid pace.
In a time of new sophisticated technologies, emerging threats, and a growing attack landscape, it’s never been more important to ensure your organization’s security.
Arctic Wolf is a market leader in security operations. We can help close the gaps in your cybersecurity defences, manage your risks, and provide customized compliance reporting. Ready to learn more?