Data has shown that corporations are increasingly becoming a target of cyber criminals and costs are expected to rise and reach $10. 5 trillion annually by 2025, says Cybersecurity Ventures. CIOs currently estimate that their organisations’ average annual global loss at $9 billion, which has risen from $3 trillion in 2015 a trend that indicates the growing prevalence and complexity of cyber threats across the globe.
Major breaches in the recent past include the Equifax breach in 2017 where information of about 150 million customers was compromised and the damage that businesses stand to suffer. From the breach, the firm incurred more than $1 billion in penalties, which is why cybersecurity cannot be overemphasized.
Evaa Saiwal, Business Head – Liability, Cyber & Financial Risk at Policybazaar stresses on relevancy of cyber insurance. Looking at the growing instances of cyber threats she stated that cyber insurance is not anymore an option but a basic requirement. Cyber insurance helps in post-breach activities and post-modification expenses that a company has to bear due to cyber threats like data losses, ransomware, and others. It also includes an immediate attendance upon such professionals such as forensic analysts, lawyers, and public relations specialists.
This paper seeks to discuss the current changes that are evidenced by increased employment of state actors in cyber attacks incidents and narrow down the parameter of vulnerability to small business organisations. , speaking with TATA AIG General Insurance, the National Head – Financial Lines, Najm Bilgrami, stated it is important that companies do not delay once a breach has occurred. cyber insurance can be very useful in averting the effects and easing the process of restoration.
Consequently, due to the constant growth of the threats connected with cybercrime, the absence of complex cyber insurance for the protection of money and reputation is inadmissible.