Insurance is not the dry and boring business that it once was. These days, there is so much data and information available to any insurance company that it is reasonable to assume that these companies will adapt to the prevailing trends of the time. This is particularly true of cyber insurance companies as they have to concern themselves with the ever-changing landscape of cyberspace. This is why you should stay on top of the latest trends related to the cyber insurance industry today.
The Federal Trade Commission, a branch of the United States Government, posts the following about how cyber insurance works:
Cyber insurance is one option that can help protect your business against losses resulting from a cyber attack. If you're thinking about cyber insurance, discuss with your insurance agent what policy would best ﬁt your company's needs, including whether you should go with ﬁrst-party coverage, third-party coverage, or both.
This is just one regulatory agency that keeps an eye on the cyber insurance industry. Their mission is to ensure that insurance companies are offering a product that provides the coverage that it promises to provide. Cyber insurance companies should be aware that regulatory agencies are keeping an eye on the practices performed by these companies.
There is little doubt within the security and technology industries that biometrics is the way of the future. It is an excellent way to provide a seamless transaction process for everyone engaging with any kind of commercial transaction. Few of the industries have engaged with biometric technologies the most out of the gate. These include the healthcare industry, the banking industry, and the payment processing industry. All of these industries have jumped at the opportunity to deploy biometrics.
In response to this, cyber insurance companies must consider the risk implications of biometrics and how they may need to adjust insurance policies given those potential risks. This is not to say that biometrics are guaranteed to be a net pro or a net con. Instead, they are merely another factor worthy of consideration when creating an insurance policy for a company in one of those industries. It is something that must be examined on a case-by-case basis.
Changes From Passwords to Identity Verification
Passwords were the best way to keep information and accounts secure online. Plenty of services use passwords as a primary means of security to protect accounts. However, there is also a lot of skepticism about the power of passwords in recent years as well. Instead of relying exclusively on passwords to protect accounts, many services have opted to favor identity verification as a means of securing accounts instead of relying exclusively on passwords to keep them safe.
Cyber insurance companies should consider checking that their policies protect companies that use identity verification over passwords. It might even be possible to reduce the insurance premiums of companies that use identity verification as their primary security system.
Remote Work and Security Branches
Millions of people work remotely at this point. They have left the office behind in favor of staying at home and getting all of their work done from there. This trend was already occurring before the COVID-19 pandemic, but it has skyrocketed since that time.
Remote work may be favored by many employees, but there are also heightened risks associated with cyberattacks. Hackers view remote work as the perfect place to attempt an attack because:
They have more access points to attempt to breach
Remote workers may not be properly trained on how to keep data secure
Sensitive data may be inadvertently in the hands of someone with minimal security measures
These reasons, and many more, make the remote work movement something that has opened the doors wide open for hackers to perform criminal acts. Cyber insurance companies must factor this into the policies that they write for customers.
Industry-Specific Cyber Security Issues
Every industry and business is unique. Cyber insurance companies should review each policy they create on a case-by-case basis. This is to better understand the kind of premiums that they ought to charge for these policies. Certain industries are more vulnerable, particularly those that have not historically had to worry about cybersecurity as much in the past. Also, any industry or business that primarily employs remote workers may be a heightened risk to the insurance company.
The best thing that a cyber insurance company can do is review the policies that it has created in the past. Also, make changes as necessary to tweak its future policies. Things are constantly changing, so stay on top of the trends as they continue to emerge.
Reach Out to Trava for the Latest Cyber Insurance Trends
We want to help you stay on top of the latest cyber insurance trends so that you can best understand where these trends are going to go next. Please reach out to Trava for the latest. Use the information we provide to make educated decisions about how to operate your business.