Over the past few years, working from home has become more commonplace across industries. In fact, 12% of Americans work remotely full-time, and 28% work hybridly. While many businesses benefit from the increased productivity and the wider talent pool that remote work offers, remote work has also led to a spike in cyberattacks. One study discovered that 67% of all cyberattacks that negatively impacted a business in some way targeted employees who work remotely. With numbers like that, it’s clear how important investing in cybersecurity insurance is.
Despite this pressing need, many companies surrender their cyber insurance because of high costs or don’t invest in it in the first place because of the challenges of getting it. It doesn’t have to be difficult, though; it just takes some strategizing. If you are an insurance provider, Trava Security has created this blog so that you can guide your clients through the common pitfalls of obtaining cyber insurance. With our advice, the future of cyber insurance for your clients is bright.
Why Do People Need Cyber Insurance?
People need cyber insurance because the number of cyber attacks every year is on the rise. Remote and hybrid work create more risk for companies because certain in-person security measures commonly employed, such as firewalls, don’t work on private networks. This lack of protection leaves many companies vulnerable to attack, so they need cyber insurance to mitigate some of the financial loss from these attacks.
Other reasons that companies should invest in cyber insurance include:
Cyber attacks are increasingly complex. Every day, bad actors are coming up with new ways to attack digital systems. While having cybersecurity measures in place can defend against some of these attacks, they typically don’t protect against all of them. Your clients need cyber insurance to lessen the blow from these unexpected attacks.
Some industries have higher cybersecurity regulations. These industries are those that handle a lot of sensitive customer information and include the healthcare, technology, government, and hospitality industries. Cyber insurance is beneficial for these industries because they’re at a higher risk of attack and may face more severe penalties should one occur.
Cyber attacks are costly. For example, the average breach cost for businesses with fewer than 500 employees is $2.98 million. Having cyber insurance allows businesses to recover from attacks quicker and with less loss than those without it.
While the need for cyber insurance is high, cyber insurance trends suggest that insurance companies have made it much more difficult for companies to qualify for a policy, deterring many companies from applying for one.
Why Is It Difficult to Get Cyber Insurance?
Several factors make it difficult to get cyber insurance, including demand, premium prices, and difficult application processes. Let’s take a closer look at each of these.
The high demand for cyber insurance. As the number of cyber attacks increase, so, too, does the demand for cyber insurance. Because cyber insurance is in such high demand, cyber insurance companies have tightened their requirements for qualifying. Cyber attacks are costly, after all, and they want to ensure that companies are doing everything in their power to protect against these attacks before they occur.
A cyber insurance premiums increase. Why are cyber premiums increasing? Because of the high demand for cyber insurance as well as the increased risk to providers that cyber insurance can pose. In just one quarter, insurance premiums increased by an average of 28%. To put that number into perspective, the average premium cost for small or mid-sized companies with good security measures in place and low risk is $1,400-$3,000 per million of their limit.
The application process is difficult. Many insurance companies require that businesses fill out pages worth of PDFs to apply for cyber insurance. With all of the time and back and forth that this type of application requires, some information may be incorrect or incomplete. This can deter many businesses from completing the application and leaves providers without that source of income.
As an insurance provider, you’ll find it lucrative to sell cyber insurance policies (if you can show your clients the value of such policies). To create a win-win situation for both you and your client—where you make a profit and your client receives the coverage they need—turn to Trava Security.
Stand Out from the Rest of the Cybersecurity Insurance Industry With Trava Security
As an insurance provider, you can work with Trava Security to create an extensive cyber risk management program for your clients. With our assistance, your clients can rest easy knowing that they have protection 24/7, and you will attract and retain more clients. With us by your side, you can offer cyber insurance policies with lower premiums as well as additional protection that comes with the policy. We will even streamline the application and renewal processes to relieve the time and effort that those typically take.
To learn more about how working with Trava Security can skyrocket your insurance company above your competition, check out our website.