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What to Expect at Your Next Cyber Insurance Renewal

What to Expect at Your Next Cyber Insurance Renewal

Posted by ASCEND TECHNICAL TEAM on 8/1/22 7:30 AM

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When applying for cybersecurity insurance this year, many organizations were surprised by new protocols during the security interview. What is causing this, and what are some of the new changes to cyber insurance renewals to be on the lookout for? Here's what we've found.

 

Rising Cybersecurity Incidents

After the COVID-19 pandemic began, organizations have seen an increase in cyberattacks due to the exposure of remote workers, security landscape changes, and more. When compared to 2019, experts saw a sharp rise in the number of incidents.

 

For cyber insurance providers, this was a heavy hit. They received thousands more claims than expected, and due to this rise in attacks, they have since ramped up their requirements for coverage.

Businesses that were safely covered last year are having trouble qualifying today. Additionally, coverage costs are going up. The average cost of cyber insurance increased by 35% in 2021.

 

What Surprised Companies When Reapplying

 

Difficulty in completing applications

Questions were more specific. For example, one provider asked: “What specifically did your organization do to counter the Exchange Hafnium breach in March 2021?”

While many organizations are accustomed to these questions during compliance reviews, they may be surprised to hear them during insurance renewal.

Expectations regarding an organization’s security maturity

For years, experts have been stressing the importance of assumed breach. Because of this, insurance providers are now putting a stronger emphasis on post-breach systems. One provider asked: “What tools and processes are in place to detect a Business Email Compromise?”

Pricing

Many organizations that did qualify were surprised to see that their rate had gone up. Higher expectations from insurance providers caused
some insurance rates to increase.

 

How can you prepare?

Try to have your cybersecurity basics covered, reported on, and ready to demonstrate when preparing for a renewal. Some of the most common asks or requirements will likely be centered around the following protections:

Watch Cyber Insurance Panel on Demand

 

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Posted in Cybersecurity Tips & Best Practices