RIMS report spotlights cyber insurance
Organisations considering stand-alone cyber coverage should carefully evaluate their risk profile and determine whether more traditional policies provide adequate coverage.
That is among the tips offered in a new RIMS Professional Report titled, Cyber Insurance: Considerations for Businesses.
More businesses are buying stand-alone cyberinsurance. According to the 2016 RIMS Cyber Survey, 80 per cent of respondents said they had bought such insurance, a rise of 29 per cent on 2015.
The average cost of a cyberbreach is $4 million, up 29 per cent since 2013, according to Ponemon's 2016 Cost of Data Breach study.
Some organisations are seeking stand-alone coverage due to contractual requirements imposed by business partners. In the RIMS survey, a quarter of respondents reported that their organisations purchased cyberinsurance as a result of contractual obligations, that was up from 17 per cent in 2015.
The new report is authored by Teri Cotton Santos, a member of RIMS external affairs committee and senior vice-president, chief compliance and risk officer at The Warranty Group. It explores the potential for traditional policies to cover cyber events, as well as first-party coverages, third-party coverages and additional needs.
Additionally, the report provides a series of potential cyberinsurance nuances that risk professionals must consider.
“Insurance providers are challenged with trying to keep pace with the evolving cyber landscape and develop products that help clients protect their organisations,” said Ms Cotton Santos.
“Working closely with your broker can help insureds purchase coverage that addresses key risks to the organisation that can result from a cyber event.”
RIMS Professional Report Cyber Insurance: Considerations for Businesses is available in RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge