Cyber-attacks are increasingly more sophisticated and costly. As a result, cyber insurance is becoming a requirement for many businesses and helps reduce the risk of business-critical damage when a cyber-attack occurs.
The rise in remote work spurred by the pandemic has created a 67% increase in the frequency of cyber-attacks. The costs of cyber-attacks add up quickly between attorney fees, costs of forensics and third-party security tools, as well as notification costs. The pandemic has also accelerated the rate of digitalization; rarely-targeted sectors have become some of the most targeted industries. The rapid increase in demand for cybersecurity providers has opened more jobs than people to fill them. With this increase, there's been a rise in media coverage, causing an increase in the number and size of cyber insurance policies purchased.