• Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Special Offers
Business Intelligence Info
  • Business Intelligence
    • BI News and Info
    • Big Data
    • Mobile and Cloud
    • Self-Service BI
  • CRM
    • CRM News and Info
    • InfusionSoft
    • Microsoft Dynamics CRM
    • NetSuite
    • OnContact
    • Salesforce
    • Workbooks
  • Data Mining
    • Pentaho
    • Sisense
    • Tableau
    • TIBCO Spotfire
  • Data Warehousing
    • DWH News and Info
    • IBM DB2
    • Microsoft SQL Server
    • Oracle
    • Teradata
  • Predictive Analytics
    • FICO
    • KNIME
    • Mathematica
    • Matlab
    • Minitab
    • RapidMiner
    • Revolution
    • SAP
    • SAS/SPSS
  • Humor

Cybersecurity Insurance – 3 Reasons Businesses Aren’t Buying

June 27, 2017   FICO

We recently commissioned a study from independent research company Ovum on how organizations are tackling cybersecurity and what they plan to do next. Losses because of a data breach or other cyberattack can be severe, particularly when factors such as customer and shareholder confidence are taken into account. We therefore expected that cyber risk insurance would be an increasingly important way in which organizations are mitigating their risk.

The results were far from uniform:

  • The UK was the most insured country we surveyed, with 69% of respondents holding some kind of insurance, and the USA was the least insured – only 51% of US respondents had any kind of cyber risk insurance.
  • Across the industries surveyed, financial services firms were the most likely to be insured (71%), and healthcare the least likely (26 percent).
  • Even when businesses have invested in cyber risk insurance, it’s unlikely to cover them for all likely risks.

Cyber survey chart 5 Cybersecurity Insurance – 3 Reasons Businesses Aren’t Buying

We dug a little deeper into the attitudes of our respondents to try to uncover why under insurance might occur. Three explanation emerged – each is playing a part:

    1. They have limited investment in cybersecurity. 60% of those interviewed have seen an increase in attacks in the past year and 62% expect the overall level of threat from cyber-attacks and data breaches to increase in the coming year. Many respondents are also facing more consequences should they lose customer data, with legislation such as General Data Protection Regulation (GDPR) massively increases the fines that can be imposed. Even so, less than half (48%) expect spending on cybersecurity to increase in the coming year. While it is encouraging to see 23% are looking to invest in cyber-risk insurance, the pressure on finances may mean that they actually can’t afford to do this – or they can only take out insurance to cover the most obvious threats.
    2. They think it won’t happen to them. We asked respondents how cyber-ready they thought their business was compared to their competitors. 60% think they are above average or top performers, while only 6% think they are below average – this is statistically unlikely. With an unrealistic view on how well they are doing, it’s probable that they don’t appreciate their true risk and therefore don’t see the need for comprehensive insurance cover. It seems that many don’t have the ability to make objective judgements about their cybersecurity risk. This becomes evident when we look at how they benchmark their cybersecurity status; 38% use their own benchmarks and criteria and 6% don’t carry out measurable assessments.
    3. They are unclear on how premiums are set. Businesses that invest in cybersecurity want to understand what they are paying for and the value it delivers. For cyber risk insurance, this means not only understanding what the policy covers but also having confidence that the premiums charged accurately reflect risk. Only 23% believe that pricing from insurance companies is clear and transparent. 23% believe the insurance assessment for their business isn’t accurate, 19% say their premiums are based just on industry averages and 5% don’t understand how their business is assessed for cyber risk insurance.

Risk Measure Is Key to Cybersecurity Insurance

Ultimately, the part cyber risk insurance can play is dependent on a measurement of risk that both the insurer and insured can agree on. In this way businesses, are less likely to over-estimate their cyber-readiness and can build a trusted relationship with insurers based on a common understanding of the cover they need.

We have developed the FICO Enterprise Security Score to help businesses objectively assess their own cybersecurity status, as well as that of third parties. FICO Enterprise Security Score accesses billions of external data points at internet scale, and compares the subject’s cybersecurity posture to the pre-breach status of known attacks. Applying our analytics to this data gives an empirically derived score, so that:

  • Businesses have an objective measure of their cybersecurity status.
  • Insurers can score organizations to determine risk and set fair and competitive premiums.
  • Insurers can understand the risk across their customer portfolio.

The transparency offered by a score like this can help businesses make a more well-informed decision about whether to take out cyber risk insurance — and make sure they’re getting the best deal.

You can see more results of our survey with Ovum on our cybersecurity survey page, and learn about new principles for cyber risk ratings.

Let’s block ads! (Why?)

FICO

aren't, Businesses, buying, Cybersecurity, Insurance, reasons
  • Recent Posts

    • Accelerate Your Data Strategies and Investments to Stay Competitive in the Banking Sector
    • SQL Server Security – Fixed server and database roles
    • Teradata Named a Leader in Cloud Data Warehouse Evaluation by Independent Research Firm
    • Derivative of a norm
    • TODAY’S OPEN THREAD
  • Categories

  • Archives

    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • November 2016
    • October 2016
    • September 2016
    • August 2016
    • July 2016
    • June 2016
    • May 2016
    • April 2016
    • March 2016
    • February 2016
    • January 2016
    • December 2015
    • November 2015
    • October 2015
    • September 2015
    • August 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
    • December 2014
    • November 2014
© 2021 Business Intelligence Info
Power BI Training | G Com Solutions Limited