With each passing day, it seems as if there is a new type of insurance policy created to protect people and businesses alike. Many credit managers, for example, are already familiar with credit insurance, designed to ensure creditors are covered if a customer doesn't fulfill their debt. Published on Nov. 19, a Financial Times (FT) article explores the importance of yet another insurance policy that may come in handy amid the growing reports of cybersecurity threats in business-to-business credit.
Described as "one of the fastest growing parts of the insurance industry," FT reported, cyber insurance is predicted to reach into the billions when 2022 comes to a close, specifically $7.5 billion. Small- to medium-sized businesses (SMBs) are said to be a significant contributor to this growth as some companies with minimal resources are more prone to cyberattacks. Premiums currently rest around $6 billion; however, RBC Capital Markets anticipates it will reach $15 billion in the next two years.
"We are seeing more and more take-up, particularly in industries where we see a data breach risk such as retailers, health care, anyone dealing with data analytics and companies that work with big, global firms," said Sarah Stephens, the cyber, media and technology practice leader at insurance broker Marsh JLT Specialty.
In addition to replenishing stolen funds, FT states, cyber insurance also assists companies after they've been attacked, including help from forensic investigators, public relations experts and negotiators.
—Andrew Michaels, editorial associate