Cyber insurance: Demand is surging but due diligence is missing
Source: Middle East Insurance Review | Oct 2023
A significant gap continues to grow between insurance providers and organisations seeking affordable and comprehensive cyber insurance coverage according to a new study.
The new report 2023 State of Cyber Insurance published by Delinea in August 2023 has found that the demand for cyber insurance has grown while insurance companies have tightened the reigns to reduce their exposure.
The report said that the time and effort to obtain cyber insurance is increasing significantly, with the number of companies requiring six months or more to get insured has ballooned from the report’s 2022 edition.
While the 2022 survey found only one organisation that took longer than six months to obtain or renew cyber insurance, in 2023 the study team found more than 20 such organisations.
The 2023 study included 300 participating organisations and those that used their cyber insurance more than once increased to 47%. Over two thirds of the participating organisations said their insurance rates increased by 50%-100% upon application or renewal.
Delinea said another point of concern is the fact that most organisations are approaching cyber insurance without proper diligence and evaluation of their actual requirement. They simply look for a cyber insurance cover. The organisations are not assessing whether their previous policy needs to be amended or should continue as in the previous years.
This is leading to a worrying and crucial gap cyber insurance gap that could put a lot of cyber insurance policyholders in a tough position if and when an incident occurs and they want to utilise the cover. M