The New Fast and Furious: Cyber Insurance Market Growth
Author: Carolina Martinez, Versasec Americas
A recent Crunchbase article showcased a San Francisco-based insurance company that had closed a new funding round after having doubled its worth in just six months. We’re not talking small numbers, either. The funding round was worth $205 million, and the company valuation was $3.5 billion.
Why do we find this fascinating? Because the company credits its rapid growth to its main product offering: cyber insurance.
Cyber insurance is in high demand for a variety of reasons: well publicized hacks and ransomware attacks, market factors including consolidation in the insurance space, and because of the potential for government and corporate mandates that their contractors and subcontractors have cyber insurance. Many insurers had already been offering discounts for their customers who use multi-factor authentication to help thwart hackers (we blogged about that in June), so offering cyber insurance as an additional insurance product simply makes good business sense.
We wanted to close this year’s Cybersecurity Awareness Month by bringing to the spotlight this hot topic. We hope you stay with us for part 2 and part 3 of our blog as we explore what companies should take into account when shopping for cyber insurance providers and what is above all the most important action to take.
Cybercrime risk differs greatly from that of, say, the risk of water, wind, or earthquake damage. Traditionally labeled “acts of God” events are a far cry from a malicious human plotting about stealing and then potentially ransoming or selling data or using it for other nefarious purposes. Moreover, hackers are always looking for ways to outsmart the systems designed to stop them. That’s why even companies without cyber insurance should be using the best technology to stop unauthorized access into their systems, such as hardware-based public key infrastructure (PKI) technology and identity and access management (IAM) solutions.
Want to know more about PKI and IAM? Talk with a Versasec expert by clicking the CHAT button at the top of the page.