Future Trends in Cybersecurity Risk Management
During the global COVID-19 pandemic, cybersecurity attacks are on the rise. With more employees working remotely and with the utilization of cloud technologies, companies must take an even more prudent role in preventing and mitigating cybersecurity threats. Looking ahead, we are seeing several cyber insurance trends that will continue well past 2020.
As more companies move to cloud-based applications, they now share the risk of security with their cloud services provider. Companies need to make sure their cybersecurity insurance covers services and data hosting that is outsourced to third-party vendors.
The rise of ransom attacks continues and often leave companies with no choice but to pay an exorbitant demand. As claims like these remain costly for insurers, policyholders may be required to have a prescribed backup plan to mitigate risks of data loss and prevent having to pay costly ransom demands.
As devices become more connected, the risk of cyberattacks on smart devices increases. Cyber insurance may now include property damage and bodily injury to mitigate the risk involved with the hacking of IoT devices such as self-driving cars and smart medical devices.
In the ever-evolving cybersecurity risk management landscape, both insurers and policyholders will have to work together to reduce exposure and mitigate risks associated with cyberattacks.