We have entered an era of incredible technological innovation. Unfortunately, the fast-paced technological innovation has given rise to cyber threats which have the potential to cause huge losses. As technology advances, cyber criminals are using more advanced and scalable tools to breach user privacy, and they are getting results.
As of now, there have been several high-profile cases of cybercrime that involve stolen data, such as personal data, health information and financial details. However, as the trends pinpoint, the future of cybercrime isn’t stolen data; it’s business compromise. Here’s why; eventually, when data breaches become widespread, the value of the breached data decreases dramatically, especially as organizations put in more controls to limit its use.
As the value of the stolen data diminishes, there’s bound to be a shift in the way how cyber crime operates. Hence, the critical data of individuals and businesses could be compromised to make money in a criminal way. Cyber-criminal activities such as intercepting automatic monthly bill payments, or finding a way to issue fraudulent gift cards will probably some of the most common cybercrimes in the future. However, most businesses are not equipped to deal with such cyber risks.
Hence, Cyber Insurance or Digital Insurance has become more important than ever. Here are three steps businesses and insurers can take to improve their cyber insurance capabilities: –
Refrain from trying to retrofit existing Cyber security products. Cybersecurity comes with its own set of unique considerations and requires insurers to build an offering that addresses them. The most common approach is retrofitting the existing products or base services on terrorism coverage. However, most businesses that do not acknowledge and account for the unique nature of cybercrime impede their ability to accurately assess and price cyber risk.
Collaborate with customers to shore up lines of defence and controls at different levels. No matter how advanced your cybersecurity systems are, breaches are inevitable. This means that customers and insurers need to tighten up controls and defences at multiple levels. Partnerships with cybersecurity firms can provide greater access to information that can help insurers better assess and price risk, and ongoing testing is important. Moreover, as mentioned earlier, the only way businesses and individuals can really vouch for security is by testing it, and most insurers aren’t testing their customers’ defences.
It’s important to take a closer look at cyber underwriting practices of businesses and any loopholes that will eventually catch up. In the short term, insurers can mitigate exposure by shifting to cyber as a standalone product or by tightening and standardizing vague policy language.
As the trends suggest, cybercrime is evolving with each passing year. In the next few years, one can surely expect to see a new wave of crime that will require greater vigilance and cybersecurity. Hence, looking forward, the best way to protect ourselves from cyber crime is by relying on Cyber Insurance Policy.