Why Is Cyber Insurance So Hard to Get and What to Do About It? - Tecbound Technology

Why Is Cyber Insurance So Hard to Get and What to Do About It?

Today, organizations of all sizes find that obtaining and maintaining cyber liability coverage has become increasingly costly, complex, and confusing. Premiums skyrocketed by over 50% in 2022, following 73% premium growth in the prior year. Moreover, experts predict a 25 to 100% increase in cyber insurance premiums in 2023. At the same time, the policy coverage limits are shrinking while the incident recovery costs continue to grow.

  • Obtaining cyber insurance can be frustrating:

Organizations are increasingly frustrated by the stringent qualification process, with an ever-expanding amount of application paperwork and hundreds of questions to answer. As part of intense underwriting scrutiny, cyber insurance companies require applicants to adhere to specific cybersecurity frameworks and have controls and audits in place to assure compliance. As a result, the application and approval process is taking much longer than before.

The likelihood of a cyberattack occurring at some point makes a cyber liability policy an absolute necessity. However, organizations’ protections greatly influence their ability to purchase and maintain cyber insurance coverage.

  • Multiple security tools are often required:

Most cyber insurance policies today require endpoint detection and response, managed detection and response (i.e., Managed SOC), and security awareness training services in place, in addition to other commercially reasonable security tools, such as antivirus and firewalls.

Because organizations need multiple security tools to qualify for cyber insurance, IT teams must work with various vendors to procure all necessary solutions. We are dealing with numerous bills, support teams, release schedules, and other hassles of having multiple vendors, resulting in “vendor fatigue,” wasted time, and higher costs.

At Kaseya, we address these considerable challenges in two ways. First, we offer multiple cybersecurity solutions that cover all vulnerability areas and are technically and commercially integrated. This ensures comprehensive protection, streamlines your IT operations, eliminates vendor fatigue, and lowers your overall cybersecurity spend by as much as 30% compared to other vendors in the marketplace.

Source: ID Agent

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