The cost of cyber insurance is stabilising, according to a recent report from insurance firm Howden, even though the number of ransomware attacks are rising. Howden’s annual report found that insurance premiums have been dropping in the past year, presenting positive signs that the companies are becoming more adept in curbing their losses from cybercrime. […]
The cost of cyber insurance is stabilising, according to a recent report from insurance firm Howden, even though the number of ransomware attacks are rising.
Howden’s annual report found that insurance premiums have been dropping in the past year, presenting positive signs that the companies are becoming more adept in curbing their losses from cybercrime.
The easing in cost comes after a rocket in cyber insurance premiums over the Covid-19 pandemic (2021-2022), due to increased cyber incidents.
However, as firms have bolstered their security further, such as adding multifactor authentication, insurance claims have become less common, the report claims.
“MFA is the most basic thing you can do, it’s like locking the door when you leave the house,” said Sarah Neild, head of UK cyber retail at Howden,
A mix of: increased attacks, heightened geopolitical instability, and the proliferation of GenAI, alongside easing cyber security costs is something that the market has never experienced, added Neild.
“The foundations for a mature cyber market, with innovation and exposure-led growth at its core, are now in place,” she said.
According to the report, price decreases are also due to a greater appetite by insurers to offer cyber insurance.
“Cyber insurance is key to strengthening resilience around the world and insurers are now in a strong position to bring about real change,” said Jean Bayon de La Tour, head of cyber, international, at Howden.
“This involves providing more capacity to meet pent-up demand in currently underpenetrated groins, including Europe, Latin America and Asia,” Bayon de La Tour continued.
