80% of businesses lack adequate cyber insurance coverage.

68 views 12:16 am 0 Comments April 19, 2024

The study reveals significant gaps in cyber insurance coverage across various sectors. In low tech sectors such as accommodation, food services, construction, transportation, and warehousing, insurance coverage is relatively adequate, with maximum gaps of 100 percent.

However, sectors like finance, insurance, information, and manufacturing have coverage gaps exceeding 100 percent, highlighting the need for improved risk management. Nimrod Partush, vice president of data science at CYE, emphasizes that many organizations may not fully understand the potential cost of a cyber breach.

This lack of comprehension can lead to surprise when organizations realize that their cyber insurance only covers a small portion of the losses incurred. This trend in insurance coverage gaps has not seen a decline in recent years, indicating a gap in organizations’ ability to accurately quantify their risks and a gap in the willingness of cyber insurers to provide sufficient coverage.

Based on CYE’s extensive dataset, the report underlines the importance of accurate cyber risk management practices. It emphasizes the need for evolving strategies to mitigate financial risks in the face of a continuously evolving digital threat landscape.

Accurate risk assessment and optimized mitigation are identified as essential tools in protecting businesses against cyber threats, helping them navigate the digital age with confidence and security. While the journey towards comprehensive cyber risk coverage is complex, the report suggests that diligent analysis, strategic planning, and ongoing adaptation can help businesses safeguard their assets against the growing tide of digital threats.

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