Over the past decade, the percentage of risk managers purchasing cyber insurance at some level has risen from one-third to 78 percent. Expectations for such coverage include protection against contingent business interruption, system failure, and bricking. The latter is a situation where a cyberattack renders a device unusable. Other areas where coverage is sought are funds transfer fraud, reputational harm, and digital media liabilities.
The COVID-19 pandemic has amplified the demand for cyber insurance, with risk managers aware of links between remote work and increased cyber events. Some of the major concerns are employees accessing malware that unintentionally infects corporate networks and sensitive information being provided to third parties through social engineering. Various industries, such as banking, manufacturing, education, health care, and technology, are also seeking out robust cyber insurance solutions.
