Cyber Insurance
The cyber market is expected to shift gears in 2024 as premiums, risk and ransomware are all forecasted to be on the rise.
Although cyber insurance premiums fell in 2023, analysts forecast that cyber insurance premiums will “increase slightly” in 2024.
Ransomware is also on the rebound after a lull in 2022, with 2023 attacks rising back to 2021 levels, the highest year of ransom claims on record, according to analysts. The costs of these attacks also rose, as a smaller number of companies paid ransoms that were “dramatically higher”.
Companies and entities are also facing increased regulation, such as the requirement from the U.S. Securities and Exchange Commission to disclose material incidents within four days of discovery-- a dramatic shift for those required to comply.
States are also increasingly governing privacy, with 13 states having statutes such as the California Privacy Rights Act of 2020.
Allison, still many companies are not carrying cyber insurance. An incident in this area can bankrupt a smallor medium size business.