Cyberinsurance Is On The Rise
Did you know that cyberattacks cost the world more than natural disasters? Seems crazy, right? Well in 2015 cybercrime costs exceeded over $3 trillion US dollars. If the same trend continues, it will rise to over $6 trillion by 2021. Most people and businesses have insurance for their cars, homes, and personal belongings… yet most of those people do not carry any form of protection against the rising cybercrime threat. In 2016 insurance premium spending was at $2.7 trillion in 2016, and only 0.09 percent of that 2016 total spending was focused on insurance against cyber attacks and hacking.
The large majority of cyberinsurance policy holders are the companies that tend to rely heavily on computerized data. But what about cyberinsurance for the common household? While the average person is less likely to carry such insurance, it is becoming more widely available to purchase. Insurers such as Munich Re, AIG’s CyberEdge, Saga Home Insurance, Burns & Wilcox, and Chubb all offer personal cyberinsurance for individuals as an add-on to their existing homeowner and/or renters’ insurance policy.
Most insurance plans include coverage on repair and or replacement of any damaged devices, consulting fees, and some also include data recovery and credit monitoring services to help with identity theft issues that could arise.
With the rise of cyber attacks, cyberinsurance will likely become more commonplace. However, the insurance industry will need to come up with a more cut and dry policy, which at the moment is quite difficult because cybercrime and attacks are still so new. Insurance providers need to gain more knowledge and data on the issue in order to come up with a policy that works best for its insureds.
Here at Extract, we are very concerned about our customers’ security. We have been in the business of redaction for close to 20 years, and with over 4 billion pages redacted, we have had ZERO reported data privacy breaches. Interested in learning more about our automated redaction? Contact us today!
