Cybersecurity companies underinsured?
Data breaches are a major concern to businesses and governments around the world. So one would think that carrying cyber insurance would be a given. It is not, especially for one particular classification of industry: Cybersecurity.
According to Munich Re, a risk analysis firm, 87% of companies lack coverage. Ransomware payouts doubled to $1.1B in 2023, according to Chainalysis. That’s probably why the cyber insurance industry is booming. The market hit $14B in 2023 and is set to double to $29B by 2027.
Large firms are more likely to carry insurance than small to medium companies (SMCs), even though they are more likely to be targeted by cybercriminals. However, small companies are more likely to carry much larger limits than larger companies.
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