Posted by Mumbai: As many as 95% of organisations that bought a cyber insurance policy last year reported a direct impact, reveals Sophos’ new report The Critical Role of Frontline Cyber Defences in Insurance Adoption.
The new report details how the quality of an organisation’s cyber defences impacts its insurability, premium costs and policy terms.
95% of organisations that bought a cyber insurance policy in the last year reported a direct impact.
60% of organisations said it impacted their ability to get coverage.
62% of organisations said it impacted the cost of their coverage.
28% of organisations said it impacted the terms of their policy.
The report also finds that cyber insurance adoption is now the norm with 91% of organisations reporting having coverage, with an additional 8% reporting they don’t currently have coverage but plan to obtain it in the next year.
Cyber insurance coverage plays a role in an organisation’s ability to recover from a cyberattack.
·Organisations with cyber insurance are more likely to be able to recover data that was encrypted in a ransomware incident: 98% of those with a standalone policy and 97% of those with cyber as part of a wider insurance policy were able to recover encrypted data after a ransomware attack, compared to 84% of those without cyber coverage
·Organisations with standalone cyber insurance policies are almost four times more likely to pay the ransom to recover encrypted data than those without cyber coverage: of those that had data encrypted in a ransomware incident in the last year, 59% of those with a standalone cyber insurance policy paid the ransom, compared with 37% of those with cyber as part of a broader insurance policy and 15% of those that don’t have cyber insurance
“The caliber of an organisation’s cybersecurity defenses in protecting against active adversaries is critically important. Organisations need to properly configure and manage security technologies and also effectively respond to threats – and that requires an expert talent skillset,” said Raja Patel, SVP of Products, Sophos.
“Industry-first threat detection and response capabilities now enable Sophos to meet customers where they are and with exactly what they need to ensure superior security outcomes,” added Patel.
The report is based on an independent global study of 3,000 cybersecurity / IT professionals across 14 nations conducted in January and February 2023.