Industry experts are saying that some companies may need up to $1 billion in cyber coverage but warn that some organizations are having trouble finding even a fraction of that.
Currently, the maximum amount of cyber insurance available is $500m but some companies struggle to get more than $300m in coverage. Recent attacks have proved just how costly cyber attacks can be. In November, Target announced that the cost of its attack came in at about $248m. However, experts are warning that the cost of a catastrophic attack a large bank or utility would be significantly higher. According to Ben Beeson, a partner at insurance broker Lockton, “the costs are becoming so great that we really need $1 billion policies in light of the threats we are facing…The question is how do we get there and price risk, especially when the risks are changing every day.”
Financial Times has the whole story.