According to a new report from Allianz Global Corporate & Specialty, cyber risk costs the global economy $445 billion annually with $108 billion coming from the United States. The report also predicts that cyber insurance premiums will increase from $2 billion per year to more than $20 billion over the next decade.
As one of the most underestimated risks by businesses, it is important for both companies and the government to increase their awareness of cyber risks and work together to tackle the problem. Corporate data breaches and privacy concerns capture much of the attention in cybersecurity today. However, it is necessary to understand that future cyber risks will “stem from intellectual property theft, cyber extortion, and the impact of business interruption after a cyber attack,” increasing the need for cyber insurance.