Two recent studies showed that risk managers and organizations are increasingly turning to stand-alone cyber policies to insulate themselves from losses related to data breaches and outrages associated with cyber attacks.
According to an online survey conducted by the Risk & Insurance Management Society Inc., 51 percent of risk managers currently purchase stand-alone cyber policies. Of the 49 percent who don’t, 74 percent are considering purchasing it in the next year or two. Additionally, the survey found that “58% of those with cyber insurance policies carry less than $20 million in cyber coverage, while 49% of those with the coverage pay more than $100,000 in premium.”
Furthermore, a recent Marsh report highlighted that in 2014, “the number of US-based Marsh clients purchasing stand-alone cyber insurance increased by 32 percent over 2013, and the number will keep growing in 2015.” The highest cyber insurance take-up rates occurred among health care and education clients, 50 percent and 32 percent respectively. Hospitality and gaming rates increased by 26 percent and services at 22 percent.
The report also found that “companies with revenue exceeding $1 billion purchased 22 percent higher cyber insurance limits on average in 2014 at $34.1 million compared to $27.8 million in 2013.”