Among the things trends in cyber risks and cyber security for businesses can have impacts on is the insurance industry. This is because cyber insurance is one of the types of insurance coverage that is offered for businesses.
One very recent trend when it comes to cyber risks is that there’s been a bit of a lull lately when it comes to high-profile data hacks. As this lull has gone on, there has also been a decline in the average cyber insurance rates for retailers, health care companies and other businesses categorized as high-risk when it come to cyber issues.
This lull comes after there was a rash of big data breach incidents. That rash of incidents had carried in its wake a rise in average high-risk-business cyber insurance rates. So the time of the lull has seen a reversal in general rate behavior when it comes to high-risk businesses.
One wonders if this lull is just a blip or the start of a continued general drop in high-profile data hacks. One also wonders if the lull is just a coincidence or the result of something, such as changes in cyber security practices and behavior by companies.
Cyber insurance rates are not the only insurance-related thing trends in business cyber risks have the potential to impact. Such trends can also impact things like how common cyber insurance claims are, how many businesses are seeking out cyber insurance coverage and what sorts of claims issues could be particularly likely to arise for insurance companies in relation to cyber insurance claims. Insurance defense attorneys can provide insurance companies that offer cyber insurance with assistance in dealing with legal issues related to cyber insurance claims, such as cyber insurance claim disputes.
It will be interesting to see what trends the U.S. ends up experiencing in upcoming months when it comes to business cyber risks and cyber security.
Source: Reuters, “Cyber insurance rates fall with lull in major hacks,” Jim Finkle, March 30, 2016