The cost of cybersecurity insurance is soaring

State-backed cyber attacks are on the rise–but they are not raising the level of alarm that they should in the corporate world.

When working with companies, my team often encounters executives who say they have insurance, so everything will be alright. Or, they say they are not likely to be targeted by state-backed attackers because their company doesn’t have any political or strategic importance.

Unfortunately, this is not a productive way of thinking. Come the end of March, Lloyds will no longer cover damage from cyberattacks carried out by state or state-backed groups. In the worst cases, this reduced insurance coverage could exacerbate the trend of companies taking a passive approach toward state-backed attacks as they feel there is now really nothing they can do to protect themselves. On the flip side, this increased risk and demand from companies for coverage could push the cyber insurance sector to innovate and find ways to deal with the growing risk levels.

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