Cyber Insurance Outlook for 2024
Over the last 100 years, insurance companies have driven changes and helped to reduce risk in our lives and ultimately for their bottom line. It's been a symbiotic relationship that for the most part has helped bring about positive change. Some of these changes are things like seatbelts, car safety, medical safety, and health improvements that no one can argue are a bad thing. The industry is once again helping to reduce risk in one of the fastest and most costly aspects of our lives that may not be as obvious. Right now 10% of the cost of anything we consume is being attributed to cyber criminal theft, and insurance companies are in the middle of this battle. Every year as we plan and budget for next, our insurance company gives us a glimpse into what cost increases we could be seeing.
This excerpt from their 2024 review highlights the latest in exciting technology, but what is now also a tool for criminals:
Lastly, cybercriminals have increasingly weaponized AI technology, exacerbating cyber losses and related claims among businesses. Primarily, cybercriminals can utilize this technology to carry out harmful activities (e.g., launching malware and social engineering scams, cracking passwords, finding software vulnerabilities and reviewing stolen data) at a rapid pace
and with greater success rates, allowing them to cause major damage and even evade detection.Considering these issues, it’s best for businesses to carefully review the pros and cons of AI technology and establish adequate risk management techniques before implementing such solutions within their operations.
We need to decide if the benefits of using AI in our business outweigh the risks. Although AI technology is exciting, making sure it is properly secure within our networks is an important first step. Often we are excited to jump at something that will make life easier, but forget the risks associated with it.
Insurance companies are helping to reduce those risks by clarifying and insisting that certain steps be taken. Working closely with a technology provider can reduce risks and make sure that you are adhering to your cyber policy's sometimes complicated requirements. We can help ensure that you have taken every step necessary to protect your networks and comply with regulations.
Have you looked at your cyber insurance policy? Do you know what policies and procedures need to be in place? Reach out to us and schedule a risk analysis to see if you are compliant with these complicated regulations. We’re here to help!
