Digital economy is expanding rapidly and is responsible for one-third of the GDP of the major economies. But an unprecedented surge in cyber-attacks during this pandemic has caused unparalleled business disruptions.
Cybercriminals are targeting sensitive data to increase the ransom demand pressure. At the same time, the cybercrime ecosystem is rapidly evolving and maturing, and the strike is getting broader and deeper.
Increasingly, boards are recognising cyber risk as a business issue. Businesses are adopting various frameworks to quantify the impact of cyber exposure. Cyber risk management is helping business leaders to understand their risk profile and adopt diverse security and risk transfer measures.
Building cyber resiliency has become the priority of boards across the globe.
As businesses evolve to include digitization in their processes and offerings, cyber legislation and regulations are changing at an unexpected pace. Cyber threat and risk of non-compliance make it one of the most expensive risks faced by the companies. Breaches and business interruptions can cause catastrophic losses to businesses.
Companies today are viewing cyber insurance as a proactive measure for protection against cyber risk. Management of cyber risk involves a transferring mechanism by companies to get indemnified from any losses arising from cyber exposure. Businesses today are procuring cyber insurance products as mitigation tools. These require the help of an expert to make it tailor-made for the company.
Cyber insurance could soon become an integral part of enterprise risk management, considering the expanding digital landscape and the complex risks associated with it.
The writer is Senior Vice President, Liability Head, GLOBAL Insurance Brokers