In light of escalating cyber threats, the importance of robust cyber insurance has never been more evident. The industry is continuously adapting to solve new and emerging threats and providing more precise coverage that meets evolving client needs. In Q3 2023, data breaches and cyber extortion were the most common event types we saw across a wide range of industries in the SME market.
At Cowbell, we cover for data breach with the Cowbell Breach Fund and for extortion with Extortion Costs. The most common techniques that we are seeing used by threat actors now include: phishing, access brokers, exploitation of out-of-date software, and targeting cloud infrastructure. Security controls and a robust risk mitigation plan are essential to minimizing cyber threats.
Over the past year, we’ve seen a soft market after a hard market due to extortion uptick between 2019-2021. There has been no shortage of entrants or new paper over the past year+ and we are seeing a surge in demand for competitively priced, encompassing policies with full limits on most coverages.
What does this mean for agents? The current landscape means market stability, an emphasis on value-adds, and access to multiple products and services. At Cowbell we offer a wide range of resources for agents including:
- Cowell 365: 24/7/365 support from our cyber risk mitigation and cyber claims experts.
- Cybersecurity Awareness Training: One year of free cybersecurity training for all policyholders & employees by Wizer.
- Cowbell RX: A marketplace of vetted cybersecurity vendors, offering exclusive, pricing to policyholders.
- Risk Engineering: Our team of cybersecurity experts are available to help businesses address security gaps and exposures.
Cyber insurance serves as a crucial financial safety net for businesses and individuals, offering protection against the financial fallout of cyber incidents. As the frequency and severity of cyber attacks continue to rise, insurance not only helps mitigate the financial impact of a breach but also incentivizes companies to prioritize cybersecurity measures, fostering a more resilient and secure digital ecosystem.
In essence, the landscape of cybersecurity in 2023 underscores the indispensable role that cyber insurance plays in bolstering the overall resilience of organizations in the face of an ever-evolving threat landscape.
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