More companies today are reaping the benefits of cyber insurance, with almost half of the respondents in Marsh and Microsofts 2019 Global Cyber Risk Perception Survey reporting that they have cyber insurance, compared to 34% in 2017.Excess & Surplus Lines
Nonetheless, some naysayers claim that cyber insurance can work against companies since cyber extortionists use it as an incentive to target firms.
In the report, “Cyber Insurance is Supporting the Fight Against Ransomware,” Marsh expert Matthew McCabe outlines why this line of thinking around cyber insurance is incorrect. In fact, the coverage can be a useful tool for a company even before a hack or breach occurs.
“Number one, theres utility in just going through the application for cyber insurance, in that it acts like a yearly assessment. You have a third party whos kicking the tires on how youre protecting your networks and how youre responding to incidents, and thats a source of maturation for companies,” said McCabe, SVP and assistant general counsel for cyber policy at Marsh.