Cyberattacks are more costly than the reoccurring damage from natural disasters: US$3 trillion in 2015, a price that is projected to climb to $6 trillion annually by 2021, unless the current trend is disrupted. While insurance against risk is common, the cyber insurance market is not generating the popularity it may mandate. For example, the US spent $2.7 trillion in premiums in 2016, compared to the mere $2.5 billion against cyberattacks and hacking – 0.09% of the total spending.
As one professor’s research on cybercrime and cybersecurity reveal, the cyberattacks have become progressively sophisticated in the past decades with cryptocurrencies accused of being a “dream come true” for “cyber-extortionists.”
“The cyber insurance market’s extremely small size suggests that organizations and individuals might have underrated its importance. However, more and more internet users are finding reason to protect themselves.”
Without insurance from these risks, people and businesses are left vulnerable to the various methods of exploitation of computer systems, technology-dependent enterprises and networks.
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26 Oct 2018