Insurance Technology Featured Article

Cyber Insurance Market Grows as a Result of Ongoing Cyber Threats

June 14, 2012

Most of us already know that data when traveling on the Internet can be subject to a series of vulnerabilities, including data loss, especially because of hacking or threats by cybercriminals – people who make use of a computer and a network to commit computer crimes.

Many cyber crimes target computer networks or devices, but sometimes computers are just a means to commit fraud or a way to cyber-stalk.

Whatever the perpetrators’ reason to hack, cybercriminals are committing crimes subject to very serious cyber/Internet laws.

With the growth of cyberspace, there have been an increasing number of cyber-crimes threatening e-commerce and e-business. That could be bad news for the future of companies that conduct work exclusively online.

A suitable solution to protect a businesses’ technology and networks from the effects of cyber crimes is to improve cyber security using cyber insurance, an insurance policy offering liability coverage which can help protect from the damage of cyber threats or other Internet-based risks. 

Cyber liability insurance offers businesses a risk-management solution to mitigate IT risks and to protect its assets; it will help offset expenses that may arise from cyber-security incidents.

There are benefits to purchasing cyber insurance for businesses: cyber insurance usually covers the cost of restoring or recollecting lost or damaged data. It also comes in handy for privacy law violations.

In addition, because third-party vendors like cloud platform service providers tend not to assume liability for data loss and/or breaches, having the right insurance could prove invaluable for a business.

Obviously to be cost-effective, cyber insurance can be tailored to meet the needs of a business that must strike the right balance between the eventual costs after a malicious event and the cost of the policy. The need for liability coverage has, however, become apparent: more and more companies today have been reporting data breach scenarios.




Edited by Braden Becker

Article comments powered by Disqus

Related Insurance Technology Articles

SnapOne Launches Life Security Action Engine Impact Detection Prototype

SnapOne, provider of solutions that allow users to secure and manage people, data, and devices, announced the release of its Life Security Action Engine (LSAE) Impact Detection prototype, which will be using sensors to deliver valuable information. [ Read More ]
04/27/2015

Tennessee Farmers Life Insurance Company Picks Sapiens to Modernize Policy Administration System

Sapiens International Corporation, a provider of retirement and insurance software solutions, has announced that Tennessee Farmers Life Insurance Company (TFLIC) has selected its ALIS policy administration system. [ Read More ]
04/27/2015

New Technologies Make Teens with Smartphones Safer Drivers

Driving with a smartphone can be a welcome addition to a driver's arsenal of tools. Not only can it take the place of a dedicated dash-mounted GPS system, offering turn-by-turn directions and readily updated maps, it can even be put to work as a replacement for radio, offering the best of streaming music while driving. But anyone knows that a powerful tool can be dangerous, and driving with a smartphone has great potential to make for distracted driving. That's a point that can be addressed with… [ Read More ]
04/27/2015

MediaAlpha Launches Direct-to-Quote (DTQ) to Improve Online Consumer Experience

A report released by SNL Financial from data compiled in June of 2014 revealed the insurance industry as a whole spent more than $6 billion in advertising in 2013. While TV, radio and print have limited reach as to how consumers interact with the content, online advertising is the perfect medium to further that interaction into potential sales. And with the increased adoption of smart mobile devices, there are more opportunities for advertisers to create engaging ads that deliver tangible result… [ Read More ]
04/22/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!