Only 29% of US businesses have cyber insurance; Deloitte outlines steps for insurance companies to improve risk models, communication, and policy sales.
Sales of cyber insurance policies are suffering from a lack of shared data about security incidents, too few standard definitions, and not enough focus on risk mitigation for insurers or customers, according to a report from Deloitte released this week.
Value of the current cyber insurance market ranges from $1.5 billion to $3 billion, and remains a small fraction of the $505 billion revenues from all insurance premiums bought in 2015.
Many businesses have yet to purchase a cyber policy: not even a third of US businesses (29%) bought cyber insurance as of October 2016, according to a survey by the Council of Insurance Agents and Brokers that Deloitte cites. Of those companies or organizations that have purchased policies, many are often underinsured, according to Deloitte’s Demystifying Cyber Insurance Coverage report.
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