Delinea’s 2023 State of Cyber Insurance Report has illuminated a growing discrepancy between cyber insurance providers and enterprises seeking comprehensive coverage.
Furthermore, the study, conducted with insights from 300 US organizations by Censuswide on behalf of Delinea, reveals a concerning trend: acquiring cyber insurance is becoming more challenging, with over six months required by a rising number of firms for policy procurement. This year’s findings also unveil a surge in companies making multiple claims, reaching 47%, while a substantial 67% of respondents reported insurance premiums spiking by 50–100% during application or renewal.
Theresa Le, Chief Claims Officer at Cowbell, advises businesses to choose insurers that offer comprehensive risk assessments, aiming to address identified security vulnerabilities before policy issuance. Notably, the report highlights a growing list of exclusions that could nullify cyber insurance coverage, encompassing factors like inadequate security protocols, human errors, acts of war, and non-compliance with procedures. Joseph Carson, Chief Security Scientist at Delinea, emphasizes the need for organizations to understand policy intricacies to ensure claim approval and prevent unexpected costs in the event of an attack.
Despite challenges, the report reveals that 96% of organizations obtained a security solution pre-approval, and 81% secured the budget necessary for desired cyber insurance coverage.
A significant portion of respondents (36%) indicated board and executive management mandates, highlighting leadership involvement. Given the prevalence of cyberattacks arising from compromised credentials, the study underscores the pivotal role of security controls, with 51% of respondents noting Identity and Access Management (IAM) controls as crucial requisites.
As cyber insurance gains strategic significance, organizations are aligning budgets to invest in solutions such as IAM (50%), password vaults (45%), and Privileged Access Management (PAM) controls (44%) to bolster their coverage.