For industries like healthcare that process clients’ most sensitive data, cybersecurity is vitally important. The fact remains, though, that cybersecurity is mystifying to most, and web predators can prey on the lack of knowledge these companies have. Insurance can offset the risk of data breaches and other threats, though, and cybersecurity coverage has evolved to provide policies that protect against some of the most common healthcare cybersecurity threats. If you’re an agent considering the coverage that your clients may need, you’re likely wondering if cyber insurance is growing? Read on to find the answer and three other cyber insurance predictions.
Growth, Growth, and More Growth
For insurers wondering whether cybersecurity insurance will grow, the answer is yes — emphatically! Ransomware attacks — in which an illicit file is implanted to demand payment from users — are just one kind of cyber-attack that’s on the rise. With more people working remotely and less consistency, these problems are poised to worsen, which means clients will start looking for solutions. Healthcare cybersecurity insurance is one solution that provides clients with both fiscal protection and personal peace of mind.
Coverage Will Standardize
As more clients seek out cybersecurity coverage, the coverage provided by these policies will start to standardize. In the current market, coverages for losses, typical policy terms, and coverage limits all vary vastly from one policy to the next. As clients’ needs become clearer, though, these disparities will lessen, and a standard model of coverage will emerge. This means that insurers will be able to offer competitive coverage easily and ensure that their policies provide the same coverage — if not better — than competitors are offering your clients. This will make rates more consistent for customers seeking cybersecurity coverage for their company.
Coverage will Become Standard
As coverage becomes standardized, it will soon become standard, too. While businesses already understand the importance of general liability insurance and workers’ comp coverage, many businesses might currently view cybersecurity insurance as unnecessary. With cyber-attacks on the rise, especially in industries like healthcare, businesses will likely soon realize the importance of coverage to protect them from such attacks. In turn, cybersecurity policies will likely become a standard feature of most companies’ coverage bundles.
Underwriting Regulations Will Increase
Increased demand and standardized coverage will eventually lead to more consistency in underwriting practices. Because this type of coverage is comparatively new, there are fewer standards for risk management and underwriting, but increased enrollment in such coverage will eventually rectify this. As consistency grows, rates will stabilize, too, and make cybersecurity policies increasingly attractive to any business that may be at risk — especially those in fields such as healthcare who are legally liable for maintaining the security of their customers’ information.
