Author: Rob Wayt

By The Structured Security Team -- Experts agree, it isn't a matter of if your organization will come against a cybersecurity threat, it's a matter of when. And companies that provide cybersecurity insurance are passing along the costs, increasing premiums to combat the risk of increasing payouts. Cybersecurity Insurance Costs Are Increasing Rapidly Cybersecurity insurance costs are increasing dramatically for organizations across the globe. According to a report by Standard & Poor's Corp. published earlier this year, "Cyber insurance premiums, which now total about $5 billion annually, will increase 20% to 30% per year on average in the near future." This is partly due to increased claim frequency, the severity of these claims, and the uncertain nature and definition of cyber risk within the insurance industry itself. Another report, the Marsh Global Insurance Market Index, found that cyber insurance costs aren't plateauing like the costs in other markets. In fact, in the first quarter of 2021, prices generally increased by 35% in the U.S. and 29% in the U.K. Why the Increase in Cybersecurity Insurance Costs? As previously stated, the rise can be partly attributed to increased claim frequency and the severity of the claims filed. Here is a deeper…