Cyber Insurance as Mandatory Cybersecurity Tool

In today's digital age, the need for cyber insurance as a mandatory cybersecurity tool has become increasingly apparent. With the rise of cyber-attacks and the potential damage they can cause, businesses of all sizes are recognizing the importance of protecting themselves against these threats. Cyber insurance is a specialized form of insurance that is specifically designed to protect against the unique risks posed by cybercrime.

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Reasons Why Cyber Insurance Is a Mandatory Cyber Security Tool

Below are a few key reasons why Cyber insurance is considered mandatory cyber security tool for your business.

Increase in the Frequency and Severity of Cyber Attacks

According to a report by Cybersecurity Ventures, the cost of cybercrime is projected to reach globally $10.5 trillion annually by end of 2023. This highlights the need for businesses to have a plan in place to protect themselves against the financial losses that can result from a cyber attack. Cyber attacks are becoming more sophisticated and are targeting small and large organizations alike, it's no longer a question if an organisation will be targeted, but, when?

Potential Damage due to Cyber Attacks

Another important factor is the potential damage that can be caused by a successful cyber attack. A data breach can result in the loss of sensitive information, financial losses, and damage to a company's reputation. These can have a devastating impact on a business, potentially leading to bankruptcy.

In addition, a data breach can also result in legal and regulatory fines, as well as the cost of notifying affected individuals and providing credit monitoring services. A network failure can disrupt business operations, resulting in lost revenue and damage to a company's reputation. These risks are not covered by traditional forms of insurance, making cyber insurance a mandatory cybersecurity tool and a necessary step for businesses to protect themselves against these threats.

Mandatory Requirement

Furthermore, many industry regulators and standard bodies have made it mandatory to have cyber insurance for organisation's that handle sensitive information. For example, DISHA (Digital Information Security in Healthcare Act) for healthcare organisations, PCI DSS (Payment Card Industry Data Security Standard) for an organization that handles credit card information, and many more.

This further emphasizes the importance of having cyber insurance as mandatory cybersecurity tool for businesses of all sizes. This is to ensure that companies are well-equipped to deal with the aftermath of a cyber-attack and to ensure that they can continue to operate in the event of a cyber incident.

Features and Importance of Cyber Insurance

Cyber insurance can also provide organisations with access to a wide range of resources, including incident response teams and forensic experts, which can help organisationsquickly and effectively respond to a cyber attack. Additionally, many cyber insurance policies include coverage for public relations and crisis management expenses, which can help organisations to mitigate the damage to their reputation in the event of a cyber attack.

When purchasing cyber insurance as a mandatory cybersecurity tool, it's important for companies to consider the specific risks they face and to select a policy that provides appropriate coverage. Some policies may provide coverage for a wide range of potential losses, while others may be more narrowly focused. Organisations need to work with a trusted insurance broker to identify their specific needs and to select a policy that provides the appropriate level of protection.

Conclusion

Cyber insurance as a mandatory cybersecurity tool is becoming increasingly necessary due to the increasing frequency and severity of cyber attacks. The potential damage caused by a successful attack, and the lack of coverage provided by traditional forms of insurance, make it necessary for businesses to protect themselves against the financial losses that can result from a cyber attack. With more and more regulatory bodies making it mandatory, it’s important for companies to consider purchasing cyber insurance coverage to ensure their business is protected against cyber threats.

Written By: PolicyBazaar - Updated: 23 January 2023

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Out of 5 million people globally, 6 lakhs Indians have had their sensitive data stolen and sold on the bot market making India, the worst affected country.
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The average cost of the digital identity of one person was Rs.490, revealed NordVPN, the world's largest VPN service provider. The stolen data include user logins, screenshots, digital fingerprints, cookies, and other sensitive information. All these data are sold in packets in the bot markets, which refer to places where hackers sell stolen data from victims' devices with bot malware. The study majorly looked into three-bot markets the Genesis market, 2Easy and the Russian Market. Out of 26.6 million stolen logins found on the bot markets, 7,20,000 were Google logins, 6,47,000 were Facebook and 6,54,000 were Microsoft logins. Moreover, 667 million cookies, 5,38,000 auto-fill forms, 81,000 digital fingerprints, multiple device screenshots, and webcam snapshots were also found by the researchers. The bot markets are distinct from other dark markets as bot markets are able to get huge amounts of information related to one person in one place. The hackers also guarantee that once the bot is sold, the data of the victim will be updated till their device is affected by that bot, stated Marijus Briedis, chief technology officer at NordVPN. Security researchers also said that not all bots come with a good purpose, many can be malicious as well. These bots operate in multiple fields like customer service, SEO and entertainment and are becoming increasingly common recently. Vidar, RedLine, Taurus, AZORult and Racoon are some of the most popular malware used to collect and steal information out of which RedLine is the most common, stated the report.
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All India Institute of Medical Sciences, New Delhi, India reported a cyberattack on November 23, 2022. Later, the statement released by AIIMS said that e-hospital system
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Cyber Criminals Sending Phishing Links to Twitter Users

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Cyber criminals are targeting twitter Verified Twitter user by sending them phishing links. The cyber criminals send the phishing link to steal their phone number
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