Next to the words, “You owe the IRS $XXX” or “You’ve been served,” no phrase creates more fear today than, “You’ve been hacked.”
The enterprise security firm Proofpoint said that during the first six months of 2019, they had detected over 15 million attempts by unauthorized users who tried to access the cloud computing networks of Fortune 500 companies. The bad news is that 400,000 of those attempts were successful.
Later in 2019, companies like DoorDash, Words with Friends, MoviePass and Capital One were hacked. As insurers and their clients implement new technology and move more information to the cloud, it opens the doors for hackers to access their data. Claims magazine asked several carriers and technology companies what they see as the primary cyber risks of the future. Some are no surprise such as ransomware and phishing (business email compromise). However, the effects of regulations like the General Data Protection Regulation (GDPR) in the EU and California Consumer Privacy Act are expected to drive an increase in claims as the size of the attacks escalates.
With the average cyber claim costing well over a half-million dollars and carriers limiting coverage under commercial general liability insurance, standalone cyber policies will become more critical for businesses of all sizes. Even high net-worth individuals are seeing the benefit of carrying their own personal cyber policies. In addition, the increased use of 5G technology, which will allow even more devices to connect to the internet, will attract more cyberattacks, giving hackers greater access to information and capturing it in even less time.
When insurers utilize more technology and move information to shared networks, these risks will only grow — knowing where and what they are will help mitigate their effects.
Talk to your local IMT Agent today to learn what coverage your business needs in order to be protected from a cyber attack.
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