Someone quipped, “The fastest way to learn about cyber is to be the victim of a cyber-attack!” Perhaps a better alternative is an informed Insurance Agent.
Information about breaches and cyber is pervasive, but what are the most effective facts for discussing cyber perils with prospective insurance customers? Here are just a few statistics:
- 40% of breaches happen to businesses with less than 1000 employees
- The average data breach loss cost is $3,500,000
- Breaches usually cost around $200 per person
This VerizonData Breach Investigation Report and this PCI ComplianceReport are full of facts, stats, data, and advice, but for the first time cyber insurance customer, you may have more success following the KISS principle.
If fire insurance is vital for anyone with a building, then Cyber insurance is vital for any business or organization with data and if they have:
- A bank account
- Connection to the internet
- Accepts credit cards (PCI)
- Involved in healthcare (HIPPA)
Buying cyber should be like buying fire insurance, in fact it should be an even simpler decision because for many insureds cyber insurance premiums are significantly less, while there’s an even greater chance of a cyber loss than a fire loss. (this emphasis added to the original article to make clear that cyber losses are more likely than fire losses while cyber insurance costs less!)
Anecdotal evidence makes this clear, to demonstrate go to all of your favorite News sources, search for news about fires. Ok, now search for news about data breaches and cyber perils. Did you catch it? Cyber stories dwarf fire stories (if you even found any fire stories!).
Now look at fire insurance rates based on fire limits, and cyber premiums versus cyber limits, cyber insurance is …well, way cheaper! This cannot last for long, Agents, when you’re uninsured customers finally purchase cyber insurances it will be Insurers paying the losses!
Many organizations are unaware of all the cyber coverage parts available under a comprehensive cyber policy. “It appears many insurance companies are not either,” quipped another Agent, “because, what else explains many have limited and restrictive coverage parts or ignore obvious cyber risks such as theft from bank accounts, system interruption costs, and business income loss?” Of course, the real answer is they’re not sure how to price for the risks, but these and other cyber loss expenses are available under comprehensive low-cost policies from leading cyber insurance markets.
We continue to press Agencies to study cyber insurance and work with cyber insurance specialists. As Agents become proficient with cyber perils and cyber coverages, they’re effective at putting it in simple terms for customers and prospects. Consider www.cyberinsurancetraining.com for elemental cyber education, and remember – KISS
KISS = Keep it Short & Simple 🙂