Cyber insurance chasm opens amid lack of risk pricing, education
Fewer than 10% of US companies are thought to have purchased cyber insurance policies, according to a white paper by cyber risk assessors Threat Sketch. This demonstrates a failure of education and understanding, according the the report. Hacks are on the rise, with a 36% increase in ransomware incidents this year, the company said in "An Overview of the Cyber Insurance Market". It blames the shortfall on the absence of a reliable data model to price policies and a lack or education on the threat among insurance agents and consumers.
WINSTON-SALEM, N.C., Aug. 1, 2017 /PRNewswire/ -- Threat Sketch, a leading expert in cyber risk assessment, today announced a new white paper analyzing the cyber insurance market titled, "An Overview of the Cyber Insurance Market." This paper is the result of research into the field of cyber insurance and the role it plays in overall cyber security measures for small to medium businesses.

"At Threat Sketch, our priority is providing products and services to help small to medium businesses prevent and prepare for cyber attacks," said Rob Arnold, CEO of Threat Sketch. "Through our work we found serious gaps in awareness of the threat of cyber attack, but also in education on the types of services available to businesses. This white paper is the result of our ongoing research to help eliminate that gap and provide the education and services these businesses need."

In the paper, Threat Sketch reports first that regardless of how many cyber initiatives a company puts into place, the risk of cyber attack cannot be eliminated. In fact, cyber attacks continue to grow, with a 36 percent increase in ransomware attacks worldwide. In addition, many business insurance policies do not cover cyber attacks. While cyber insurance policies have been around for more than 20 years, fewer than 10 percent of U.S. businesses are thought to purchase these policies.

The white paper reports three primary reasons for the discrepancy between the need for cyber insurance policies and the businesses purchasing these policies. One is the lack of a reliable data model for insurance companies to appropriately price cyber insurance policies. The other two factors are a lack of education presented to insurance agents and consumers.

The white paper includes information on how to bridge this education gap, as well as a look at how cyber insurance is an integral part of a business's cyber security solutions. The Threat Sketch Risk Assessment, a high-level, strategic cyber risk assessment developed specifically for small to medium-sized businesses, can help close this gap. "During development of our risk assessment product, we ran into some of the same issues underwriters encounter, specifically the problem of sparse data sets that didn't fit traditional risk formulas," Arnold said. "Our experience in sourcing and interpreting this highly technical data can help insurance issuers better manage their underwriting activities."

Click here to download your free copy of the entire white paper.

About Threat Sketch -- Founded in February 2015, in Winston-Salem, NC, Threat Sketch provides tools that enable small business owners and executives to evaluate and manage cyber security at a strategic level. The executive team brings decades of IT, risk analysis, financial/economic and project management experience and expertise to provide tailored, strategic counsel to a wide variety of small business clients. To learn more call 844-487-4757, or visit www.threatsketch.com.

Media Contacts

Liz Ericksen, Customer Journey Manager

[email protected]

844-487-4757 ext 803

Rob Arnold, Threat Sketch CEO

[email protected]

SOURCE Threat Sketch LLC