Cyber insurance in 2022: Realities from the front line

Organizations face stiff headwinds when it comes to getting the cyber insurance necessary to survive in the face of blistering attacks. The bottom line: as the number of attacks increase – and with it the damage to organizations, cyber insurance is becoming harder and more expensive to obtain.

The challenges are captured in a recent Sophos report: “Cyber Insurance 2022: Reality from the InfoSec Frontline.” Insights in the report were gleaned from a survey of 5,600 IT professionals. Among the findings:

Over the last year, companies have been dealing with the following:

  • A 57% increase in the volume of attack
  • A 59% increase in the complexity of attacks
  • A 53% increase in the impact of attacks

When it comes to ransomware, things are getting worse. When asked if they’d been hit by ransomware in the last year, 66% of respondents said yes – up from 37% when we asked the same question last year. What’s more, the average ransomware payment is now north of $800,000 whereas last year it was around $170,000.

When it comes to trying to get cyber insurance in 2022:

  • 54% said the level of cybersecurity they need to qualify is now higher
  • 47% said policies are now more complex
  • 40% said fewer companies offer cyber insurance
  • 37% said the process takes longer
  • 34% said it is more expensive

But these storm clouds have a silver lining: Almost all of those surveyed have made changes to their defenses in order to secure insurance. Of those who made changes:

  • 64% have implemented new technologies and services
  • 56% have increased staff training and education activities
  • 52% have changed processes and behaviors

For more detail, download the full report.

Bill Brenner

Bill Brenner is VP of Content Strategy at CyberRisk Alliance — an InfoSec content strategist, researcher, director, tech writer, blogger and community builder. He was formerly director of research at IANS, senior writer/content strategist at Sophos, senior tech writer for Akamai Technology’s Security Intelligence Research Team (Akamai SIRT), managing editor for CSOonline.com and senior writer for SearchSecurity.com.

Get daily email updates

SC Media's daily must-read of the most current and pressing daily news

By clicking the Subscribe button below, you agree to SC Media Terms and Conditions and Privacy Policy.