Sophos, a global leader in cybersecurity services, has released a new report revealing the critical role of frontline cyber defenses in insurance adoption. The report shows that the quality of an organization’s cyber defenses directly impacts their insurability, premium costs, and policy terms. Based on the survey of 3,000 cybersecurity and IT professionals across 14 countries, the study found that 95% of organizations that purchased cyber insurance reported a direct impact, with 60% stating it affected their ability to get coverage, 62% saying it impacted the cost of their coverage, and 28% saying it impacted the terms of their policy.
The research also reveals that cyber insurance adoption is now the norm, with 91% of organizations reporting having coverage. The study further shows that insurance coverage plays a role in an organization’s ability to recover from an attack. For instance, organizations with cyber insurance are more likely to recover data encrypted in a ransomware incident. 98% of those with a standalone policy and 97% of those with cyber as part of a wider insurance policy were able to recover encrypted data after a ransomware attack, compared to 84% of those without cyber coverage.
According to Sophos Senior Vice President of Products Raja Patel, the caliber of an organization’s cybersecurity defenses in protecting against active adversaries is critically important. Patel added that organizations need to properly configure and manage security technologies and effectively respond to threats, requiring an expert talent skillset. With industry-first threat detection and response capabilities, Sophos can provide customers with superior security outcomes.
The report highlights the importance of having robust cyber defenses and cyber insurance to mitigate risks and ensure quick recovery from cyber attacks. Organizations that take a proactive approach to cybersecurity can avoid the negative impacts on insurability, premium costs, and policy terms, ensuring they are protected against cyber threats.
8 May 2023
