The Future of Cyber Insurance: Rapid Growth or an Impending Collapse?

The Future of Cyber Insurance: Rapid Growth or an Impending Collapse?
It's no secret that cyber insurance is becoming more and more crucial these days. With cybercrime on the rise, companies are looking for ways to mitigate and control their digital risk. The cyber insurance industry has grown to over $8 billion in the US, but it was only worth about $3 billion in 2020. Crazy, right? And it's only expected to keep growing. In fact, some experts predict it will reach over $20 billion by 2027.

But as more companies turn to cyber insurance, the industry is facing some challenges. Premiums are becoming more expensive, and many companies are being denied their claims. So what does the future of cyber insurance look like? Some people think it will continue to grow, while others think it might collapse or shift.

One way cyber insurance could change is by expanding to cover more tech, like driverless cars. Driverless cars are much more complicated to insure because the risk is different. It’s hard to determine fault if there’s an accident when tech is the driver of one of the vehicles. But don’t worry, there’s hope. Many experts predict that property and casualty insurance will reduce over time, and cyber insurance will be the category that takes over.

And get this – some people claim that in the next 50 years, the cyber insurance industry will grow to eventually equal property and casualty insurance, which is currently worth around $500 billion in the US. That’s about 60 times larger than the market is now!

But here’s the thing: the way cyber insurance evaluates risk is not working. It’s based on a formula that calculates the expected frequency times the expected severity, which is similar to the traditional way of measuring risk. But it’s not enough in the digital age, where the likelihood of occurrence is difficult to measure without a clear picture. And that’s where SecondSight comes in.

SecondSight provides a clear picture of a company’s risks, so they can properly assess their digital risk and mitigate some of that risk. One way to do this is by creating a digital asset inventory. This is basically a list of all the digital assets a company owns and utilizes, from images and PowerPoints to software plugins and programs. It might take a while to complete manually, but SecondSight can help by using its inventory builder features. Once a company has a comprehensive list, they can understand how each digital asset correlates with the business, how they contribute, and how they affect business continuity.

And the best part? Having a digital asset inventory not only helps companies find the holes in their cyber security, but it also makes them more insurable. If an insurance company has a digital assets inventory, they can see exactly what a company might be missing and how they’re protecting themselves. With SecondSight, both the insurer and the insured benefit, and it creates a world where cyber insurance can become equal to other types of insurance like property and casualty.

So there you have it! The future of cyber insurance is a bit uncertain, but we know that creating a clear picture of digital risk is the next step. With SecondSight, companies can protect their digital assets and become more insurable.

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