Cyber insurance industry faces rising claims and vulnerabilities

The cyber insurance industry is facing significant challenges as cyber threats continue to rise. A report from the National Association of Insurance Commissioners shows a 20% increase in claims and a 72% rise in claim severity in 2023 compared to the previous year. Small and medium enterprises (SMEs) are particularly vulnerable, lacking the resources to manage numerous cybersecurity vulnerabilities. The industry needs to focus on supporting these businesses and improving their cybersecurity measures to reduce risks and claims. Additionally, the industry lacks standardized data on cyber risks, making it difficult to assess and mitigate them effectively. A shift towards continuous monitoring and better understanding of technology interdependencies is necessary to enhance the resilience of the cyber insurance market.