Cyber-attacks have been rated the fifth top-rated risk and become the new norm across public and private sectors.The financial and insurance sector remains a popular target for cybercriminals as they have a credible store of personally identifiable information (PII) and financial data and when exposed, make for highly damaging situations.
The finance and insurance sectors now fall under critical infrastructure legislation globally. This includes banks and other ADIs, financial markets, financial benchmark providers, payments systems, derivatives trading repositories, clearing and settlement facilities, credit facility businesses, insurance and superannuation businesses. With sensitive assets such as storage and payment terminals providing a large attack surface, ransomware operators and initial access brokers are having a field day in the sector.
This risky industry continues to grow in 2022 as cyberattacks alone are expected to double by 2025.
A significant disruption to financial market infrastructure assets has already had a detrimental impact on public trust, financial stability and market integrity and efficiency.
Due to the increase in endless cyber attacks and rising costs of cyber incidents ,it's becoming increasingly common for organizations to adopt cyber insurance as an important aspect of their risk management and the cost of cyber insurance has doubled on average each year for the past three years. A small or medium-sized business wanting to buy $10 million of cover would, on average, face a $60,000 premium, up from $33,000 a year ago, A large company wanting to purchase $20 million of cover would pay about $350,000, up from $194,000 a year ago. However, is there an opportunity for cyber insurers to work alongside organizations to elevate cybersecurity defences, to meet regulatory obligations and help reduce premiums for organizations?