Cyber insurance has become one of the fastest-growing insurance lines as data breaches and cyber attacks continue to rise. In 2021, the global cyber insurance market was valued at USD 7.4 billion and is projected to reach USD 30 billion by 2026. However, cyber insurance policies don’t adequately protect against many modern cyber threats. This is where Silverfort comes in.
Silverfort offers a cloud-scale Identity Detection and Response platform that provides unmatched visibility into all endpoints and identities. By integrating Silverfort into cyber insurance offerings, insurers can significantly reduce claim costs while empowering clients with advanced cyber protection. In this guide, we’ll explore the benefits of combining Silverfort’s Identity-based risk insights with cyber insurance. Read on to learn how Silverfort and insurers can partner together to improve cyber resilience.
What is Cyber Insurance?
Cyber insurance is designed to help an organization manage risks associated with the use of digital technology and the internet. It protects against cybercrime events like data breaches, cyber extortion, and network outages.
The concept of cyber insurance emerged in the 1990s as businesses began to rely more heavily on computer networks and the internet. Insurers recognized the need to develop specialized policies to cover risks associated with our growing dependence on technology. The first cyber insurance policies protected against network and data risks as well as liability from e-commerce activities.
Over time, cyber insurance has evolved to keep pace with emerging cyber threats. Modern policies can include coverage for:
- Data breaches and privacy violations
- Ransomware attacks
- Business interruption from network outages
- Cyber extortion demands
- Hacks of smart devices and systems
- Media liability for copyright infringement online
- Crisis management expenses
With cyberattacks on the rise, cyber insurance has become an increasingly important tool for managing digital risk. It provides financial resources to help minimize damages and continue operations after a cyber incident. The cyber insurance market has expanded rapidly and is projected to grow in the years ahead as more businesses recognize the value of proactive cyber risk management.
Why is Cyber Insurance Important?
Cyber threats and security risks have been accelerating over the past decade. As organizations continue their digital transformation journeys and conduct more of their business online, they become lucrative targets for cybercriminals. The potential damages from a cyberattack can be immense, including stolen funds, compromised data, ransoms paid, disrupted operations, legal liabilities, and reputational harm. No organization or individual is immune to cyber risks in today’s hyper-connected world.
Some key trends demonstrating the growing cyber threat landscape:
- Cybercrime is now a trillion-dollar industry, with ransomware, business email compromise, and data theft being especially lucrative for attackers. The use of ransomware alone increased over 150% from 2020 to 2021.
- Nation-state-backed cyberattacks are on the rise, often targeting critical infrastructure and classified data. High-profile hacks like SolarWinds demonstrated how even the largest enterprises can fall victim.
- Supply chain attacks increased in 2021, threatening downstream partners through compromises of software vendors, IT providers, and other suppliers.
- Social engineering remains a top vector for attackers, exploiting human vulnerabilities rather than technical ones. Phishing, smishing, and vishing campaigns became even more sophisticated.
- The shift to remote work during the pandemic increased vulnerabilities, with employees accessing sensitive systems and data from home networks.
- The growing Internet of Things surface area provides new weak points like smart buildings, wearables, and operational tech that attackers can leverage.
- Threats like ransomware-as-a-service lower the barrier to entry for less sophisticated actors.
The potential business impact of a cyber incident in today’s climate extends well beyond just the direct costs. It can harm customer trust, shareholder confidence, and access to capital. Liability concerns and regulatory fines may also follow an incident. Proper risk transfer mechanisms like cyber insurance have therefore become critical for most organizations’ risk management strategies. The costs and unpredictability of potential cyber damages make insurance an important tool.
What Does Cyber Insurance Typically Cover?
Cyber insurance policies can cover a variety of cyber incidents, risks, and costs that a business may face. Some of the most common coverage includes:
Data breaches – Provides coverage for costs associated with a data breach, such as:
- Legal fees, forensic investigations, and public relations to manage the incident
- Customer notification and credit monitoring
- Regulatory fines and penalties
- Lawsuit judgments and settlements
Ransomware and cyber extortion – Covers costs related to recovering from a ransomware or other malware attack, including:
- Ransom payments (although this may be limited)
- Data restoration and recreation
- Lost income during an attack
- Crisis management expenses
Cyber business interruption – Provides coverage for income loss and extra expenses due to suspended operations caused by a cyber attack.
Cyber crime – Covers direct losses due to cyber crimes such as:
- Funds transfer fraud
- Theft of money or securities
- Bricking of computers by malware
Cyber liability – Protects against liability lawsuits alleging failures of network security, such as lawsuits from customers whose private data was exposed.
Data loss/destruction – Provides coverage for costs to replace or restore lost or corrupted data or software.
Cyber deception – Covers losses from social engineering attacks, like fraudulent instructions to transfer funds.
Cyber extortion – Provides coverage for extortion payments and associated crisis response expenses, when hackers threaten to damage systems or reveal data.
Network security liability – Protects against liability for failures to prevent unauthorized access to a network that results in lost data.
Proper cyber insurance can be invaluable for managing the myriad risks and high costs that businesses today face from cyber attacks. The right policy provides crucial protection for data breaches, ransomware, cyber extortion, and other cyber incidents a business may encounter.
Introducing Silverfort
Silverfort is a pioneering cybersecurity company that provides innovative agentless solutions to secure enterprises from within. Founded in 2016 by seasoned cybersecurity experts, Silverfort aims to reinvent enterprise authentication and authorization by eliminating the need for cumbersome agents that burden end users and IT.
The Silverfort Unified Identity Protection Platform delivers a comprehensive set of capabilities across the identity and access management space, including:
Multi-factor Authentication (MFA) – Silverfort offers flexible, agentless MFA that enhances security without hampering productivity. Adaptive authentication mechanisms include email, SMS, biometrics, push notification, voice, and more.
Single Sign-On (SSO) – The platform enables SSO across cloud apps, VPNs, and corporate networks while simplifying access for end users. SSO is achieved without agents through API integration.
Just-in-Time Privilege Elevation – Silverfort allows a temporary elevation of user privileges based on contextual parameters. This minimizes standing privileges and enhances data protection.
Continuous Authorization – User access is continuously reassessed based on comprehensive contextual data. Suspicious activity automatically triggers stepped-up authentication demands or access revocation.
