Cyberinsurance.
It’s not the newest Michael Bay film but, as WIRED reports, it is a burgeoning, multibillion-dollar industry. And, now more than ever, a must-have for companies who don’t want to get “breached” out of business.
If it’s risky, insurers will come
As of 2016, cyberinsurers made about $3.5B in premiums worldwide — merely an appetizer compared to the $200B premium buffet US auto insurers bring in annually.
The difference is that cyberinsurance premiums have grown 30% annually in recent years, and the increasing frequency of large scale hacks means the stakes are only getting higher.
The Equifax breach, for example, is expected to cost the company about $439m, $125m of which is predicted to be covered by cyberinsurance.
Plus, regulators are cracking down on data protection
The EU’s new General Data Protection Regulation (GDPR) will go into effect May 25, and that means companies will be under the microscope to protect users’ privacy — and face larger fines if they don’t.
Oh, and this new law doesn’t just impact European companies, it applies to any company with European users.