It’s Official: Cyber Insurance is No Longer Seen as a 'Safety Net'

Cyber Insurance No Longer Safety NetA new report on the state of email security sheds some light on how organizations are viewing and approaching cyber insurance as they shift strategy toward being cyber resilient.

The topic of cyber insurance has been covered quite a bit here on this blog. From when cyber insurance first began as a concept, to the challenges it poses for organizations looking as their last resort after an attack, to changes in insurance policy and law.

Now it seems organizations are largely realizing what cyber insurance can and can’t do for them.

According to new data in Mimecast’s State of Email and Collaboration Security 2024 report:

  • 65% of organizations no longer see “cyber insurance as a comprehensive safety net for coping with cyber threats” — this is up from 50% last year
  • 66% are less likely to rely on cyber insurance “due to the restrictions insurers are placing on these policies” — up from 52% last year

However, this doesn't mean everyone is running away from cyber insurance. According to the report, 99% still have a policy and 45% have two or more. Cyber insurance still has a meaningful place for organizations, but for very specific coverages of very specific attack events.

In other words, its intended use is heading toward coverage of catastrophic cyber events.

This means that organizations are compensating with stronger security controls that align with attacks that include protecting email, protection from AI-based attacks, and security awareness training to get the user to play a role in protecting the organization.

KnowBe4 empowers your workforce to make smarter security decisions every day. Over 65,000 organizations worldwide trust the KnowBe4 platform to strengthen their security culture and reduce human risk.

Free Phishing Security Test

Would your users fall for convincing phishing attacks? Take the first step now and find out before bad actors do. Plus, see how you stack up against your peers with phishing Industry Benchmarks. The Phish-prone percentage is usually higher than you expect and is great ammo to get budget.

PST ResultsHere's how it works:

  • Immediately start your test for up to 100 users (no need to talk to anyone)
  • Select from 20+ languages and customize the phishing test template based on your environment
  • Choose the landing page your users see after they click
  • Show users which red flags they missed, or a 404 page
  • Get a PDF emailed to you in 24 hours with your Phish-prone % and charts to share with management
  • See how your organization compares to others in your industry

Go Phishing Now!

PS: Don't like to click on redirected buttons? Cut & Paste this link in your browser:

Subscribe to Our Blog

Comprehensive Anti-Phishing Guide

Get the latest about social engineering

Subscribe to CyberheistNews