In today's digital business landscape, cyberattacks are all too common. Devastating breaches occur almost daily, and no organization" no matter its size, industry, or available resources" can rest easy. In fact, research from Cybersecurity Ventures predicts that: Cybercrime will cost the world in excess of $6 trillion annually by 2021, making it more profitable than the global trade of all major illegal drugs combined.
In response to this unfortunate reality, the cybersecurity market is exploding. An abundance of new services and product offerings designed to protect applications, data, devices, infrastructure and people are continually being released, with estimates indicating that global spending on cybersecurity goods will exceed $1 trillion between 2017 and 2021.
Given the ever-rising threat levels, one of the most impactful cybersecurity products currently experiencing widespread adoption is, unsurprisingly, cyber insurance. Once reserved only for large enterprises with ample capital, cyber insurance is beginning to proliferate the small- and medium-sized business market due to its increasing accessibility, affordability and compliance benefits.
After analyzing data from a variety of our insurance carrier partners and hundreds of our small business customers, our team at CyberPolicy deduced the following 5 trends that demonstrate the significant momentum of cyber insurance:
1) Cyber Insurance Is Now the Fastest-Growing Insurance Product for Small Businesses
Due to increased cyberattack levels, chronic security gaps, and an influx of insurance contract requirements, demand for cyber insurance has skyrocketed.
Compared to the first half of 2017, this year CyberPolicy experienced a record-breaking 900% year-over-year growth in the number of policies sold, with 80% of its small business customers purchasing cyber insurance for the very first time. In Q2 of 2018 alone, 30% of CoverHound's (CyberPolicy's parent company) commercial insurance shoppers purchased cyber coverage compared to just 12 percent one year ago.
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