Cybercriminals becoming savvier, insurers to shy away from risk: report

A nonprofit research organization predicts growing cybercriminal capabilities and more stringent insurance criteria for dealing with such risks

Cyber

By Allie Sanchez

The “Threat Horizon” report by nonprofit organization Information Security Forum (ISF) said that the increasing level of cybercriminal capabilities is expanding and exploiting gaps in international policing abilities.

ISF further said the technical capability and reach of these cybercriminals is already at par with those of governments and other institutions. This is expected to grow further beyond their victims’ ability to cope in the coming years.

Miscreants are exploiting the lack of cross-border cooperation among governments in dealing with their nefarious activities, ISF noted, and cybercriminals understand that there is no consistency among nations in the way policing is being carried out.

In response to these increasing threats, ISF predicted a change in the cyber insurance landscape. The organization said carriers will incur huge financial losses over the next two years due to several large data breaches.

Insurers who have “mispriced” cyber risk are expected to respond by setting more stringent policy requirements for policyholders, narrowing the scope of existing products, increasing premiums and limiting underwriting to sectors perceived to carry lower risk.

To cope, ISF advises enterprises to reassess risk management strategies prior to a crisis and closely examine cyber insurance policies for potential costly exclusions.
 

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