Nearly 80% of policyholders have had to use their cyber insurance at least once, and more than half of those have done so multiple times, according to a survey of 300 U.S.-based IT decision makers by software firm Delinea.
As a result of such high rates of coverage use, the firm reported, “insurers are pulling back on covering what is most needed, with only about 30% of organizations saying their policy covers critical risks including ransomware, ransom negotiation, and decision on ransom payment.” This presents a critical exposure as 40% of organizations cited risk reduction as the main reason for purchasing cyber coverage, 33% reported executive management and boards of directors required the purchase, and 25% said recent ransomware attacks were a “primary decision driver.”
Other top reasons for purchasing a policy included business contract requirements (24%) and recent data breaches (17%).