Organizations are facing an increasing gap between affordable cyber coverage and comprehensive protection, according to software firm Delinea’s 2023 State of Cyber Insurance.
The report found that the time and effort required to obtain cyber coverage has surged, with an increasing number of respondents reporting the process took six months or more. Two-thirds of buyers said their rates increased 50% to 100% upon application or renewal, while coverage has been dramatically reduced by a growing list of exclusions, including: lack of security protocols (43%), human error (38%), acts of war (33%), and not following proper compliance procedures (33%).
Cyber coverage is more critical than ever, with almost 50% reporting they used their coverage more than once in the past year.
“This ‘cyber insurance gap’ could put a lot of organizations in a tough place when a cybersecurity incident occurs, and they want to utilize this financial safety net,” said Joseph Carson, chief security scientist and advisory CISO at Delinea.