According to a report released by Howden on Monday, despite an increase in ransomware attacks, global cyber insurance rates are decreasing as companies become more adept at mitigating cybercrime losses.
In 2021 and 2022, cyber insurance premiums surged as the COVID-19 pandemic led to a spike in cyber incidents, prompting companies to pay higher rates to protect against attacks.
However, according to Howden's annual report, insurance rates have been declining over the past year. Howden noted that the cyber insurance market saw double-digit decreases in rates for the 2023/24 year.
Enhanced security measures, such as multi-factor authentication, have helped protect company data, thereby reducing insurance claims.
Sarah Neild, Head of UK Cyber Insurance at Howden, stated, “Multi-factor authentication is the most basic security measure, akin to locking your door when you leave the house.”
She added, “Cybersecurity is a multi-layered system,” highlighting greater investments in IT security, including employee training.
“Overall, clients’ defensive capabilities have strengthened.”
Neild also mentioned that despite the rise in cyberattacks, the increased willingness of insurers to provide cyber insurance has contributed to the price decline.
