Using Insurance to Mitigate Cybercrime Risk

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Challenges and recommendations for insurers

While technological advancements, evolving computer data systems, and internet access offer significant benefits to businesses and their customers, a major challenge that comes with the increased use of technology is an increase in the risk of cybercrime attack. Cybercrime has significant financial and non-financial implications for businesses.

To prevent cyber crime incidences, most companies employ cyber-security measures which include a combination of technology and security procedures. However, since cyber attackers are continuously discovering new ways to exploit vulnerabilities, cyber security alone cannot prevent all potential attacks.

This paper looks at how cybercrime insurance can protect companies from the costs of cybercrime. We explore the challenges for insurance companies offering cybercrime policies, analyze the required investments, and provide recommendations.