Cyber Insurance is a type of insurance designed to protect companies & individuals against the wide range of risks & threats associated with the digital business environment. With the rise of the internet as a vital business tool, criminals are increasingly targeting organizations using more sophisticated techniques.
Cyber Insurance provides vital support for the costs of items like Reputation and Crisis Management, Forensic Investigations, Network Restoration, Ransom Payments, Legal Fees, and even regulatory fines. Cyber insurance is an insurance product used for protecting businesses from risks associated with internet connectivity and information technology infrastructure & activities.
It covers business liability for a data breach, including critical customer information, like credit cards, social security numbers, account numbers, driver's licenses, & health records. Moreover, it also provides coverage against extortion, theft, and data destruction.
The risk of cyberattacks is one of the major concerns increasing astronomically across various institutions, individuals, & financial markets. It has reached the top position in the list of business risks. As a result, the increasing number of cyber incidents and the constant digital transformation are propelling the demand for cyber insurance. A recent research report has indicated that the UAE Cyber Insurance Market is projected to grow at around 25.6% during 2021-26.
Get a sample copy of the market analysis @: https://www.marknteladvisors.com/query/request-sample/uae-cyber-insurance-market.html
Various Advantages of Adopting Cyber Insurance
Cyber insurance helps improve cyber security and protect against large-scale security incidents by inspiring the adoption of best cyber security practices. It offers a smooth funding mechanism to help businesses recover from major losses. Following are the industries that should adopt cyber insurance. Have a look:
- Banking: Banks are highly susceptible to cyberattacks since they deal with the critical data of customers, including their bank details, contact numbers, etc. Hence, there is a high need to secure digital banking channels and counter fraud. Due to this, the adoption of cyber insurance is increasing significantly in the banking sector.
- Information Technology: Cloud services providers are targeted majorly for distributed denial-of-service attacks, which can result in causing collateral damage to the clients.
- Healthcare: With the growing digitalization in the healthcare industry, the personal data stored online is increasing. Most hackers target organizations that are responsible for handling sensitive customer data. Moreover, since the healthcare industry is one of the most attractive sectors for hackers, disruption to the healthcare system can lead to both real & reputation impacts. Hence, cyber insurance in the healthcare industry is becoming very important.
- Retail: Web attackers often target the industry that offers rich digital services to clients. The complex website of retailers can be breached to extract customer data or provide a route into their core businesses. Attackers can also target the retailer’s point-of-sale terminations, which, in turn, may lead to substantial financial losses and losing customer trust. Hence, the need for cyber insurance is vital for retailers.
Takeaway
As the frequency of cyberattack incidences is increasing dramatically, cyber insurance operations have been evolving. Cyber insurance provider’s policies to businesses that pay little attention to their security. Paying for cyber insurance is a costly option. However, many organizations are becoming more focused on taking preventive measures than suffering from financial losses in the future. Therefore, they are investing in cyber insurance to protect their assets & liabilities. Based on the aspects cited above, the Cyber Insurance Market in UAE is expecting significant expansion in the years to come.