Rising data breech costs drive cybersecurity insurance sales.

• Position: CYBERSECURITY

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Increasing costs related to data breaches are prompting enterprises to purchase cybersecurity insurance. A new study from Ponemon Institute revealed that 31% of the respondents already have the specialized insurance while 57% of those without it plan to purchase a policy.

Most (70%) of the companies that have purchased a cybersecurity insurance policy have learned first-hand just how costly a breach can be. The respondents reported the average financial impact on companies suffering a breach was $9.4 million. The average potential risk of future incidents was estimated to be $163 million, due largely to the anticipated loss of confidential business information.

From a business perspective, 41% of the respondents consider cybersecurity risks to be greater than other insurable business risks such as natural disasters and business interruption. More than a third (35%) said cybersecurity risks are equal to other insurable business risks.

Many of the policies that have been issued cover expenses incurred during and after a breach...