Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

As Cyberattacks Rise, 2015 Looks Very Bleak: A Brief on Cyber-insurance


Published on

Since hackers infiltrated retail giant Target and accessed millions of credit/debit card information, the year 2014 has been a brutal one for cyber threats. The predictions do not look any better for 2015 either.

Published in: Internet
  • Be the first to comment

  • Be the first to like this

As Cyberattacks Rise, 2015 Looks Very Bleak: A Brief on Cyber-insurance

  1. 1. As Cyberattacks Rise, 2015 Looks Very Bleak: A Brief on Cyber- insurance
  2. 2. 2013-2014: Christmas Season for Cyber Attacks • In 2013, hackers pulled off what is known as one of the biggest data breaches in history. They infiltrated Target's point-of-sale (POS) terminals and stole more than 70 million credit/debit card numbers. • Till date, about 20 major U.S. retailers have fallen victims to data breaches. On the whole, there had been 679 security breaches spanning across various industries. • About 288 cyber incidents were reported in the medical/healthcare industry, while 218 of those were found in the business sector. • Eighty incidents in government/military sector, 52 in the educational division, and 41 in the banking/credit industry were reported. • Around 43 million attacks were detected by companies in 2014, an increase by 48 percent since 2013. • From financial services to top retailers, on industry has been secure.
  3. 3. What are Industries Planning to do? • Cybersecurity spending is expected to touch $71 billion in 2015, a 7.9 percent increase since 2013. • The spending is estimated to grow 8 percent every year through 2016. • Considering the myriad of advanced attacks between cyber criminals and security software vendors, experts believed in a big ramp in cyber security spending. • As cyber-warfare heats up, the spending will add to the growth prospects at next-generation security software firms. • Reports indicate that IT professionals are shifting their investments from conventional security technologies, like perimeter defenses, and to sophisticated cyber protections. • Owing to this shift, many software vendors appear well-positioned heading into 2015.
  4. 4. Booting the Funds for Cyber Start-ups • The rapid rise in security incidents has spurred venture capitalist firms, in particular corporate venture arms, to spend money into cybersecurity start-ups. • One of the biggest issues is that it is difficult to safeguard a company absolutely. That is why there is a venture capital money flood into start-ups. • Investors see a good opportunity for innovation to solve tough security problems existing out here today. • Funding for cybersecurity firms including corporate participation is 29 percent higher than in 2013 and 129 percent more than in 2012. • Tech titan Google and world's largest semiconductor chip maker Intel are two major corporates investing in this space. • Even with so much money being invested in these start-ups, the influx of young firms indicate a fierce competition. • The flood of new entrants trying to get a foothold indicate that venture capital companies evaluate thousands of ideas. Some stick to them, while some do not.
  5. 5. Boom in Cyber Insurance • The insurance sector is also involving on one side to meet the growing demands caused by the rise in cyberthreats. • Companies are increasingly offering cyber-insurance to give coverage for expenses associated with a data breach or cyber attack. • Some of the costs include forensic and legal expenses, civil fines, and losses to a firm by an attack. • There is additional coverage to cover cyber-extortion expenses. • There is no government or business that is completely immune to cyber attacks. That is why we see massive amounts of money being spent on cybersecurity in 2014. • According to statistics from Marsh & McLennan, a U.S.-based insurance broker, cyber-insurance sales grew 21 percent from 2012 to 2013. • In the first half of 2014, the percent doubled. • Thirty percent of financial institutions have bought cyber-liability insurance, while retail sector follows with 18 percent. • Education industry (14 percent), professional services (13 percent), healthcare and technology (10 percent), and all other industries (38 percent).
  6. 6. More Info
  7. 7. More Info