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

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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.

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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 https://blog.whichssl.com/2013/02/comodo-ice-dragon-putting-the-freeze-on-cyber-attacks/
  7. 7. More Info https://blog.whichssl.com/2013/02/comodo-ice-dragon-putting-the-freeze-on-cyber-attacks/

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