Cyber Insurance Premiums Rise As Hackers Continue To Breach Their Security
The cost for cyber insurance against hacking attacks has risen drastically for companies that have been victims of such attacks. As the number of data breaches into both government and corporate servers has increased in recent years, the average insurance rates for retailers rose over 30% in the first half of 2015, leading to criticisms that the money spent on insurance would be better spent on prevention methods.
Even though it has been around since the year 2000, cyber security has been a difficult product to price due to the small size of the market and a lack of historical data. As cyber insurance firms seek to protect themselves from the high costs associated with a cyber breach, the value of annual premiums is expected to increase from $2.5 billion to $5 billion by 2018, according t...