SMEs are Focusing on Increasing their Cyber Insurance Budgets

Bad actors can attempt to get hold of any personal information on customers, including their credit card details and email addresses, to commit fraud or even sell their personal information on the dark web

Fremont, CA: Many industries across the world have been victims of cyberattacks. While attacks on high-profile targets such as airlines and hospitals typically become big news, analysts state that the case of cyber attacks on smaller firms is increasing. In 2019, ransomware victims collectively paid US$1.3 billion to attackers.

SMEs are vulnerable to cyberattacks as attackers are taking advantage of a company’s technical weaknesses and their employees. This is possible in the current situation where a distributed workforce is commonplace. Bad actors can attempt to invade to get hold of any personal information on customers, including their credit card details and email addresses to commit fraud or even sell their personal information on the dark web.

Research has also expressed that cybercriminals view SMEs as possible doorways to gain access to the network of a larger company. Sometimes, the damage and recovery costs of businesses having to deal with the after-effects of malicious attacks slow down productivity and, in some cases, deteriorate trust between firm and clients.

Although advanced cybersecurity systems are embracing emerging technologies like cloud, AI, and quantum computing, organizations that believe impenetrable security can be built with just a set of purchased technology tools are leaving themselves more vulnerable than ever. The growing cyberthreat landscape indicates the need for a more holistic security plan and an additional layer of protection to prevent malicious activities.

Rising cases of pandemic-induced cyberattacks, together with an increase in mandatory legislation regarding cybersecurity, are expanding the global cyber insurance market. Aware of the possible cyberattacks, SMEs are looking to have cyber insurance that can help counter the blow of an attack. A new survey showed that while companies of all sizes plan to invest in cyber insurance, SMEs are reserving more of their budgets for cyber insurance in the coming years.

See Also: Top Insurtech Companies