Why cyber insurance is helping enterprises adopt best practices
The rise of ransomware has developed the perception that , in the event of a cyberattack attack , there is a risk that payouts will exceed revenues , making insurers more judicious about taking on a customer along with a lengthy list of caveats , explains Mohammad Ismail at Delinea .
As the number and sophistication of cyber-attacks has increased , organisations in the Middle East have steadily ramped up their cyber defences . But as successful attacks against some of the region ’ s largest organisations have demonstrated , even deep pockets do not guarantee protection . Unsurprisingly , organisations are increasingly opting for a final fallback line and today , the majority , 63 % of MEA companies admit to having purchased some form of cyber insurance .
This figure is not far behind that in the US , where a 2022 Delinea survey found that 70 % of respondents worked for organisations that had applied for cyber insurance , and of these , 93 % were approved . More than half of the insured organisations that went on to make a claim ended up using the same policy again more than once .
This is consistent with many regional cybersecurity surveys that , for example , show ransomware victims being hit multiple times . Cyber insurers are getting wise to this oversized risk and Delinea ’ s research showed only around 30 % of organisations being covered for ransomware-related events .
Here in UAE , where the cyber insurance market is forecast to expand at a CAGR of
Mohammad Ismail , VP Middle East , Africa and Türkiye , Delinea more than 25 % between now and 2028 , we find similar anxiety .
CIOs and CISOs are rightly concerned about the impact of an errant click here or a missed vulnerability there . Even as technology teams work diligently to protect what matters most , they know that it is misguided to assume they can cover every eventuality . And strict regulations here stipulate that businesses that experience a breach must report it to the relevant authorities .
It is little wonder that there is a ballooning demand for cyber insurance across the Middle East , particularly in the UAE and Saudi Arabia .
Housekeeping
The journey to find the most comprehensive and reassuring policy is fraught with challenges . Businesses are accustomed to having buying power . They are accustomed to dictating terms when dealing with suppliers . Rarely do they find themselves in the position of having to negotiate with a seller for the privilege of buying . But that is exactly the experience that awaits most enterprises that goes shopping for cyber insurance .
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