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"Cyberinsurance" in High Demand


June 15, 2011

The "cyberinsurance" industry is experiencing an up-tick in business with recent high-profile breaches driving companies' desire to protect themselves from spending potentially millions of dollars on breach-related costs. Companies are upgrading IT and human resources practices and training employees in order to get coverage--in some cases worth hundreds of millions of dollars. "Concensus is building" on what policies cover, but standardization remains a hurdle, says one insurance expert who predicts, "One day the industry will actually be so robust that...we'll have the leverage to actually create standards." A Ponemon Institute study shows the average breach cost $7.2 million last year, "But with the scale and scope of hacking attacks growing daily, some companies cannot be cautious enough," the report states.
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