New research from Advisen and ID Experts has found that cyber insurance leaves businesses out of pocket for the majority of loses caused by data breaches—and worse, it encourages lax cyber security protection.
Cyber coverage is growing in popularity, spurred primarily by several recent high-profile data breaches that caused millions of dollars of losses for major health providers and corporations like Anthem, Premera Blue Cross, Target, Sony, and Home Depot.
In a perfect world, cyber insurance would be affordable enough for small companies to protect sensitive data and expansive enough to protect large corporations from losses in the hundreds of millions of dollars. Unfortunately this is not the case. The reality however is that Cyber-Insurance is not enough.
As the risk of data breaches grows and more and more companies are looking for protection, cyber insurance companies have been forced to hike their premiums and deductibles. Of 200 companies surveyed, 25% said that they had suffered a data breach in the last 12 months that fell between 90-100% below their deductibles. Many cyber insurance providers are limiting coverage to $100 million or less, despite the fact that data breaches at large corporations regularly cause losses of twice that or more.
For example, Target lost $264 million in a 2013 data breach and only received $90 in coverage. After Home Depot’s $234 million in losses from a 2014 data breach, they ended up receiving only $100 million from their provider. Sony Corp, owner of Sony Pictures, was hit hard by a data breach in 2014. Their cyber insurance coverage was reduced, and they’ve publically stated that another data breach would leave them in serious financial trouble. They would most likely attest that what they really need is “Cyber Life Insurance”, such as CertainSafe® provides.
As if minimal coverage wasn’t bad enough, many retail and health insurance companies have seen their cyber insurance premiums skyrocket. The average rate for retailers increased 32% in 2015 after years of remaining flat. Cyber insurance companies have also made it more and more difficult for hard-hit customers to renew their policies.
The Solution? Advanced Data Breach Protection
CertainSafe eliminates the possibility of a data breach much less a mass data breach with the deployment of advanced proprietary MicroEncryption® and MicroTokenization® technology. Our game changing methodologies “Micro”-encrypts, disassembles and individually stores sensitive data in multiple pieces/slices/segments—all while retaining ease and speed of authorized access. Now that is solid Corporate “Life Insurance” against data theft. . . Visit http://www.certainsafe.com today to learn more about our unique “Award Winning” security.