"How AI-Driven Cyber Insurance Can Help Measure the Financial Risk of Cyber Crime"

If a company fails to protect its critical data assets from ransomware attacks, the damage can cost millions of dollars to repair. According to IBM, the average global total cost of a data breach is $4.35 million. However, an increasing number of businesses are turning to cyber insurance to mitigate the financial risk of a data breach, and many vendors are turning to Artificial Intelligence (AI) to calculate the level of risk. For example, Elpha Secure Technology uses AI underwriting to assess risks in an organization's environment and provide an insurance quote. This method enables organizations to easily assess cyber risk and apply for insurance without having to perform the calculations themselves. Following Lloyd's decision to remove coverage for nation-state attacks, the cyber insurance industry is facing uncertainty. Elpha Secure Technology recently announced that it raised $20 million as part of a Series A funding round, demonstrating that investors believe enterprise cyber insurance coverage remains critical for surviving the current threat landscape. The acceleration of cyber insurance losses because of ransomware, social engineering, and other loss drivers has forced insurance carriers to require cybersecurity controls to be implemented before insuring a small business, according to Preetam Dutta, CEO of Elpha Secure. Researchers estimate that the global cyber insurance market will grow from $7.60 billion in 2021 to $36.85 billion in 2028, growing at a Compound Annual Growth Rate (CAGR) of 25.3 percent. Elpha is not the only provider currently using a platform-based approach to managing cyber insurance. Competitors, such as Coalition, offer enterprises an active insurance offering that provides a real-time view of digital risks across the environment, as well as on-demand support from a broker team to help mitigate potential liabilities. This article continues to discuss the growing costs of data breaches, organizations increasingly turning to cyber insurance, AI-driven cyber insurance, and the expected growth of the cyber insurance market. 

VB reports "How AI-Driven Cyber Insurance Can Help Measure the Financial Risk of Cyber Crime"