Delinea report reveals that nearly 80% of companies have had to use their cyber insurance

Delinea report reveals that nearly 80% of companies have had to use their cyber insurance

Delinea, a leading provider of Privileged Access Management (PAM) solutions for seamless security, today published a new report showing that cyber insurance not only has become ubiquitous but more than half of companies that have leveraged their coverage have used it more than once.

As a result, insurers are pulling back on covering what is most needed, with only about 30% of organisations saying their policy covers critical risks including ransomware, ransom negotiation and decision on ransom payment.

The survey, conducted among 300 US-based IT decision makers by Censuswide, found that nearly 70% of organisations have applied for cyber insurance, with 93% being approved when they applied and 65% claiming the process took less than three months.

While risk reduction is the main reason for applying (40%), one-third (33%) of respondents claimed that it was also due to requirements from executive management and boards of directors and 25% cited recent ransomware incidents as a primary decision driver.

Given the pressure coming from the top, it’s therefore no surprise that 93% received the budget required to purchase their cyber insurance policies even as 75% of respondents said premiums increased in their last renewal.

“Executives and boards use cyber insurance to lower the costs associated with potential breaches,” said Art Gilliland, CEO of Delinea. As a result, most organisations are scrambling to buy or renew a policy, even as the insurers pull back on what they will cover and simultaneously raise the price of coverage.”

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