What role does Cyberinsurance play for businesses?

The cyberinsurance protects companies against the financial consequences of cyber attacks, including data breaches, ransomware, or business interruptions. According to IBM (2023), the average cost of a data breach reaches $4.35 million, a figure that rises to $4.54 million for ransomware attacks, not including ransoms.

Cyber cover helps limit these losses, but it is subject to strict criteria. Standard insurance policies often exclude cyber risks, leaving businesses exposed. In 2022, 57% of executives surveyed by Travelers believe that cyber attacks are inevitable, underlining the need for a dual approach: insurance and enhanced business security.

Although cyberinsurance covers many incidents, it does have limitations. Some common exclusions include:

• State-sponsored attacks (Lloyd's of London, 2023).
• Known unpatched vulnerabilities.
• Human errors resulting from lack of training, often exploited via targeted phishing attacks or ransomware.

Without robust security measures, companies risk having their claims denied. In 2021, AXA France announced it would no longer cover ransomware payments, a trend that is spreading across the global market. These decisions reinforce the need to secure IS upstream.

In 2021, Colonial Pipeline paid $4.4 million in ransom after an attack crippled its operations. Although the company recovered some of the funds, flaws in the initial security exacerbated the financial and reputational damage. A secure infrastructure could have limited the impact and reduced overall costs.

• EDR (Endpoint Detection & Response): these solutions monitor endpoints in real time to detect, analyse, and respond to threats. They provide an essential barrier against advanced intrusions and go far beyond a simple antivirus.
• Managed services: outsourcing security management to experts guarantees constant, proactive monitoring.
• Multifactor authentication and data encryption: simple but effective measures to block unauthorised access.
• Regular penetration tests: these identify vulnerabilities before cybercriminals exploit them.
• Securing teleworking, a now widespread practice, but one that considerably increases the attack surface of systems.

To maximise the effectiveness of a cyber insurance policy, it is imperative to adopt a proactive posture. Standards such as NIST ( National Institute of Standards and Technology) or ISO 27001 offer frameworks for strengthening security. In addition, an approach based on risk management enables vulnerabilities to be identified, prioritised and corrected before they are exploited.

Subscribing to cyberinsurance is not enough if a company's information system remains vulnerable. Insurers frequently refuse compensation in the event of a security failure, increasing organisations' financial exposure. Investing in an EDR, managed services, and a strengthened security policy makes it possible to effectively protect the IS, meet insurers' requirements, and above all prevent critical business interruptions. This proactive approach reduces risk while strengthening resilience in the face of an ever-changing landscape of cyber threats.

Traditional antivirus is no longer enough to effectively protect companies. A modern, managed EDR, such as that from Cyber By Scutum, offers a complete and adaptable solution to the needs of VSEs and SMEs. Protecting your business is a major challenge today, and EDR is the key to achieving it.