Cyber insurance is no silver bullet for cybersecurity

Cybercrime is projected to cost $10.5 trillion globally every year by 2025. Ransomware, advanced persistent threats, and data breaches push organisations to reduce their cyber risk. Cyber insurance is presented as a powerful tool to recover from incidents and a mechanism to incentivise better cybersecurity practices. The global cyber insurance market is expected to surpass $23 billion by 2026.

As reliance on cyber insurance grows, questions about its value and effectiveness in strengthening cybersecurity practices have come to the fore. Despite hopes in government and policy circles, the actual impact of cyber insurance on cybersecurity practices has not lived up to expectations.