Page 42 - The Insurance Times January 2025

Cyber Insurance

How Cyber

Insurance Shields

Organizations from

Cyber Threats and Evaa Saiwal

Business Head- Liability,
Financial Losses Policybazaar For Business
Cyber & Financial Risk at

Cybercrime like this is no longer the exception-it's the rule. Every organization, from global
enterprises to small-town businesses, is a target in today's hyperconnected world. Sophisticated
cybercriminals exploit vulnerabilities not just for financial gain but to disrupt and destabilize.

O n a quiet Monday morning, a midsize logistics years of trust painstakingly built with customers. In this digi-
tal minefield, the question is no longer if you'll face an at-
company opened its inbox to find a chilling mes-
tack but when. That's why businesses are turning to cyber
sage: all its critical files had been encrypted, and
the only way to recover them was to pay a hefty
ransom in cryptocurrency. Over the next 72 hours, the insurance as their safety net, ally, and financial safeguard.
company's operations came to a standstill. Customers grew The New Reality of Cyber Threats
frustrated, contracts were jeopardized, and the business Cyberattacks have become more sophisticated than ever
faced its darkest hour.
before. Phishing emails mimic trusted contacts with uncanny
Cybercrime like this is no longer the exception-it's the rule. precision. Ransomware locks critical systems, demanding
Every organization, from global enterprises to small-town millions for restoration. Even supply chains, once considered
businesses, is a target in today's hyperconnected world. secure, have become pathways for infiltration.
Sophisticated cybercriminals exploit vulnerabilities not just
for financial gain but to disrupt and destabilize. According to Verizon's 2023 Data Breach Investigations
Report, ransomware accounts for 24% of all data breaches,
The financial toll is staggering: IBM's Cost of a Data Breach with small and medium enterprises (SMEs) being dispropor-
Report 2023 revealed that the global average cost of a data tionately affected due to limited cybersecurity resources.
breach reached $4.45 million, the highest in nearly two Compounding the issue, research from Microsoft shows that
decades. Meanwhile, 75% of surveyed organizations ex- human error contributes to over 85% of breaches, empha-
pected to be breached again within the next year, highlight- sizing the need for vigilance and proper training.
ing the cyclical nature of these threats.
The stakes aren't just financial. A PwC 2023 Digital Trust
But beyond the numbers are real stories of loss. It's not just Insights Survey found that 90% of customers hesitate to
systems that are paralyzed; it's livelihoods, reputations, and engage with businesses that fail to secure their data ad-

The Insurance Times January 2025 37