Insurance News
Cyber Insurance Prices Increase for Energy Companies
Highlights:
- The global cyber insurance market for energy is expected to grow from $102 million in 2021 to $442 million by 2030.
- Insurers have seen premiums rise of 25% to 30% due to growing sophistication of cyber attacks.
- Cyber Insurance being essential part of risk management for power plants around the world.
As the United States continue to experience an increase in the frequency and severity of cyberattacks on critical infrastructure, insurance companies are taking notice. The industry is particularly concerned with the potential for future attacks on the electric grid and other vital systems. As a result, they are raising insurance premiums for energy companies by double and triple digits.
While this may be financially burdensome for certain companies, the increased risk
requires higher premium costs in order to maintain this basic form of insurance protection.
The global cyber insurance market for energy is expected to grow from $102 million in 2021 to $442 million by 2030, and electric utilities procuring cyber insurance from industry-backed insurers have seen premiums rise 25% to 30%. Guide house insights reports that energy companies may see the steepest rate hikes when it comes to cyber insurance premiums. This is due to the growing sophistication of cyberattacks, the evolving threat landscape, and the rising cost of data breaches.
While there are a number of steps that energy companies can take to mitigate the risk of cyberattacks, the reality is that no organization is immune from this growing threat. The procurement of cyber insurance is therefore likely to become an increasingly essential part of risk management for power plants around the world.
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