A new deal between insurance provider Allianz and tech giants Apple and Cisco has wide-ranging ramifications for the cyber insurance industry. Allianz customers who rely on Apple and Cisco products are now eligible for lower or in some cases no insurance deductible at all.
The announcement was made after Allianz conducted a thorough in-house review of Apple/Cisco products and their attendant security technology. These products were determined to offer superior levels of security thanks to targeted protections built into the most vulnerable layers of hardware and software.
Anyone using Allianz, Apple, or Cisco is encouraging to investigate this agreement further. There could be ample cost savings available, but the agreement has implications for any business currently considering cyber insurance.
Cyber Insurance – An Industry in Flux
Cyber insurance is still relatively new to the insurance marketplace, but it has evolved rapidly in less than 20 years. As the size and scope of cyber threats has grown, so has demand. There are more businesses than ever searching for ways to guard against the financial consequences of cyberattacks. The agreement between Allianz, Apple, and Cisco illustrates the industry’s willingness to adapt to the changing needs of policy holders.
One issue with cyber insurance specifically and cybersecurity generally is the overall cost of protection. Companies have to invest extensively in both cyber defenses and cyber responses, often sacrificing one or the other. That means by improving the defense the response suffers and vice versa. Companies know they need cyber insurance, but there is only so much in the security budget to invest.
The deal stuck by Allianz is designed to bridge the gap. Instead of forcing companies to think of security as oppositional it enables a complementary approach – companies pick secure technologies and pay less for cyber insurance as a result. The current trend in cybersecurity right now is 360-degree solutions rather than piecemeal approaches. Creating a link between cyber insurance and front-line threat protection makes perfect sense.
Cyber Insurance Discounts for All
The Allianz agreement is notable, but it’s not the only generous discount available to policy holders. Cybersecurity premiums reached $1.35 billion in 2016, underscoring how lucrative this industry is. Cyber security insurance providers compete aggressively to attract customers with lower costs and higher levels of coverage.
The best way for any company to get the best rate possible is to do extensive research. As with any type of insurance analysis, comparison shopping is important. Rates can vary widely, and it’s worth doing more research in order to pay less.
Many providers also offer a variation of the Allianz offer. Companies receive discounts or perks in exchange for demonstrating superior security or upgrading current security. That may involve an early investment, but it’s offset by ongoing insurance savings.
The key takeaway, however, is that cyber insurance is not the only component to a cybersecurity strategy. It’s also not a component that can be left out. Companies that enjoy true cybersecurity take an end-to-end approach. They deflect as many threats as possible, but they also plan and prepare for the ones they can’t.