by | 26 Sep 2015

Cyber-insurance and small business companies

In line with the importance of last security attacks (Sony, JPMorgan), vulnerabilities (Heartbleed, ShellShock), and major data theft (Orange, Target, eBay), 2015 should confirm the development of the cyber insurance market.

Why SMEs are an attractive target for cyber-criminals?

Many SMEs have been ignoring the threats to their IT infrastructure as they simply don’t understand their exposure. They assume they aren’t viable targets, and they won’t consider insurance due to the cost. While the insurance market can play a critical role in getting firms better protected.  Not only by offering premiums that cover for any losses as the result of an attack, but by acting as a control, whereby the insurance companies ask the right questions and make sure that firms are up to a certain level of security.

Small and medium sized companies are putting a third of their revenue at risk because they are falling for some of the common misconceptions around cyber security, leaving them vulnerable to losing valuable data and suffering both financial and reputational damage.

Cloud is the new model for cybersecurity innovation

Cloud-based services offer SME IT facilities that were once a luxury only for large businesses. Thanks to IaaS and SaaS solutions, IT organizations of Small-Medium Enterprises (SMEs) use a variety of providers to support their diverse business needs (storage, data backup, messaging, collaboration, customer relationship management, web sites, CMS, eCommerce  and transactional sites …).

SaaS solutions have everything to seduce SMEs: no installation needed, low cost to use, resilience, scalability, ubiquity … All the benefits of information technology without the drawbacks. According to a recent market research, in 2016, SMEs should spend 50% of their investment in SaaS solutions.

Cyber-insurance: an opportunity to innovate

Even more than before, SMEs require operational security solutions, not just recommendations, or low cost solutions. Cybersecurity should be understood as a dynamic process, constantly adapting to new threats.

To provide SMEs with innovative cyber-insurance products combining preventive and remedial measures, we believe that the time has come for the insurance companies to partner with specialized startups in cybersecurity. You are an insurance company and you are looking for a partner in cybersecurity? Don’t hesitate to contact OZON!