FREMONT, CA: The emergence of cloud computing and the resulting concerns of cloud security has made cyber insurance a trending topic in the technological world. Cyber insurance is an upcoming industry, designed to alleviate the losses incurred from cyber attacks. However, its evolution is at a nascent stage when compared to the mainstream insurance industry.
According to a report by Timetric, the rise in the number of attacks and concerns over cybersecurity and endpoint protection has made organizations turn toward cyber insurance as a significant mitigation solution. Even though cyber insurance complements the cybersecurity standards, it cannot be considered a replacement for cybersecurity technology. The adoption of cyber insurance is no longer a subject up for debate, as most organizations have adopted cloud technology.
The rise in the popularity of cloud technology is prompting insurers to invest in the cloud sector. According to a report by Deloitte Insurance Outlook, insurers are incorporating cloud technology into their operations for seamless digital integration. Since cloud computing involves moving data to and from third parties in different locations, it has caused unrest among the regulators.
The adoption of cloud computing is fueled by the prospects of cost savings, pay-as-you-consume contracts, speed, flexibility, scalability, and efficiency. As the insurance sector faces the pressure to digitalize its processes, the various insurance CIOs are looking to incorporate cloud to deliver prompt services instead of relying on the on-premise deployments.
The Ovum survey shows that most software-as-a-service (SaaS) applications are hosted in a cloud. Hence, insurers are also leveraging the enhanced capabilities offered by the cloud. Insurers are prioritizing cloud technology when making IT investments and deploying new applications. The advanced features provided by the cloud have equipped the organizations with better analytics to assist them in their decision-making process.
To protect their cloud infrastructure and that of their consumers, it has become imperative for cyber insurers to ensure robust cybersecurity. Cyber insurers need to hold the cloud providers accountable for the security of the hardware and software of their cloud offerings, while also keeping track of the implications and regulations surrounding cyber threats. The growing investments in cloud technology and digital infrastructure have made cyber insurance an essential factor to ensure cloud security.